1. Irrespective of economic conditions, we consume many services and goods in various quantities. There is a constant re-allocation and allocation of resources. Discuss how does this happen? Explain what economic mechanism helps allocate resources to the preferences of hundreds of millions of people?
2. In light of the underground economy, and the other shortcomings of using GDP as a measuring rod, do you think the government should include estimates of the underground economy in its GDP calculations? Explain the pros and cons.