November 11, 1984

One day in May 1975, Cy Feuer and Ernest Martin - two movie producers best known for ''Cabaret'' - made an offer to Joseph Papp, the producer of the New York Shakespeare Festival. They would pay $150,000 for the film rights to his new musical. No matter that the musical had not opened. No matter that it was only in previews in a 299-seat theater downtown. Insiders had already heard that this show, something about dancers called ''A Chorus Line,'' was remarkable. When Mr. Feuer and Mr. Martin had seen the first preview performance, they cried. ''And all that notwithstanding,'' Mr. Martin recalls, ''we knew it was a good property.'' Mr. Feuer and Mr. Martin got their chance to turn ''A Chorus Line'' into a movie. But only now, nine years and millions of dollars later, is the film being shot, in the Mark Hellinger Theater under the direction of Richard Attenborough. Between 1975 and 1984, such writing, directing and marketing talents as Mike Nichols, Sidney Lumet, Allan Carr, Bo Goldman and Joel Schumacher - as well as Mr. Papp and Michael Bennett, the two chief creators of ''A Chorus Line'' - failed to bring the film to fruition.

As Ronald Reagan begins a second term with what appears to be a resounding endorsement of his economic policies, what dangers lie ahead? Four of the nation's prominent economists, each representing a different school of thought, were asked how they would counsel President Reagan as he prepares for the next four years. Martin S. Feldstein A mainstream conservative, professor of economics at Harvard, director of the National Bureau of Economic Research and chairman of President Reagan's Council of Economic Advisers from September 1982 to July 1984. ''What worries me is if we don't get action on the budget deficit we'll get a sharp, spontaneous fall of the dollar and a loss of confidence by the financial markets. Over time, this would mean we would see higher and higher real interest rates and a erosion of the process of growth. . . . The key to the deficit is getting legislation in place that provides for a steady, reliable reduction. . . . I believe it will be necessary to compromise and include additional revenues. . . . I favor the tax reform approach. . . . I also think the size of the vote means Congress will be more willing to give the President the kind of spending cuts he wants. . . . The President has made it clear he wuld use tax increases as a last resort, and I think he'll have to use that last resort.''

At first glance, the Government's consumer installment credit figures for September, due out this Thursday, will suggest that Americans are becoming increasingly hesitant about piling on debt. But that's not necessarily so, according to Joel Popkin, a Washington economic consultant. The September figure is expected to show a rise of only $2 billion or so, compared with $6 billion in August and $7.1 billion in July. ''But the decline occurred largely because of the sharp drop in auto sales that month,'' Mr. Popkin noted, ''and not because the consumer is overburdened with installment debt.'' Continuing labor problems again depressed domestic auto output in October, causing sales to fall to an annual rate of 6.9 million units, from 7.9 million in September. As a result, Mr. Popkin expects sluggish growth in installment debt to continue in October. But the trend should reverse in the final months of the year. ''The recent decline in interest rates should stimulate sales of autos and other durables normally bought on credit,'' he predicted.

O NE YEAR after the Federal Government began paying for hospice care for terminally ill Medicare beneficiaries - what one hospice director described as the most comprehenive medical benefit ever provided by the Government - only about 1 percent of those eligible for the program in New Jersey have elected it. Although this has created problems for a few hospices in the state that depend heavily on Medicare reimbursements, it has had little impact on others. However, some hospice officials believe that the biggest losers have been dying patients and their families, who either were unaware of or misunderstood the benefit. ''Those who benefit most from the new program,'' said Clark Dingman, director of the Hospice of Burlington County in Moorestown, ''are people who have spent their life's savings on aggressive treatment for their disease or those who have very limited resources and no insurance besides Medicare.'' Medicare patients who do not use their hospice benefit still can receive hospice care under Medicare's traditional plan, which, like most other medical insurance, covers some, but not all, hospice services. Patients or the hospice - most receive some philanthropic funds - then must pay for services and supplies that are not reimbursed.

An 82-year-old carousel that is a designated landmark on the National Register of Historic Places has been moved, in pieces, to a Brooklyn warehouse from its site in Youngstown, Ohio. Bought at auction for $385,000 by David Walentas and his wife, Jane, it will be reassembled on the Brooklyn waterfront only if Mr. Walentas can procede with his stalled proposal for a $159 million office, retail and entertainment project at Fulton Landing just north of the Brooklyn Bridge.