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1. Briefly describe the two basic rationales that underlie the U.S. welfare state. Identify the welfare state’s 2 largest programs, making sure you explain who benefits from these programs and how they are funded. Finally, explain why there remains such intense political debate in the U.S. over the welfare state.
2. The modern corporation in the U.S. arose in the latter stages of the 19th century. Two revolutions were important to its rise–what were they? Explain the basic internal structure of the modern corporation, making sure you comment on the board of directors, management, shareholders, etc. Explain what is meant by the principal-agent problem in the context of the modern corporation. Finally, explain why the American public has long had a love-hate relationship vis-a-vis the modern corporation.
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