1. "When employees are dismissed from employment for reasons other than poor performance, unemployment benefits should replace 100 percent of their prior earnings while they are searching for a new job." Do you think this proposal is a good one? Why or why not? Would the policy influence how quickly laid-off workers would find new jobs if instituted? What impact would the policy have on the unemployment rate? (think about current events)

2. What is a trade deficit? How is a trade deficit related to the net inflow of foreign capital? Is a trade deficit bad? Why or why not?