1.Use economic theory to predict when the world will run out of oil.

2)Justice Defined - fulfillment of legitimate expectations.

* Paul Heyne(Note: Heyne did not have a degree in economics, but a Doctorate of Divinity from the University of Chicago. He devoted much of his life trying to define justice.)

Justice Example: Society (because of the use of taxes) and your parents have a legitimate expectation that you will study in school and graduate from high school, etc.

Unjust Act Example: Not washing one's hands after using the bathroom.

Legitimacy: Society determines what is legitimate via its institutions.

=> How would you define "justice?"Comment of Heyne's definition.How does your definition compare to Heyne's?(Make sure that you define all terms that you use in your definition.)

3.Ethics deals with morality and I would contend that capitalism is an amoral economic model!(Amoral means without morals, neither good nor bad.)

What do you think about this statement?Please briefly comment.

What about other economic systems, say socialism?Do you have the same answer?

4.Marginal analysis and decision-making:

Concept: The Fundamental Assumption of Economics

All social phenomena emerge from the actions and interactions of individuals who are choosing in response to expected marginal benefits and expected marginal costs to themselves.

• Definition: Marginal is additional or incremental (amount of increase) or decremental (amount of decrease).
• Should I do (choose) activity x?
• MC(x) = the additional costs of doing x
• MB(x) = the additional benefits of doing x

Rule:

• If Expected MB(x) > Expected MC(x), do x; otherwise don't.

Application:

Would an employer ever hire anyone if the expected additional cost of his or her employment were greater than the expected marginal/additional benefit?Of course not, to do so would be irrational.

Assumptions:

In economics, we assume rationality. No one would intentionally harm themselves.

Do businesses have the ability to measure costs? Marginal costs?

How would you use this concept to determine when to get married?

How many dates show you go on to decide when to marry someone?Does the 18th date provide as much additional information as the 1st date? (Remember diminishing marginal returns.)