Question 1:

Thomas Sowell is an Americaneconomistandsocial theoristwho is currently asenior fellowatStanford University'sHoover Institutionsaid once, there are no solutions, only tradeoffs. Can you think of any examples?

Question 2: Explain, how you understand this statement: Economics is the study of how to get the most out of life. How would you answer this question: How do you get the most out of life?

Question 3: People on social mediawere outraged by price gouging during Covid-19. They posted pictures showing stores charging high prices, like $19.99 for a can of Lysol spray and $22.99 for a 12 oz bottle of Purell. We're encouraged to report such high prices to the government because "gouging" is illegal. New York has an online "price gouging complaintform" that people can fill out if they are charged "unconscionably high prices."

Should price gouging be illegal? If yes, then identify tradeoffs and opportunity costs if price gouging is prohibited.

Question 4:Paul Krugman is an American economist and Nobel laureate. He is also an op-ed columnist and blogger for theNew York Times.

In June 2011, Paul Krugman declared that a new war would solve the nation's looming economic problems:"If we suddenly had a threat of war and a military build-up, you'd be amazed how fast the economy would recover."

1. Evaluate Paul Krugman's statement.
2. Can we expect to see some long-term beneficial consequences from COVID-19 and its associated hysteria (mandatory business closure, social distancing, etc.)?