Naked Economics: It Depends Essay Example

events occurred. The question arises: should the government have a larger or smaller role? The answer depends on the specific situation at hand. Amartya Sen's 1998 inquiry further highlights this economic predicament: "Three men have approached you seeking employment" (Wheelan, pg 60).

One of the three individuals is living in extreme poverty, so hiring him would improve his overall well-being. The second person has recently experienced a loss of resources but is not currently poor. The third individual suffers from a chronic health condition. As an employer, you must consider which decision would bring the most benefits to the economic society in which you reside. Should you prioritize helping the most impoverished individual, boosting the second person's self-esteem, or assisting the third person in managing their health condition? This question is difficult and subject to debate, with multiple possible solutions. One potential solution could involve hiring the person with a health condition as their condition may be critical and require immediate support.

One possible solution is to divide the shifts and wages among the three workers, which is a simple but potentially problematic approach. This division would provide some income for all workers and contribute to the employment rate, ultimately leading to increased spending. However, it should be noted that this choice is subjective rather than factual, as all three workers equally benefit the economy with their efforts. Thus, the question of who should be chosen remains unresolved.

A topic that sparks compelling debate is free trade versus protectionism (Wheelan, pg 193). Free trade ensures efficient allocation of resources and lower prices for consumers by granting equal access to all markets. However, whether this theory can effectively be

implemented remains a subject of debate. The issue of free trade encompasses various perspectives on accepting global foreign trade for cheaper prices but facing increased domestic competition versus implementing global trade barriers to protect domestic jobs.

Free trade establishes trust and camaraderie among nations, offering a preventative measure against war. However, it can also potentially incite conflict if trade relations deteriorate. Inherent to free trade is the importance of lower prices, with an imperative for a tariff-free global economy in order to sustain optimal worldwide productivity. By effectively allocating resources on a global scale, there is minimized waste and increased accessibility to reasonably priced goods for consumers.

Some economists argue that international economics is more than just improving global trade efficiency. They suggest that although cheaper prices may become more accessible, this could result in a reduction in American jobs and companies. It is clear that the USA places importance on its citizens' jobs rather than lower prices. As a result, there is no definitive answer but rather subjective opinions on whether one should be prioritized over the other. Like many economic questions, the answer often relies on various factors.