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. Prepare a 1,050-word paper addressing the following: • • • • Explain why equilibrium of supply and demand is desirable. 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. Cite a minimum of three peer-reviewed sources; also use the textbook. It details the lessons clearly. Note: 1. Following instructions carefully will earn more points. 2. Papers with fewer than 1,050-content words, or more than 5% over 1,050-content works [@ 1,150-words] will lose points. 3. Write in the 3rd person; avoid I / me / my / you / your / we. Instead write: This analysis will.....; this team believes.... 4. Include a thesis and summary conclusion. 5. APA requires in-text citations. Don't know who? Visit the Center for Writing Excellence and search for examples. Format consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. Mankiw, N. Gregory (2015). Principles of Microeconomics (7th ed.). Stamford, CT: Cengage Learning Markets and the Economics of the Public Sector Grading Guide ECO/365 Version 10 Principles of Microeconomics Copyright Copyright © 2016, 2015, 2014 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. Markets and the Economics of the Public Sector Grading Guide ECO/365 Version 10 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 Met Partially Met Not Met Total Available Total Earned 7 #/7 Partially Met Not Met Comments: 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 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 The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and Met Comments: 2 Markets and the Economics of the Public Sector Grading Guide ECO/365 Version 10 Writing Guidelines Met Partially Met Not Met Total Available Total Earned 3 #/3 10 #/10 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: 3
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