Indiana Wesleyan University eco330 workshop 5 questions

 

1.                            You have been selected as the CEO for a fast-food company. Answer the following questions in regard to your new role:

a.            What are some of the externalities that you would experience in the fast food

business? Explain.

b.                            How might you handle claims that your fast-food is causing obesity among your patrons? Explain.

c.             Should you be concerned about how the financial viability of the firm could be

overrun by dealing with externalities? Explain.

 

2.            In Question #1 above, your first move as CEO is to develop recyclable packaging for your fast-food products. Answer the following questions in regard to such a move:

a.            What are the positive externalities that would emerge from your recyclable

packaging?

b.            How could you translate these positive externalities into a competitive advantage for your firm?

c.             Would such actions possibly lead to increased customer loyalty because of these

actions?

 

 

3.            The U.S. has many treasures that warrant their protection, such as the Great Lakes, the nation’s coastal wetlands, and the Smoky Mountains.

a.            Explain why simple cost-benefit analysis involving public goods such these are so

difficult to undertake.

b.            Should public policy overrule pure economics in these situations? Explain.

 

4.                            One key role for the public sector is educating the nation’s children to prepare them for a productive life. Answer the following questions in regard to the country’s educational endeavors:

a.            Explain the role that education plays in preparing students for the information

economy.

b.            How does the information economy differ from the nation’s agricultural and industrial economies of the past?

c.             Is the nation’s educational system meeting the demands of the new information

economy, if so why? If not, why is the system failing?

d.            How will the success of our educational system affect the economy and quality of life in the future? Explain.