Explain how economists treat self-interest as a universal motivator. What experiments have we done to illustrate this phenomenon. Does self interest mean money?
The Wharf to Wharf race in Santa Cruz has a cap of 16,000 runners. Many more than 16,000 people would like to participate. Given that the race is a charity, the price they charge for a bib is $45. These sell out in under 30 minutes to the frustration of many people. Recommend some allocation methods and discuss the economic efficiency implications of each. You could also discuss fairness issues as well and how they might be pitted against each other. For example, would a lottery be a good mechanism? (examples include first-come-first-served, auctions, cronyism, nepotism, a lottery, strength)
Many Americans do not have sufficient savings for retirement. At the same time, the Federal government is facing a rapidly depleting social security fund. What policies should the government enact in order to solve the problem of insufficient retirement savings. Do you think the government should not be in the business of addressing this at all?
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