1. Explain the revolution in economic thinking that Adam’s Smith’s ideas represented, historically speaking. In your estimation, what are the contemporary lessons to be drawn from Smith’s ideas and how may they be applied to policy?… Finally, is there a danger in using, without modification, the ideas of a man from the 18th century in the 21st century?… Explain.
2. Explain arguments both in favor and against using GDP as a measure of human welfare. . . . In your estimation, how should human welfare be measured? . . . To what extent does your analysis incorporate economic reasoning into measurement of human welfare and what does this tell us about the possible limitations of economic analysis when it comes to policymaking?
Answer each question in separate sheet and explain your answers.
