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1. Why would division of labor without trade not work?
2. Can you think of any examples of free goods, that is, goods or services that are not scarce?
3. A balanced federal budget and a balance of trade are secondary goals of macroeconomics, while growth in the standard of living (for example) is a primary goal. Why do you think that is so?
4. What assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world?
5. Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but do they have special expertise to judge whether or not the policy should be undertaken?
