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Economics > ESSAY > University of Arizona: PPEL 205 – second exam. Questions and Answers. Graded A (All)

University of Arizona: PPEL 205 – second exam. Questions and Answers. Graded A

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PPEL 205 – second exam Answer 3 of the following 4 questions, using about 500 words for each question. You are not permitted to work in groups, and you should abide by the honor code. You shoul ... d cite all sources, including authors from class and web URLs (question 4 is the only one that would be worth consulting outside sources to answer). No bibliography needed. Due 4/4 at midnight. Submit electronically on D2L. 1. Suppose I’m a member of the Arizona Student Government, and I propose that we turn the quad into a water slide park offering free admission to the entire Wildcat community. Before making this proposal, I poll Arizona students and find that 90% of them would gladly use the waterpark. Is the current failure of the market to supply free water slides to Arizona students an example of market failure? Why or why not? 2. Economists measure efficiency with one of two criteria: Pareto or Kaldor-Hicks. What are some of the moral and conceptual problems with using the Pareto standard of efficiency for measuring social welfare gains? 3. There are a bunch of ways public goods can be supplied. Consider a case in which you think it would be better for governments to finance and directly provide a public good, and a case in which you think they should finance but not directly supply a public good. Explain in your own words (and using your own examples) what the advantages and disadvantages are for these two cases of using government to directly produce vs finance and indirectly facilitate the emergence of the public goods in question. 4. When the Affordable Care Act (AKA “Obamacare”) was passed a few years ago, the President’s advisers said it would save money and lead to lower costs for consumers. Why would they say this, and why do you think this prediction did not come true? (Note: I am not interested in your political views – you could easily support the ACA but think that increased costs are worth it to finance expanded coverage, or you could oppose it. I’m more interested in your ability to frame a real issue in terms of the concepts you’ve learned. All of the relevant concepts are in Friedman, though considerations in the Anomaly article in the section on insurance markets might also help). [Show More]

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