Respond to this discussion

Explain if the founders of the U.S. Constitution supported direct democracy or not?
The founders of the U.S. Constitution did not support direct democracy. Instead, they believed in representative democracy or as they liked to call it, representative republic. "In a representative democracy, the will of the majority is expressed through smaller groups of individuals elected by the people to act as their representatives. These representatives are responsible to the people for their conduct and can be voted out of office" (Sidlow, Govt 9). It should be noted that the founders did not believe in having a king or queen, which is why they preferred the term representative republic vs representative democracy.

Part A Product X has the following demand and supply functions:

Qd = 30 – 2p

Qs = -10 + 6p

The government does not currently place indirect taxes on Product X. The production and consumption of Product X, however, is considered to be undesirable. The government subsequently places an indirect tax on the product which creates a producers price of $4. Product X also has a coefficient of income elasticity of +2 Use the above information to :

Draw a demand and supply graph illustrating the market for Product X both before and after the imposition of the indirect tax.

Calculate the tax per unit and total tax collected by the government.

Calculate and explain consumer surplus, producer surplus and deadweight loss before and after the imposition of the indirect tax.

Calculate the price elasticity of demand for Product X (use the arc method to calculate elasticity)

Calculate and explain the burden of the tax.

Discuss the relationship between the burden of the tax and the coefficient of elasticity calculated in part iv.

­ Part B

The government increases direct (income) tax by 10% and this decreases average disposable income by 3%.

Use the above demand and supply functions as a guide to discuss the impact of this policy on the demand for Product X.

Explain whether the government is likely to reduce indirect taxes or increase direct taxes in order to discourage the consumption of Product X.

Question 2 ­Small Scale Solar Power Energy The average price of a 4KW solar panel system is approximately $4500 in Victoria.

The Victorian Government has introduced the “Solar Homes Program” which provides eligible households with a government rebate of approximately $2300 to install a home solar system.

This rebate is paid to the installer of the solar system. Households with solar panels can, in addition, receive a feed-in rebate (or cash return) of approximately 12 cents per kilowatt hour for any unused solar energy which is returned to the state electricity grid or supply. Use the above information to:

Discuss the market failure evident in this industry. Your answer should include a discussion of the most significant economic concepts relating to this market failure. Concepts that should be included but not limited to are: allocation of resources, type of externalities, corrective measures by the government, how market failure arises.

Draw a graph for the market for solar systems and energy which demonstrates and illustrates the market failure discussed in part (i) and the intended effect of the government policy outlined in the above question.

Discuss and graphically illustrate how the above government policies are likely to affect the market for non-renewable sources of electricity, such as coal fired power (fossil fuels).

In your answer you should identify two relevant conditions (determinants) of demand and two relevant conditions (determinants) of supply in the market for non-renewables.

1. Evaluate this regression with respect to its economic meaning, overall fit, and the signs and significance of the individual coefficients. What econometric problems does this regression have? Explain. Suggest possible remedies.

A modern consumption function is estimated using quarterly data for 1959:2 to 2000:4, a total of 166 observations.

Consumption Real Personal Consumption Expenditures (Billions of 1996 dollars)

Income                        Real Disposable Income (Billions of 1996 dollars)

Sentiment       Index of Consumer Sentiments (1966q1=100)

RealR              Real 3 Month Treasury Bill rate (percent)

Wealth            Household net worth (Billions of dollars)

Suppose that domestic risk-free rate is 5% annually, and foreign risk free rate is 6% annually. Spot exchange rate between domestic currency and foreign currency is 1:1. (a) According to uncovered interest rate parity, which currency is expected to worth more in one year? (b) According to uncovered interest rate parity, what is the expected exchange rate in one year? (c) According to covered interest rate parity, what is the arbitrage-free one-year forward exchange rate?

Describe key features of agricultural economics that distinguish it from other disciplines in economics and agricultural sciences

Suppose demand for dodge chargers was estimated to be represented by

Qdc = 300 - 3.0Pc - 10,000Pg + 1.75M + .2A

Where Pc is price of Dodge Chargers, Pg is price of gasoline, M is consumer income and A is cost of advertising.

A. If Dodge was selling 150,000 Chargers at $30,000, what is the own-price elasticity of demand?

     How much would quantity demand change if price was reduced to $26,000? What would happen to revenue?

B. If Dodge was selling 150,000 Chargers when average consumer income was $60,000, what is the income elasticity?

     What would happen to quantity demanded if the average consumer income fell to $54,000?

C. If Dodge was selling 150,000 Chargers when the price of gasoline was $2.25, what is cross-price elasticity?

     If the price of gasoline rises 10%, how much would the number of Chargers sold increase or decrease?

Consider an island served by a single ferry company. There are two types of people who visit

the island, day-trippers who come in the morning to enjoy the island’s beaches on a Saturday or

Sunday (or sometimes on a weekday) and permanent summer residents who work in the city

during the week but come to the island on Friday night to spend the weekend and then leave on

Monday to return to work. The ferry has the following rate schedule: $6.50 for a same-day round

trip or $5.00 for a one-way trip. There are no round-trip savings for people who do not want to

travel on the same day.

a) Given the description of the two groups who visit the island, what kind of price

discrimination, if any, could work here?

b) What will be the price of a round-trip ticket for the permanent summer residents?

c) Is the rate schedule that the ferry company currently uses an effective price discrimination

device? Why or why not?

Texas is unusual in that it has two high courts: one to hear civil cases and one to hear criminal cases. Why do you think Texas has such a system? What are the consequences (good and bad) of having two separate high courts?

Why was the Wagner Act(NLRA) necessary to ensure employee rights and what were its major provisions?

Would Franklin D. Roosevelt have supported Canada's universal healthcare system? why or why not? also what kind of actual social programs did FDR give to the public? (if he did at all; I know that giving subsidies to farmers to produce less crop is not a social program, nor was the NIRA)

Briefly describe the impact of the ACA on health insurance and payments to providers. What are some challenges that have arisen?

A small country trades food and clothing on world markets at prices pc and pf (these prices are fixed from the point of view of the small country). This country produces both goods (clothing with capital and labor; food with land and labor) and imports food. Capital and land are fixed factors while labor can move between sectors. Policy makers are considering the imposition of a 10% tariff on food (this tariff would raise the price of food in the country by 10% and would not affect the price of clothing). All workers, capital owners, and land owners share the same homothetic preferences.

1. What will be the effect of this tariff on the returns to all 3 factors (w,rk, rr)? If these returns increase, be sure to specify whether they will increase by more or less than the tariff (i.e. whether they will increase by more or less than 10%).

2. Use your answer to part (a) to predict whether each factor will have any incentives to lobby the policy makers for protection (the imposition of the tariff).

What are the potential benefits of having a Single Payer Universal Health Insurance system?

What are the potential detriments of having a Single Payer Universal Health Insurance system?