Microeconomics (7th Edition)
Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 1, Problem 1.1.8PA
To determine

Incentive problem for the student loan program.

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3. The following is quoted from Global News "British Columbians could be fined $230 for not wearing a mask in indoor, public spaces" by Richard Zussman on November 24, 2020. "Provincial health officer Dr. Bonnie Henry was reluctant to put in a mandatory mask policy but decided to support the policy after concerns were raised by businesses about enforcing a mask requirement." Many people would not wear masks in public indoor spaces before the mandatory mask policy was enforced. What kind of market failure do you think exist in this case? How does the $230 fine help address this market failure?
A tax policy analyst proposes that we should eliminate exemptions from taxes on food andmedicine (i.e., we should start taxing these goods) because taxes on these goods would be anefficient way to raise revenue.a. What do you think the analyst means when she says that taxing these items would bean efficient way to raise revenue?                 b. Is the analyst correct that taxing food and medicine would be an efficient way to raiserevenue? Draw a diagram to help explain. Hint: Think about the demand curve for thesegoods.c. Why might there be little political support for such a policy
Define economics. What are the differences between microeconomics and macroeconomics.
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