Reference no: EM13800421
The Nation of Wiknam has 5 million residents whose only activities are producing and consuming fish. They produce fish in two ways. Each person who works on a fish farm raises 2 fish per day. Each person who goes fishing in one of the nation's many lakes catches X fish per day. X depends on N, the number of residents (in millions) fishing in the lakes. In particular, if N million people fish in the lakes, each catches X = 6 - N fish. Each resident is attracted to the job that pays more fish, so in equilibrium the two jobs must offer equal pay.
A) Why do you suppose that X, the productivity of each fisherman falls, as N, the number of fishermen rises? What economic term would you use to describe the fish in the town lakes? Would the same description apply to the fish from the farms? Explain.
B) The town's Freedom Party thinks every individual should have the right to choose between fishing in the lake and farming without government interference. Under its policy, how many of the residents would fish in the lakes and how many would work on fish farms? How many fish are produced?
C) The town's Efficiency Party thinks Wiknam should produce as many fish as it can. To achieve this goal, how many of the residents should fish in the lakes and how many should work on the farms?
D) The Efficiency Party proposes achieving its goal by taxing each person fishing in the lake by an amount equal to T fish per day. It will then distribute the proceeds equally among all Wiknam residents. Calculate the value of T that would yield the outcome you derived in part C.
E) Compared with the Freedom Party's hands off policy, who benefits and who loses from the imposition of the Efficiency Party's fishing tax?
|
Using a three-circle venn diagram-categorical arguments
: Using a three-circle Venn Diagram, check the following categorical arguments for validity. Some advertisers try to create a new ideal state for consumers. Some advertisers try to create dissatisfaction with the consumer’s current state. So, some who ..
|
|
Minimax regret rule and equal probability rule
: Under what conditions should a manager use each of the following rules/options for pricing decisions: (a) Maximax Rule; (b) Maximin Rule; (c) Minimax Regret Rule; and (d) Equal Probability Rule? Also address the potential pitfalls of using each rule.
|
|
Explain gambling from a risk-return perspective
: Explain gambling from a risk-return perspective and from a Christian worldview. What is wrong (from a Biblical viewpoint) with gambling if consumers want it? Is price-discrimination always wrong? Under what conditions might it be ethically allowable?
|
|
Explain the public policy lifecycle utilizing public policy
: Explain the Public Policy Lifecycle utilizing a public policy Discuss how the importance of developing a viable Policy Adoption and what policy makers need to consider when adopting new or amending existing policies.
|
|
Only activities are producing and consuming fish
: The Nation of Wiknam has 5 million residents whose only activities are producing and consuming fish. They produce fish in two ways. Each person who works on a fish farm raises 2 fish per day. Why do you suppose that X, the productivity of each fisher..
|
|
Discuss the issues associated with federalism
: Discuss the issues associated with federalism and what local, state, and federal policy makers need to consider when developing emergency response policies?
|
|
Demand for public park for two groups of consumers
: Suppose that demand for a public park for two groups of consumers (A and B) are given by:
|
|
Consumers expect the price of the good to rise in the future
: Explain with graph what happens to aggregate demand curve, and/or aggregate supply curve for the following situations: Consumers expect the price of the good to rise in the future.
|
|
About apple consumption
: Use your own words to write about apple (fruit) consumption in the United States. Please do not use Google unless you paraphrase and list resources. Describe as much as you can.
|