- The demand for labor is said to be a “derived” demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor?
- What are some of the factors that determine the supply of labor in a market? What significant factors have changed the supply of labor over the last twenty years?
- How does a firm determine its prices and the quantity of labor required in the resource market during a specific period?
- Why do income inequalities exist? How are income inequalities measured? How have income inequalities changed from 1980 to the present?
- What is the role of the U.S. government, in terms of dealing with the problem of income inequalities? What are the arguments, for and against, government involvement in this area?
- Why do nations trade? What is meant by the concept of “Comparative Advantage”? Could a nation be better off economically, if it practiced an isolation policy?
- The United States has had a significant trade imbalance for several years. What are the problems associated with having a negative trade balance? What can be done to correct the imbalance?
- How are exchange rates determined? What is the significance of currency devaluations to the home country? To other countries?
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