Study Guide to Man, Economy, and State with Power and Market

66 Study Guide to Man, Economy, and State with Power and Market
Study Questions
1. How does Rothbard justify study of the ERE,
when Austrians are so critical of unrealistic
assumptions in mainstream economics? (pp.
322–23)
2. Why is the ERE not only unrealistic, but indeed
self-contradictory? (pp. 328–29)
3. How would Rothbard classify those goods that
produce second-order capital goods? (pp. 330–
31)
4. Describe the structure of production in a world
of purely specific factors. (pp. 330–31)
5. In the case of joint ownership, where the final
product is a diamond ring, arrange the following
in order of their respective waiting times to be
paid: (a) the truck driver bringing diamonds to
the jeweler, (b) the laborer in the diamond mine,
and (c) the jeweler who sets the diamond on a
ring. (pp. 334–37)
6. What is wrong with the “freedom-to-starve”
argument? (p. 339)
7. How can a sale be costless? (p. 341)
8. What is the problem with so-called “cost-plus”
pricing schemes for public utilities (in which the