Question from Past Microeconomics Qualifying ExamEdit
Fall 2003 - Section II, Question four, George Mason University
Give complete answers to three of the following four questions (about 25 percent each). Once again write clear, concise and legible answers.
It is sometimes argued that since future generations are not in any position to cast dollar votes (or for that matter any other votes) in influencing the saving-investment decisions of the current generation, there will be under-provision of the eeds of the future because of "selfishness" on the part of the current generation. The rapid exploitation and even destruction of our natural resources is often cited as evidence for this contention. On the other hand, there is the indisputable evidence that each successive American generation has been left richer, in terms of capital goods, than its predecessor.
Comment and include the reason why present generations enrich future generations.