Db 1.
Do some research on the country of Ethiopia and discuss:
a. Who in the Ethiopian society has the most difficult time dealing with scarcity?
b. What do they need most?
c. How can their society provide for their wants and needs?
d. Why are they so impoverished?
e. What can their governments do to help, or hinder their country’s development?
f. Could Ethiopia become a world-class producer and exporter of goods? How would Ethiopia compare with Japan? Japan is a country relatively POOR in natural resources, yet it is an economic world powerhouse. What are the differences between the two countries?
DB 2.
There is much discussion in the press about several states moving to legalize cannabis, either for medical use or for recreational purposes. Looking only at the economic impact of such changes in the laws, discuss how the existing system of supply and demand for illegal cannabis will be changed with the new legalization.
a. What will happen to existing supply avenues?
b. Will legalization significantly change demand? How?
c. Would one expect prices to change significantly? How?
d. What would be the costs and benefits to governments, both in changes in enforcement requirements and in potential tax revenue?
DB 3.
1. Pretend that you have just been surprised with a genuine email that says you have just been selected by your favorite pizza delivery company that every day for the next month you will receive your favorite pizza for lunch and another of that same favorite pizza for dinner, delivered to your home and ready to eat.
a. Using the concept of diminishing marginal utility, discuss how excited you will be on the first day of your winning.
b. What about your excitement on the 10th day?
c. What about your excitement on the 30th day?
2. Now, pretend that your favorite national brand gasoline company informs you that you have won as much as you want free gasoline, as much as you want, from any of their gas stations, anywhere in the country every day for a year.
a. Using the concept of diminishing marginal utility, discuss how excited you will be on the first day of your winning
b. What about your excitement on the 10th day?
c. What about your excitement on the 30th day?
3. Again, considering the concept of utility, what makes these two scenarios different?




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