Article: The Armchair Economist Economics and Everyday Life by Steven E. Landsburg
1. What does Landsburg assume regarding transportation /moving costs in his discussion about living in Lincoln, Nebraska or San Francisco, California? Why is that necessary in explaining why all cities must be equally attractive, all things considered?
2. “All jobs must be equally attractive.” Explain. What adjusts to make sure this is true? Is this idea perfectly realistic? What complications are there?
3. Owners of “fixed supply resources” can avoid the indifference principle. How?
4. According to Landsburg, why do farmers lobby to get paid to keep farmland vacant, but motel owners don’t lobby to get paid to keep rooms vacant?
5. What assumption about people’s preferences is necessary for the line at the aquarium to be exactly 45 minutes long?
6. Does the entrance fee change the attractiveness to the average citizen?