Please write three short essays — approximately 1 page double spaced per question — in answer to the each of the following three questions:
1. Describe Adam Smith’s three basic functions of government. Is his list complete? Or are there more functions for government? Briefly describe and explain.
2. Explain why economists use models to analyze economic issues. What are the characteristics of a useful economic model?
3. Do private commercial banks create money? Explain why or why not
