Question

In: Economics

Question 1:  In the October 26th, 2011, edition of The Villager, Joanne Routzahn wrote a letter to...

Question 1:  In the October 26th, 2011, edition of The Villager, Joanne Routzahn wrote a letter to the editor titled “Extend student rental moratorium.” Ms. Routzahn is referring to a one-year moratorium on student-rental housing in a designated area surrounding the St. Thomas campus. A particular excerpt from her letter:

Macalester-Groveland is known for its stability with houses and families, children and older adults who take pride in their properties. We have respect for our neighbors and do not disfigure houses to make money. Converting small one-story homes into rental properties with absentee landlords does not add value to our neighborhood. It devalues and detracts from not only that house but the houses next door and the neighborhood in general.

  1. What is the specific market (good or service) that this moratorium is aimed at? Who are the “consumers” in this market? Who are the “producers” in this market?

  1. According to Ms. Routzahn, does this market exhibit a positive or negative externality? Briefly explain.   How are the effects of this externality monetized?

  1. Would the private market over or under produce this good / service, relative to the efficient quantity? Briefly explain how you know.

  1. What is a government policy we learned about in class that could correct (“fix”) this problem? Briefly explain how the policy would work.

Solutions

Expert Solution


Related Solutions

Question 1: In the October 26th, 2011, edition of The Villager, Joanne Routzahn wrote a letter...
Question 1: In the October 26th, 2011, edition of The Villager, Joanne Routzahn wrote a letter to the editor titled “Extend student rental moratorium.” Ms. Routzahn is referring to a one-year moratorium on student-rental housing in a designated area surrounding the St. Thomas campus. A particular excerpt from her letter: Macalester-Groveland is known for its stability with houses and families, children and older adults who take pride in their properties. We have respect for our neighbors and do not disfigure...
On September 1, Michael Keaton, a used car dealer, wrote a letter to Christian Bale in...
On September 1, Michael Keaton, a used car dealer, wrote a letter to Christian Bale in which he said, "I have a 1955 Bat-mobile in mint condition that I recently purchased from Adam West. I will sell you this vehicle for $14,500 at any time before October 10. [Signed] Michael Keaton." By September 15, having heard nothing from Christian, Michael sold the Bat-mobile to Ben Affleck. On September 29, Christian accepted Michael's offer and tendered $14,500." When Michael told Christian...
I. (a) On October 1, Sam wrote to Byron, “I offer to sell you my pickup...
I. (a) On October 1, Sam wrote to Byron, “I offer to sell you my pickup truck for $10,000 all cash payable on November 15, and will have it ready for delivery to you on November 15. This offer expires on October 20. [signed] Sam.” Byron received the letter on October 2. On October 17, Byron sent the following letter to Sam: “I am very much interested in your offer, but I am a little short of cash. I accept...
Consider the game in Question 1(I wrote it at the end of this question. See below)....
Consider the game in Question 1(I wrote it at the end of this question. See below). Assume the only letter available are G, K and Q and that the game is played sequentially. a. Write down the game in its extensive form (assume Bill moves first) and find the Rollback equilibrium(a) of the game b. Specify the strategies of the two players c. Draw the game in its strategic form and find the Nash Equilibria d. Define a Subgame-Perfect Equilibrium...
Circle the letter of the choice that best completes the statement or answers the question. 1....
Circle the letter of the choice that best completes the statement or answers the question. 1. The factors that affect the amounts that consumers, businesses, government, and foreigners wish to purchase at each price level are the A. real-balances, interest-rate, and foreign purchases effects. B. determinants of aggregate supply. C. determinants of aggregate demand. D. sole determinants of the equilibrium price level and the equilibrium real output. 2. Amid Covid-19 pandemic, the International Monetary Fund (IMF) forecast that Saudi Arabia's...
Question 1: April 23rd, 2011 issue of the Economist reports 1 year Treasury yields in the...
Question 1: April 23rd, 2011 issue of the Economist reports 1 year Treasury yields in the US and Turkey as 0.28% and 6.25% respectively. a. Why do you think the interest rates are so high in Turkey as compared to the US? b. Based on the reported interest rates, what would be the 1 year forecast of Turkish Lira. (Assume that current spot rate is USD/TRY 1.5300). Can the interest rate differentials explain the change in the exchange rate?
Question 1 The American Pet Products Association conducted a survey in 2011 and determined that 60%...
Question 1 The American Pet Products Association conducted a survey in 2011 and determined that 60% of dog owners have only one dog, 28% have two dogs, and 12% have three or more. Supposing that you have decided to conduct your own survey and have collected the data below, determine whether your data supports the results of the APPA study. Use a significance level of 0.05. Data: Out of 119 dog owners, 70 had one dog and 30 had two...
Question from: International Accounting, Fourth Edition Company ABC acquired a piece of equipment in Year 1...
Question from: International Accounting, Fourth Edition Company ABC acquired a piece of equipment in Year 1 at a cost of $100,000. The equipment has a 10-year estimated life, zero salvage value, and is depreciated on a straight-line basis. Technological innovations take place in the industry in which the company operates in Year 4. Company ABC gathers the following information for this piece of equipment at the end of Year 4: Expected future undiscounted cash flows from continued use: $59,000 Present...
Question 1 The following questions are based on the letter below. Dear Madam: Unfortunately, because you...
Question 1 The following questions are based on the letter below. Dear Madam: Unfortunately, because you have not paid your account for the last three months, we have absolutely NO CHOICE but to turn off your heat soon. We know that winter is upon us and it's a horrible time to be without heat, but you really brought this on yourself. Next time, we recommend PAYING your bills ON TIME. If you get us your outstanding payments soon, you can...
Question II : The Water Bottle Company was incorporated on October 1, 2016. The following transactions...
Question II : The Water Bottle Company was incorporated on October 1, 2016. The following transactions occurred during November: Transaction Number Date 1) 1-Nov Issue additional common stock for $4500---------------------4,500 2) 1-Nov Purchase 800 water bottles @ $10 each on account------------------- 8,000 3A) 3-Nov Sell 300 water bottles @ $30 each for cash----------------------------- 9,000 3B) 3-Nov Same…. COGS entry 300 water bottles @ 10 each -----------------3,000 4A ) 10-Nov Sell 400 water bottles @ $40 each on account----------------------------------------------- 16,000 4B)...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT