Instructions: Answer all questions completely. This exam is open book and open note. The only thing which is not open is consulting other individuals. In other words, you must do the work on your own.
You are encouraged and required to cite readings from class and other sources (such as specific pages in your textbook). If you don’t have at least one citation per answer, you should be worried (and will be penalized). Make sure that you are not attributing the ideas of others as your own work. Plagiarism is a violation of the University’s Academic Integrity Policy, even if it is unintentional. The best way to avoid this is to always provide citations, even when in doubt. For this exam, always use your own voice in your answers and avoid excessively long quotations from others. When in doubt, cite!
Based on the readings from class or other sources, choose one topic where economists mostly agree and one where they disagree. Summarize the ways in which economists agree or disagree, and also provide a discussion of the issues using the tools from your micro and macroeconomics principles courses (in other words, what about the tools of economists would lead to agreement or disagreement on your chosen issues?).
Identify one specific economic activity (production or consumption of a particular good) that you believe generates significant negative externalities. First, explain the nature of the externality. Second, describe several solutions a society may use to solve this external
Perform the same analysis as question #2, but for a good with positive externalities.
Describe and explain the evolution of government spending in the US since 1900. You don’t need to provide exact numbers, but talk in general terms about changes in the size and scope of government at all levels in the US, as well as why these changes may have occurred.
Compare and contrast in-kind and cash redistributive programs. What are some examples of each? When is each method preferable? Are there any programs that could be improved by switching to either in-kind or cash? Why?
Choose one broad area of public policy, such as education or health care (pick something different from #2 or #3). Identify and briefly explain two potential market failures. For one of the market failures, explain precisely how governments intervene to address the market failure. Or if the intervention does not address the market failure, provide a brief explanation as to why this might be.