1. Rousseau says that “property is the most sacred of all the rights of citizenship.” What do you think he means by this? Why might property be the most important right of a citizen?
2. Why does Rousseau say the people cannot govern themselves without rulers?
3. Do you think it is true that “every government constantly tends to become lax,” meaning relaxed, inefficient, or lazy? Does your own attitude about the government match Rousseau’s observations?
4. Interpret the following line: “And it may justly be said that a government has reached the last stage of corruption, when it has ceased to have sinews [strengths] other than money.” What other government strengths might Rousseau be referring to?
5. Throughout the essay, Rousseau alludes to society’s confidence — or lack thereof — in its ruling government. According to the passage, what is the primary reason for citizen mistrust in a government? How might a government avoid losing the trust of its citizens?
6. What is the difference between progressive and regressive methods of taxation? Explain.
7. Identify actions a government can take to protect its domestic industries. Describe the effects that these actions have on domestic consumers.
8. Describe the difference between public goods and private goods. Explain why government action is necessary to ensure the provision of public goods.
9. What does the government do to protect competition in a free-market system? Explain why the government needs to take these actions.
10. How can censorship negatively affect economic activity?
11. Define comparative advantage, and explain how a country gets a comparative advantage in the production of a certain good.
12. Explain why globalization is increasing the gap in income, wealth, and economic growth that already exists between developed and developing countries.
13. What is the purpose of the WTO? Explain one positive effect and one negative effect the WTO’s operations can have on member countries.
14. Describe how the globalization of production leads to environmental damage.
15. Explain why the high-tech and textile industries in the United States are facing continued job losses.
16. What is included in a personal budget? Why is a personal budget a useful tool?
17. What are the main costs associated with higher education? Why might the financial burden of college actually be economically worthwhile?
18. Choose one type of insurance. Explain what it is and why it is useful or necessary.
19. How are debit and credit cards similar? How are they different?
20. What does it mean to be a socially responsible consumer? Use an example to support your explanation.
21. Describe the circular flow model of the free-market system.
22. How do consumers use cost-benefit analysis? Why do consumers make different decisions using this process?
23. Name two different market structures. Describe how and why they each have a different competitive situation.
24. What is the Law of Supply and Demand? Explain how increases and decreases in supply and demand affect prices.
25. What is the business cycle? What causes changes from one phase of the business cycle to another?
26. Explain the different investment options someone with a high level of risk aversion might choose. What are the possible investment goals for this person?
27. What are tariffs? What are some of the harmful effects of tariffs?
28. Give an example of a public good and describe why it’s a public good. Should the government provide this good? Why or why not?
29. What is globalization? Why does globalization benefit some countries more than others?
30. There are a number of organizations designed to regulate the global economy and assist individual nations in the global economy. List and describe two such organizations.