Homework 3
Due Thursday 2/2
1. What is the role of the state according to Adam Smith? What makes for good taxes?
2. According to Adam Smith, what is the difference between the market price and the natural price? Why is this distinction important?
3. According to Smith, why do wages differ across occupations? What was he trying to explain by making this distinction?
4. Explain Malthus's theory of gluts. What policy conclusions did Malthus draw from the analysis?
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