The Might Strike’s Back
Unit Description:
Students conclude this unit with a spirited negotiation pitting a successful monopoly against the Justice Department, the FDA and a labor union. In The Might Strikes Back students see that although economic institutions are created to temper the disadvantages of market operations, the (opportunity) cost of erecting these institutions often includes inhibiting entrepreneurial activity. As a result, students discover that answers to the four basic economic questions are grounded in a normative assessment of (opportunity) costs and that, by restricting market forces, society must weigh the perceived tradeoffs between the outcomes of an unfettered market with those of economic and political institutions.
Time Required:
5 - 6 days
