1. Suppose that the only goods in the economy are eggs, apples and oranges. Would the market economy yield an efficient outcome without any government intervention (beyond establishing and enforcing property rights and rule of law) Yes or no? Explain

2. Suppose that the only goods in the economy are eggs, apples and oranges. Suppose that a benevolent dictator allocates all resources in the economy. Could everyone be better off in this command economy than they would be in a market economy without any government intervention (beyond establishing and enforcing property rights and rule of law)? Yes or no? Explain

3. Consider a command economy and a market economy. Assume that initially both economies are equally wealthy but the command economy grows at a rate of 1% per year and the market economy grows at a rate of 2% per year. How long will it take (approximately) for the market economy to be twice as rich as he command economy?