Markets and the Economics of the Public Sector, management homework help

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Obkre78

Business Finance

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Markets and the Economics of the Public Sector

Purpose of Assignment

In Week 2, students will employ the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. Students learn about welfare economics--the study of how the allocation of resources affects economic well being, and will discover that under most circumstances, the equilibrium price and quantity is also the one that maximizes welfare.

Students will review different sources of externalities and a variety of potential cures and will see that while markets are usually a good way to organize economic activity, governments can sometimes improve market outcomes. Students will see how the U.S. government raises and spends money and the difficulty of making a tax system both efficient and equitable.

Assignment Steps

Scenario: Imagine you have been assigned the responsibility of preparing a paper for the governor's next economic conference.

Write a minimum a 1,200 word APA formatted paper addressing the following:

  • Explain why equilibrium of supply and demand is desirable.
  • Include at least 1 chart, graph, or table in the paper
  • Explain the following concepts using the concept of consumer and producer surplus:
    • Efficiency of markets
    • Costs of taxation
    • Benefits of international trade
  • Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.
  • Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles.
  • Use A Section Heading For Each of the above Topics In Your Paper. Do not blend all the Information in the paper without separating each topic with a section heading.
  • Use a Running head and page headers on all APA papers in weeks 2-5.

Cite a minimum of three peer-reviewed sources, not including your textbook.

Format consistent with APA guidelines.

Unformatted Attachment Preview

Markets and the Economics of the Public Sector Purpose of Assignment In Week 2, students will employ the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. Students learn about welfare economics--the study of how the allocation of resources affects economic well being, and will discover that under most circumstances, the equilibrium price and quantity is also the one that maximizes welfare. Students will review different sources of externalities and a variety of potential cures and will see that while markets are usually a good way to organize economic activity, governments can sometimes improve market outcomes. Students will see how the U.S. government raises and spends money and the difficulty of making a tax system both efficient and equitable. Assignment Steps Scenario: Imagine you have been assigned the responsibility of preparing a paper for the governor's next economic conference. Write a minimum a 1,200 word APA formatted paper addressing the following: • • • • • • • Explain why equilibrium of supply and demand is desirable. Include at least 1 chart, graph, or table in the paper Explain the following concepts using the concept of consumer and producer surplus: o Efficiency of markets o Costs of taxation o Benefits of international trade Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities. Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles. Use A Section Heading For Each of the above Topics In Your Paper. Do not blend all the Information in the paper without separating each topic with a section heading. Use a Running head and page headers on all APA papers in weeks 2-5. Cite a minimum of three peer-reviewed sources, not including your textbook. Format consistent with APA guidelines. Markets and the Economics of the Public Sector Grading Guide ECO/365 Version 10 Principles of Microeconomics Individual Assignment: Markets and the Economics of the Public Sector Purpose of Assignment In Week 2, students will employ the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. Students learn about welfare economics—the study of how the allocation of resources affects economic well-being, and will discover that under most circumstances, the equilibrium price and quantity is also the one that maximizes welfare. Students will review different sources of externalities and a variety of potential cures and will see that while markets are usually a good way to organize economic activity, governments can sometimes improve market outcomes. Students will see how the U.S. government raises and spends money and the difficulty of making a tax system both efficient and equitable. Grading Guide Content Students explained why equilibrium of supply and demand is desirable. Students explained the concepts of efficiency of markets, costs of taxation, and benefits of international trade using the concept of consumer and producer surplus. Students discussed how externalities may prevent market equilibrium and the various government policies used to remedy the inefficiencies in markets caused by externalities. Students analyzed the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed Met Partially Met Not Met Comments: Content Met Partially Met Not Met Total Available Total Earned 7 #/7 Partially Met Not Met Total Available Total Earned 3 #/3 10 #/10 Comments: on taxpayers using the benefits principles. The student cited a minimum of three peerreviewed sources, not including the textbook. The paper is 1,050 words in length. Writing Guidelines Met The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. Intellectual property is recognized with in-text citations and a reference page. Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Assignment Total Additional comments: # Comments:
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Explanation & Answer

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Running head: MARKETS AND THE ECONOMICS OF THE PUBLIC SECTOR

Markets and the Economics of the Public Sector
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Submission Date
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MARKETS AND THE ECONOMICS OF THE PUBLIC SECTOR

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Explanation of why equilibrium of supply and demand is desirable
The role of the demand and supply in the market is to regulate the price and the amount
of each good produced in the market. It involves the actions of an individual as they work
together in competitive markets. The importance of the equilibrium in the market is the
sustenance of the growth. At equilibrium, the demand and the supply arcs overlap. Besides, it is
the point at which the required quantity equals the provided amounts. The point is considered
fluid, and it tends to change with the market. In the instances where the government can behave
in a way that makes the equilibrium outcome inevitable, then a competitive equilibrium can be
implemented (Bassetto, 2005).
Both the buyers and the sellers gain benefits at the equilibrium position. The change if the
price at the equilibrium would make some consumers to receive a bargaining because they have
the will of buying even if the price had been somewhat higher. Besides, there would be those
sellers who would have the will of selling the product even if the price had been lower because
the item’s marginal cost fell below the price of the market.
Efficiency of Markets
Market efficiency refers to the availability to all participates in a market of the
effectiveness of the market of the information providing maximum opportunities for the sellers
and the buyers so that transactions can be efficiently carried out with minimum costs (Lee,
2016). It represents the competitive market, allowing the buyers and sellers to act on their behalf
and focus on the establishment of an agreement...


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