Economics and Social Security Essay

2130 WordsJul 7, 20139 Pages
Week 1 Homework Problems Chapter 1 18) You rent a car for $29.95. The first 150 miles are free, but each mile thereafter costs 15 cents. You drive it 200 miles. What is the marginal cost of driving the car? A) A marginal cost is the additional cost to you over and above the costs you have already incurred. Hence here the marginal cost is $7.50 26) State whether the following are microeconomic or macroeconomic policy issues: a. Should U.S. interest rate be lowered to decrease the amount of unemployment? macroeconomics b. Will the fact that more and more doctors are selling their practices to managed care networks increase the efficiency of medical providers? Macroeconomics c. Should the current federal income tax be…show more content…
To some people, government intervention in the economy are consider significant to protect against the worst elements of capitalism while others think that such regulations are unnecessary invasions of their freedoms. To what extend should the government get involve in the economy. The government should take a limited role in the economy while allowing private enterprises because such involvement would eliminate the negative aspects of capitalism while adopting the positiveness of Socialism. This would benefit the economy in variety of ways. Firstly, government regulations allow businesses to remain in the private hands while removing some of the worst abuses of pure capitalism. Secondly, a government intervention protects the consumers, producers, and the community as a whole. Finally, limited government involvement prevents crises such as inflation, unemployment and depression. The nineteenth century period was a memorable period in the history of human kind. The Industrial Revolution transformed society from an agricultural to a mechanized society. The output of production increased enormously thus creating a substantial amount of jobs. Although the economy was drastically affected by the increasing industrialization; many people were horrified at the
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