“The institutional environment is the key to economic growth. If a nation creates an environment conducive to economic growth, people will supply and develop the resources and technology.” Evaluate this view. Is the proper economic environment more important than the supply of resources? Why or why not?
*12. The diversity of goods available to consumers today is much greater than in the past. How does this influence consumer welfare? Do the GDP growth figures capture the impact of the increased diversity? Why or why not?
*13. When the government is heavily involved in the regulation of markets, how will this influence the gains from trade? How will it influence the degree of rent seeking by business and labor groups and the campaign contributions available to politicians?