On his blog, Mankiw linked this profile of George Akerlof, a Nobel Lauriat in Economics: http://gregmankiw.blogspot.com/2011/06/george-akerlof.html 5. What topic has motivated Ackerlof the most in his academic career? Why does he care so much about this?

6. Explain how Ackerlof argues most people's concept of fairness makes real-world outcomes differ from the outcomes the traditional supply and demand model would predict.

7. Describe Ackerlof's view of what the proper role of the government in an economy is. Would you describe him as a laissez-faire libertarian who wants the smallest possible role for government, or a democratic socialist who wants a much more active role for government, or something in between? Explain.

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https://www.youtube.com/watch?v=d6vjrzUplWU 8. What does Friedman argue you are really trading when you go to the store to buy a pencil?

9. What does Friedman argue brings thousands of people together to cooperate to produce a pencil, people who normally might not like each other or speak the same language?

Here is another video from the great library of videos available online at Marginal Revolution University. These are all provided by Tyler Cowen and Alex Tabarrok, the two economists who teach at George Mason University and curate the excellent Marginal Revolution blog. This video is on the concept of equilibrium.

https://mru.org/courses/principles-economics-microeconomics/equilibrium-price-supply-demand-example

10.In the market shown, if the price is $15 will there be a surplus, a shortage, or is the market in equilibrium? What will happen to price in this case? 11. What does the video say is true about how the value to buyers compares to the cost to sellers for every trade except the very last one at equilibrium? Hint: think about how for every trade left of equilibrium, the price buyers are willing to pay is greater than the minimum price sellers will accept. 12. What does the video say is maximized in a free market when the equilibrium price is reached??