Econ 201 Questions

1.Outline the key features of a modern capitalist system.Can capitalism be said to be evolving?

2.Explain the difference between financial resources and real resources.

3.Define what is meant by black-market activity and provide some examples.

Why do you think that the Italian statistical agency announced in late 2014 that black market activities would be included in its estimate of GDP?

4.Why is GDP considered a limited measure of societal well-being and progress? Use three examples to illustrate.

a.Describe two measures that have been developed to address some of the limitations of GDP. You will probably need to use Google to find the information.

b. List some of the components of these measures that represent an improvement in measuring societal well-being and progress compared with just relying on GDP per capita.

5.By considering the definitions of employment and unemployment, explain why it could be argued that the level of employment would tend to be overstated, whereas the level of unemployment would tend to be understated.

6.What options does the private sector have when faced with a persistent financial deficit? a.Is this situation sustainable? Why or why not?

7.We have discussed the differences between the mainstream and heterodox perspectives of money and banking. We have also been introduced to the idea that the modern economy is a set of interconnected balance sheets. What are the implications of misunderstanding how money and credit work in a modern capitalist economy?

A. Third party candidate M. Bobinson has surprised everyone by being elected President of the United States in November 2020. He is charismatic but knows very little about economic policy. Luckily, you’ve been placed in charge of his economic policy team. What are your economic policy recommendations to him? These should address short-term needs during the COVID crisis. Explain WHY you’re recommending these policies.