Microeconomics

Assignment type Coursework / Assignment
Discipline Economics
Description $15.00 PRICE IS NON NEGOTIABLE 2 Requirements: – Double spaced – 6 pages Politicians are often heard saying that tuition at state universities should be kept low “to make education equally accessible to all residents of the state, regardless of income.” 1. Assuming that state funding for the universities is held constant, describe the conditions that will prevail if tuition is held below equilibrium price. Provide one (1) example to support your response. 2. Will education really be “equally accessible” under these conditions? Provide one (1) example to support your response. Part B Using the Internet, research the influenza vaccine, or “flu shot.” Use the following to guide your research: a. Think about the flu shot in the context of a public good. b. What are the economic benefits of the flu shot? c. In what ways has the government become involved in the distribution of flu shots? For what reasons? 1. Describe one (1) reason why the private market for flu vaccinations would produce an inefficient outcome. 2. Describe one (1) way that government involvement could achieve an efficient quantity of vaccinations. 3. Provide one (1) original example for each of the following: a. a private good b. a public good. —————- Part C Imagine that it is the year 2199. Technology has progressed at an incredible pace. The latest discovery is the plutonium engine, which is capable of converting plutonium, a by-product of nuclear fission, into fuel to power the nuclear reactors in our new form of transportation, the rocket-car. However, because the firm that invented the engine, the Futures Unlimited Corporation, already has a government license to control and distribute the quantity of this certain isotope of plutonium on the market, it is now conceivably in charge of a monopoly on plutonium-fueled transportation. 1. Describe the economic outcome of this single-price monopoly in terms of profit. Provide one (1) supporting fact to support your response. 2. Describe one (1) way that the Futures Unlimited Corporation makes output and price decisions. Part D 1. Would consumers benefit more from a tariff or a quota on imports? Provide one (1) supporting fact to support your response. 2. Consider the following weekly production possibilities of gloves and hats in Panama and Russia: Russia Panama Gloves 20 180 Hats 80 90 a. What is each country’s opportunity cost of producing gloves and hats? b. If the countries could, should they trade? Provide one (1) supporting fact to support your position.