1- T-shirt Bobbie has a shop next to a large sports stadium. Suppose T-shirt Bobbie sells 2,000 shirts for $20 each. It costs her $37,000 per month to lease a building, rent t-shirt equipment, purchase plain t-shirts and various decals, pay herself, and employ some part-time workers to help when business is buzzing. What is her profit under this scenario?

2- T-shirt Bobbie has a shop next to a large sports stadium. Suppose T-shirt Bobbie sells 1,500 shirts for $20 each.

It costs her $34,000 per month to lease a building, rent t-shirt equipment, purchase plain t-shirts and various decals, pay herself, and employ some part-time workers to help when business is buzzing.

What is her profit under this scenario?

(Enter numbers only, no dollar sign, comma, period, or cents.For example, if your answer is $1,000 then enter 1000 as your submission; if your answer is -$1,000 then enter -1000)

3- Considering Questions 01 and 02: What does a positive profit indicate? What does a negative profit indicate?Explain what each means to the business and the consumer.

4- Read the following article:

• "Creating Jobs vs. Creating Wealth" by Dwight Lee (opens new window)(plain textlink:http://commonsenseeconomics.com/wp-content/uploads/Creating_Jobs_vs_Creating_Wealth_CSE.pdf)

After reading the article linked above, use what you learn to evaluate the following statement:

"I propose that we hire all of the unemployed people as government workers and pay half of them to dig holes and the other half to fill them back up. This way everyone who wants a job can have one!"

5- Watch the following video:

• CSE 1.9 Stossel Macro 04- Government spending jobs and unemployment(opens new window)(plain textlink:https://criticalcommons.org/view?m=JhqYncX2K)

Using what you learned in the video, evaluate the following statement:

"The unemployment rate is high and therefore it is time to stimulate the economy! I propose that we use tax dollars to pay car dealers to destroy older cars and send them to the dump. This will cause people to buy new cars which will increase economic activity and put us on the path to recovery."

6- Watch the following video:

• CSE 1.9 Learn Liberty- Broken window fallacy (opens new window)(plain textlink:https://criticalcommons.org/view?m=JR5TND7rW)

Using what your learned in the video, and taking into accountthe secondary effectsof the September 11, 2001 terrorist attacks on the World Trade Center and the Pentagon, analyze the views of economist Paul Krugman in the following statement:

"Ghastly as it may seem to say this, the terror attack -- like the original day of infamy, which brought an end to the Great Depression -- could even do some economic good....the destruction isn't big compared with the economy, but rebuilding will generate at least some increase in business spending."

[Source of the quote:"After The Horror" by Paul Krugman(opens new window)(plain textlink:http://www.pkarchive.org/column/91401.html)]