Suppose you were a benign government who wanted to improve Angela’s situation, but without sacrificing the aim of Pareto Efficiency. One policy advisor tells you that all you need to do to achieve this is to improve Angela’s reservation option. Is this correct?
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1.Suppose you were a benign government who wanted to improve Angela’s situation, but without sacrificing the aim of Pareto Efficiency. One policy advisor tells you that all you need to do to achieve this is to improve Angela’s reservation option. Is this correct?
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- Suppose you were a benign government who wanted to improve Angela’s situation, but withoutsacrificing the aim of Pareto Efficiency. One policy advisor tells you that all you need to do to achievethis is to change Angela’s reservation option. Is this correct? Please explain with all steps the awnser of this questionIf you were hired by President Rodrigo Roa Duterte to be his Economics Adviser, what is your sound recommendation to prevent online sexual exploitation.It’s the year 2050, and things are a little crazy (crazier?) in America. Sen. Shellow Bazic (Texas) – whose vote is pivotal in the senate – has sponsored a bill in the senate to require all employers in America to pay their employees with Texas Roadhouse meal vouchers. She says that at least $500 of compensation per month should be paid in this form. A $500 voucher will cost employers $500, and can be redeemed for meals at Texas Roadhouse up to a value of $500. Change will be given in further vouchers. Vouchers are not transferrable (so they have to be used by the employee themselves). You are advising the senator for Georgia, and remember that years ago you took an employee benefits class. a. estimate how cash wages will change as a result of the introduction of this program.
- The Federal Debt Reduction Commission recommended that both mortgage-related subsidies and tax breaks from the federal agencies that help middle- and lower-income families buy homes be scaled back or eliminated. The Obama administration has proposed taking the latter step, eliminating Fannie Mae and Freddie Mac but doing nothing about the incentives and tax breaks that benefit wealthier taxpayers. Is their proposal ethical? Why or why not?Select the correct one : Q-1) President Biden wants to increase the estate tax (the tax on wealth when a person dies) from 23.8% to 43.4%. a) The increase would lead to greater tax revenue and will help poor people gain access to more social welfare benefits with no unintended consequences. b) The increase would lead to no change in revenue over time but less income inequality stemming from a fairer tax code. c) The higher tax would reduce the problem of scarcity for all working poor people. d) The increase would be an economically inferior solution to reducing income inequality. In fact, lower taxes – even on the rich - tends to help the poor more. e) B and D only.What are the differences between orthodox economic liberals (OELs) and heterodox economic liberals (HELs)? How do their policy prescriptions typically vary?
- You must show your work or you may not get credit. You are the economic advisor of the ruler of Pongo. Suppose the people in the country of Pongo loves eating worms and pine cones. The price of a worm is $2 and the price of a pine cone is $6. As this land is ruled by the super awesome and awesomely benevolent Dr. Lee, he ensures all people have $24,000 each day to spend on worms and pine cones. All the people have the same marginal rate of substitution for worms and pine cones which is presented below: MRS = [MU(Worms)/MU(Pine Cones)] = 4(Qw/Qp) Please help the super awesome leader make his people as happy as possible subject to the information provided above. Specifically, how many worms and pine cones should each person eat per day? [Hint: Maximize happiness subject to budget constraint.]To address the immediate impact of the coronavirus crisis, Mr Biden has vowed to spend "whatever it takes" to extend loans to small businesses and increase direct money payments to families. Among the proposals are an additional $200 in Social Security payments per month, rescinding Trump-era tax cuts and $10,000 of student loan forgiveness for federal loans.Mr Biden's broader economic policies, dubbed his "Build Back Better" plan, aim to please two constituencies that traditionally support Democrats - young people and blue collar workers. He supports raising the federal minimum wage to $15 (£11.50) an hour - a measure that is popular among young people and that has become something of a totem figure for the party in 2020, and a sign of its move to the left. He also wants a $2tn investment in green energy, arguing that boosting green manufacturing helps working class union workers, who perform most of those jobs.There is also a $400bn pledge to use federal…Consider an economy that lacks any safety regulations. After a review of various incidences of workplace injuries, the government in this economy concludes that workers may not be optimally choosing jobs based on wages and safety. That is to say, workers seem to be accepting jobs that don't pay a high enough wage given the level of safety (or, put another way, jobs that aren't safe enough given the wage paid). This government is open to implementing new policies that would help workers make more optimal wage-safety choices. However, it strongly prefers avoiding the implementation of safety regulations on employers. For each of the following underlying causes of the wage-safety issue, describe a potential policy that could help resolve it. Given this government's aversion to implementing safety regulations, use "safety regulations" as a policy response to only one of these causes. a) Imperfect information among workers b) Imperfect competition between firms c) Workers experiencing the…
- The Federal election is just around the corner. The competition between the two candidates, Sam and Jenny , is fierce. As a consumer (and Australian voter), you only care about public transportation and child care. Let public transportation be good X and child care be good Y . Each trip in the public transportation costs $10 and each day of child care service costs $100. Your after-tax income is $500 per week. Assume that you always consume a positive amount of both X and Y (also known as interior bundles). Your utility function is given by: U(x, y) = αxβ + 2y + 1 Write down the MRS in terms of α, β, x, and y Draw two indifference curves. Do the indifference curves have the same slope along any vertical line (when x is held constant)? Illustrate and explain. Is it possible to establish whether Y is a normal or inferior good? Explain. Based on your answer in part (c), is the price elasticity of Hicksian demand for Y greater, smaller, or equal to that of Marshallian demand?…Consider a government that raises money in a two-good economy by taxing good 1 at a rate of t per unit. The government is considering replacing these taxes with a lump-sum tax to the consumer that raises the same revenue. Thus, if the consumer consumes x units of good 1 before the change in taxes, she must pay the government a lump sum of tx after the change. Suppose, moreover, that prices change only by the amount of the tax; i.e., if prices are (p₁+t, p2) before the change, then they become (P₁, P2) after. Let x = (x1, x₂) be the consumer's demand before the change, and x' (x1,x2) the consumer's demand after. Suppose that x = x'. = (a) Is one of x or x' revealed preferred to the other (and if so, which)? (b) Assuming that the consumer's demand satisfies the Weak Axiom of Revealed Preference, does the change in taxes lead to an increase or decrease in consumption of Good 1, or is it impossible to determine? What about Good 2?President Clinton has seized the cigarette excise tax as an expedient and politically correct means of increaseing federal revenue. In 1994 the federal government took in $12 billion from the present 24-cents-per-pack tax. If the tax were quadrupled to $1 a pack, Clinton figures tax revenues would increase by more than $50 billion over three years. Those added revenues would help finance the heath care reforms the president so dearly wants. Professor Gary Becker, a Nobel Prize-winning economist at the University of Chicago,says Clinton math is wrong. The White House assumed that cigarettes sales would drop by 4 percent for every 10 percent increase in prices, not the full adjustment of smokers' behavior. Over a three-year period, cigarette consumption is likely to decline by 8 percent for every 10 percent increase in price-twice as much as Clinton assumed.As a result,the $1-a-pack tax will bring in much less revenue than President Clinton projected. According to Professor Becker, by…
