1) There is an ongoing debate about whether free trade is beneficial for the global economy. Choose whether you support free trade or if you prefer trade barriers. Be sure to cite specific facts and figures to support your analysis. Remember that there may be more than one perspective that could be equally valid given the circumstances.

Use your own words - Be sure to reference your sources.

2) (a) Suppose an increase in air pollution causes capital to wear out more rapidly, doubling the rate of depreciation. How would this affect economic growth?

b). Some people worry that increases in the capital stock will bring about an economy in which everything is done by machines, with no jobs left for people. What does the model of economic growth presented in this chapter predict?

c). China's annual rate of population growth was 1.2% from 1975 to 2003 and is expected to be 0.6% from 2003 through 2015. How do you think this will affect the rate of increase in real GDP? How will this affect the rate of increase in per capita real GDP?

D). Suppose technology stops changing. Explain the impact on economic growth.

e). Suppose a series of terrorist attacks destroy half the capital in the United States but does not affect the population. What will happen to potential output and to the real wage?

f) "Given the rate at which scientists are making new discoveries, we will soon reach the point that no further discoveries can be made. Economic growth will come to a stop." Discuss.