3. The lockdown policy Since Dec. 23th, Xi'an has implemented a strict lockdown policy to combat a growing COVID-19 outbreak after the detection of more than 150 local cases. Besides externality, could you justify the lockdown policy from other perspective? The strict lockdown policy did not allow people to go out to shop, stores were dosed down, and shopping online was difficult because of logistics and staffing problems (iAAÃXAE). In another word, markets were largely not allowed to serve. Government started to organize delivering food to communities. However, there were many complains about shortage of food, basic supplies, and even medical care, painting an image of local government dysfunction. Is this kind of dysfunction avoidable under such a strict lockdown? (hint: you can discuss the power of market economy (vs. mandate or planned economy)) Externality is a typical situation that demands government intervention. Could you suggest some alternative policies to or complementary policies for the lockdown to maximize social welfare? Please first define your objective function in your discussion. Relate your policy suggestions to the types of policies we discussed in this course.

3. The lockdown policy Since Dec. 23th, Xi'an has implemented a strict lockdown policy to combat a growing COVID-19 outbreak after the detection of more than 150 local cases. Besides externality, could you justify the lockdown policy from other perspective? The strict lockdown policy did not allow people to go out to shop, stores were dosed down, and shopping online was difficult because of logistics and staffing problems (iAAÃXAE). In another word, markets were largely not allowed to serve. Government started to organize delivering food to communities. However, there were many complains about shortage of food, basic supplies, and even medical care, painting an image of local government dysfunction. Is this kind of dysfunction avoidable under such a strict lockdown? (hint: you can discuss the power of market economy (vs. mandate or planned economy)) Externality is a typical situation that demands government intervention. Could you suggest some alternative policies to or complementary policies for the lockdown to maximize social welfare? Please first define your objective function in your discussion. Relate your policy suggestions to the types of policies we discussed in this course.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 4PA

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