What is David friedman's endowment effect?
For unlimited access to Homework Help, a Homework+ subscription is required.
1. Speeding
a) Give one argument for making the fine for speeding proportional to income.
b) Give one argument against making the fine for speeding proportional to income.
2. Equality before the Law
In principle, for US citizens in US courts there is equality before the Law. In practice, however, richer individuals can afford to allocate more resources to preparing and presenting their cases, including hiring more talented lawyers, with the result that they are more likely to win their cases.
What do you think David Friedman's (the book's author) opinion would be about the "fairness" of this reality?
Comment on the following statement: If a business is making money and paying the stockholders, it doesn't really matter if its practices are ethical as long as they do not violate any laws.
To assist you in your response, you might want to read Milton Friedman's "The Social Responsibility of Business Is to Increase Its Profits."
Ivan Pongracic explains how the Fed may have been responsible for prolonging the Great Depression. Read the article on this website http://www.fee.org/the_freeman/detail/the-great-depression-according-to-milton-friedman. Explain Milton Friedman's theory about the cause of the Great Depression. How does this impact your understanding of what policy solution would have been best to get the economy going again?
