1995 and 2000 Macro Answers

Here are the answers to the 1995 and 2000 AP Macro Exams.  Check them over and come to class with questions.

1995 Answers with Explanations

2000 Answers with Explanations

To trade or not to trade...

In class, we discussed the numerous methods in which trade barriers are implemented.  To what extent do trade barriers contribute to or hinder economic growth?  You are to conduct further research on the issue of trade barriers vs. free trade before responding to the questions below. In addition to explaining your point of view, please include a link to a website that supports your argument.

1. Do trade barriers help or hinder economic growth?
2. Use one of the arguments from the textbook to make the case for or against protectionism.
3. Should politics play a role in the trade barriers vs. free trade discussion?  Explain.

Time to Legalize Pot?

As the Federal Government and State Governments around the country seek additional sources of revenue, a decades-long debate has become the apparent panacea... Marijuana.  No our elected officials are not smoking pot as they debate fiscal issues (hopefully not).  Many are considering the legalization of pot due to the various Economic benefits it can provide.  Are these just the senseless ramblings of "stoners," or is there legitimate Economic rationale for the legalization of pot.

http://freakonomics.com/2014/01/10/who-does-marijuana-legalization-hurt/

http://www.forbes.com/2005/06/02/cz_qh_0602pot.html

http://www.economist.com/news/leaders/21593455-how-tax-and-regulate-marijuana-bongs-and-bureaucrats

http://www.huffingtonpost.com/ranjit-dighe/legalize-marijuana-economic-argument_b_4695023.html

Where do you stand on the issue?  Should marijuana be legalized?  Read the 4 articles linked above and use them to answer the following questions.

1. Explain the strongest argument in favor of legalizing marijuana?
2. Explain the strongest argument against the legalization of marijuana? 
3. Why does Milton Friedman think marijuana should be legalized?
4. Where do you stand on the issue?  Defend your position and be sure to include relevant arguments cited within the articles.  You may also provide additional arguments that are not discussed in the included links.

The Debt Ceiling

Like Bill Murray reliving Groundhog Day over and over again, it seems that the Debt Ceiling debate has once again returned to rear its ugly head.  It seems like only last year that congress settled the dispute over the growing government debt... oh wait... it was last year.  Unfortunatly, the legal debt limit is fast approaching and congress must once again decide how to deal with the problem.  As is ususally the case with terrible problems that could potentially ruin the United States as we know it, there is no clear-cut solution.  Republicans and Democrats view the Debt Ceiling (and those to blame for it) very differently.

Read through the articles below and answer the questions that follow.


http://www.treasury.gov/initiatives/pages/debtlimit.aspx
http://online.wsj.com/article/SB10001424052702303796404579097013297326356.html
http://www.nytimes.com/2013/09/27/us/politics/house-gop-leaders-list-conditions-for-raising-debt-ceiling.html?_r=0
http://tv.msnbc.com/2013/09/25/raise-debt-limit-before-october-17-or-risk-default-treasury-warns/
http://www.nbcnews.com/business/warren-buffett-debt-ceiling-fight-would-be-damn-dumb-4B11210658

1. What is the Debt Ceiling, and what are the dangers if a solution is not reached.
2. How do Republicans want to deal with the Debt Ceiling?  How about Democrats?
3. Which political party do you believe has the better view of the Debt Ceiling?  Explain.

Hayek vs. Keynes 2013

 

 

"To act on the belief that we possess the knowledge and the power which enable us to shape the processes of society entirely to our liking, knowledge which in fact we do not possess, is likely to make us do much harm."

                                                          -F.A. Hayek

"Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone."

                                                       -John Maynard Keynes

Who would have thought that the ideas of these two economists would still be relevant over 100 years after ther they were born?  Furthermore the central arguments are still being discussed today on Television and in the newspapers.  What exactly is the role of government: a dangerous servant or a fearful master?  Should markets drive the economy, or should government drive the markets? 

Where do you stand on the issue?  What are the best reasons to support your side? Identify the main flaws in the opposing argument.  In addition to posting your opinion, you will also be responding to one of your classmates' posts.

Check out the articles below as you develop your arguments.

http://welkerswikinomics.com/blog/2011/10/31/keynes-versus-hayek-101-the-debate-continues/

http://www.soundmoneyproject.org/?p=2085

http://www.reuters.com/subjects/keynes-hayek - Watch the Debate!

http://online.wsj.com/article/SB10001424052748704738404575347300609199056.html



                       

Trade Barriers Debate

First off, I hope I don't get sued for using Gandalf on my blog.  In class, we discussed the numerous arguments for and against trade barriers and free trade.  We all know how Gandalf feels about free trade, but where do you stand?  To what extent do trade barriers contribute to or hinder economic growth?  I would like you to conduct further research on the issue of trade barriers vs. free trade before answering the question.  In addition to explaining your point of view, please include a link to a website that supports your argument.

A World Without Cash?

Is cash still important in our society today to buy the things we want, or is it an antiquated tool that is losing relevance in an increasingly technological world?  Many argue that a cashless society is in our future while some say it is impossible (and dangerous) to live in an entirely digital society.  Where do you stand on the issue?  Can we really have a society without cash and where are the potential pitfalls?  Read the following articles in order to see the various views on the topic before defending your position.

http://online.wsj.com/article/SB10001424052970204136404577209241595751130.html 
http://www.nytimes.com/2011/07/07/business/07currency.html?_r=0
http://articles.businessinsider.com/2012-04-24/news/31391046_1_smartphones-privacy-fears-paypal
http://knowledge.wharton.upenn.edu/article.cfm?articleid=3017
http://www.fee.org/the_freeman/detail/toward-a-cashless-society/#axzz2K1R0K7z