Reference no: EM131083595
Your reading on the topic of price controls should allow you to have some insights on certain situations that could emerge under stressful conditions. Imagine that a natural disaster struck a certain area of the country. Immediately basic goods such as water, gasoline, food, and others became “scarce.” These goods are only available for sale at exorbitant prices. The local government, in an effort to protect its citizens, has determined that these basic goods will be subject to strict price controls and anybody attempting to sell these goods at above stipulated prices will be jailed for a minimum of 10 years. It seems unfair for some to gain at the expense of others. Discuss your position regarding this issue.
(1) Why should or shouldn’t a government implement a price control in this type of situation?
(2) Should in midst of disaster a person be allowed to make a fortune? Why or why not (based on economics theories we learn in the class)?
(3) Who gains and who loses when exchanges outside of the price control system take place?
(4) Would you be entrepreneurial and take a risk despite the penalties associated? If you would, under which economic conditions? If you would not, under which economic conditions
(5) Does a price control in this type of situation lead to an efficient use of the basic resources? Or does it lead to a difference goal? Why or why not? Which economic goals should be the goal of that affected area? Why?
|
Determine the formula of the complex
: Determine the formula of the complex.
|
|
What is the monthly interest rate
: One of the largest car dealers in the city advertises a 3-year-old car for sale as follows. Cash price $13,750, or a down payment of $1375 with 45 monthly payments of $361.23. Sharon bought the car and made a down payment of $2000. The dealer charged..
|
|
What is difference in moral hazard and adverse selection
: What is the difference between moral hazard and adverse selection? ?Car Depreciation problem: A common complaint is that a new car will depreciate by 25% as soon as the new owner drives it off the lot. This information comes from resale price data fr..
|
|
Present value of an annuity
: What is the present value of an annuity of $1,000 paid every year for five (5) years when the funds are received at the beginning of the year discounted at a rate of 9.0 percent.
|
|
Natural disaster struck certain area of the country
: Your reading on the topic of price controls should allow you to have some insights on certain situations that could emerge under stressful conditions. Imagine that a natural disaster struck a certain area of the country. Immediately basic goods such ..
|
|
Different types of knowledge processes
: Discuss the different types of knowledge processes within an organization that focus on the acquisition of new knowledge vs. those processes that build on existing knowledge. Then, discuss how these processes promote capability development in an o..
|
|
Name and briefly describe the organization that you serve
: Components of the strategic security plan - Using the core components that were outlined in the document linked above, devise a format, layout, configuration, or narrative map to identify the details of your selected organization as they fall withi..
|
|
Problems in completing performance evaluations
: Inadequate training of raters can lead to a series of problems in completing performance evaluations. Discuss the potential problems
|