Question
help me kindly i need help You have been hired by the US Secretary of Education to assess the impact of emergency responses to the
help me kindly i need help
You have been hired by the US Secretary of Education to assess the impact of emergency responses to the Covid crisis. Assume the federal government sent each K-12 school district $2,000 per child (HISD spends about $14,000/child) because of the economic fears from the Covid pandemic. In turns out, however, that school districts did not have a change in property tax revenue, nor did the states have a change in their total revenues. So the $2,000 federal grant per student was an increase in school resources. The problem, of course, is that a lot of instruction changed to on-line, for which the school districts were not fully prepared. This policy memo asks you to think about demand for school district outputs, and to consider at the same time what are the objectives of school administrators, before you conclude with a response to the Secretary. There are two modeling approaches (at least) you could take. It would be perfectly reasonable to model taxpayer choices with a demand curve- use this tool to model how taxpayer demand might change. An alternative seemingly equally valid model would be to consider that the cost of a given educational quality changed. Based on the predictions, which of the two models (shift in demand, or shift in costs) makes more sense?
* This questions is asking you to draw the graphs for a demand curve shift and a graph for a cost shift curve. Thanks.
(b) Now go back to the decision where to locate plant 1. Show that A will win the first plant. (c) Discuss the effectiveness of subsidies in this case, and compare it with your finding in the first part of the problem. Short questions (15 points) 1. Based on your knowledge of the Hecksher-Ohlin model comment briefly on the following statement: "Trade openness is always beneficial for workers because it allows them to buy cheaper imports from abroad." 2. A country wishes to protect a car factory, even if it the only car producer in the country and enjoys some monopoly power. Is a quota or a tariff the most efficient way to do it? 3. Give one economic argument for, and one against, the use of tariffs to protect a local "infant" industry.(b) Now go back to the decision where to locate plant 1. Show that A will win the first plant. (c) Discuss the effectiveness of subsidies in this case, and compare it with your finding in the first part of the problem. Short questions (15 points) 1. Based on your knowledge of the Hecksher-Ohlin model comment briefly on the following statement: "Trade openness is always beneficial for workers because it allows them to buy cheaper imports from abroad." 2. A country wishes to protect a car factory, even if it the only car producer in the country and enjoys some monopoly power. Is a quota or a tariff the most efficient way to do it? 3. Give one economic argument for, and one against, the use of tariffs to protect a local "infant" industry.What is the amount of cars supplied and demanded under this regime?I 4. Find the tariff that would yield exactly the same level of impede as established In part 3. Assume this tariff is on the form: rdollars per car. 5. Draw a graph that represents the autarky equilibrium. the free trade equilibrium and the two equivalent restricted trade equilibria. E. Quentitatively assess welfare under the three regimes: free trade. import quota and tariff. under the assumption that the goven'nent doesn't auction oft the quotes. but randomly assigns them to foreign countries. Calculate consumer surplus. producer surplus and government revenues under the three regimes and then compare welfare loss due to the two types of trade restriction. it. Growth and Trade Take two countries. Home and Foreign, that have different relative endowments of the two factors of production. capital and labor. These two factors are used in the production of two goods. airplanes. which use relatively intensiver capital and textiles. which use labor relatively intensively. Assume that the Home country is relatively better endowed with capital titan labor with respectto the Foreign country. Desm'be qualitatively and draw the appropriate graphs to illustrate the impact on the two oounhies' terms of trade and wetfare of the following growth pattems: 1. Increase in the capital stock in the Home country 2. Increase in the labor supply In the Home country 3. Increase in the capital stock in the Foreign country 4. Increase in the labor supply in the Foreign country c 2. Biased Growth and Trade There are two countries, Home and Foreign. There are two goods: Grains and Textiles. The preferences of the Home and Foreign consumers are described by the utility function: logxc + log.Xr. Each consumer in the Home country has a fixed endowment of 2 units of G and 1 unit of T. The consumers in the Foreign country have 1 unit of G and 2 units of 7. That is, the endowments are: eG = 2, er = 1 ed = 1,e; = 2 1. Show, by deriving from utility maximization, that the demand functions for the two goods by the Home consumer are given by: 1-(poec + prer) XT = 1 - (poec + prer) 2. Find the relative prices in autarky in the two countries, ( )", (" )". Show that 3. Now suppose there is free trade. Find the equilibrium relative price in the world market. What good is country Home exporting (importing)? Why? What are total exports of country Home? 4. Suppose there is growth in the textile sector in the Home country and the endowment of textiles becomes er = 4. All other endowments remain the same and there is still free trade. Find the new equilibrium price ( , )" in the world market with the new levels of endowment. 5. What does this mean for the terms of trade of country Home? What are the total exports of country Home after growth has taken place? Was growth import-biased or export-biased? Who benefits from growth? 6. Can you show that country Foreign is worse-off after growth (hint: show that after growth takes place country Foreign goes back to autarky consumption). Use a graphical illustration to make your point.3. Define both terms and explain the difference between microeconomics and macroeconomics. Is gross domestic product a microeconomic or macroeconomic question? Is the price change of pizza a microeconomic or macroeconomic question? 4. Scans of internal organs using magnetic resonance imaging (MRI). These devices are often covered by subsidized health insurance programs such as Medicare. Consider the following table illustrating hypothetical quantities of individual MRI testing procedures demanded and supplied at various prices. Answer the following questions (4 points) Price Quantity Quantity Demanded Supplied $100 100,000 40,000 $300 90,000 60,000 $500 80,000 80,000 $700 70,000 100,000 $900 60,000 120,000 a. What is the equilibrium price and equilibrium quantity of MRI tests? b. Suppose that the government establishes a health plan guaranteeing that all qualified participants can purchase MRI tests at an effective price to the individual of $100 per test. How many MRI tests are now demanded? Is the result in the market a surplus or shortage? How large is the surplus or shortage? 5. Paint and paintbrushes are complement goods. Describe what occurs in both markets when there is an increase in the price of paint. In your explanation, be sure and describe which one is a change in quantity demanded with movement along the demand curve and which one is a change in demand with a shift in the entire demand curve: a. Explain what happens to the demand curve for paint when the price of paint increases. b. Explain what happens to the demand curve for paintbrushes when the price of paint increases. 6. Briefly explain the three tax systems - proportional, progressive and regressive. As you explain each one, also compare the relationship between marginal tax rate and average tax rate as income rises for each one.3. Define both terms and explain the difference between microeconomics and macroeconomics. Is gross domestic product a microeconomic or macroeconomic question? Is the price change of pizza a microeconomic or macroeconomic question? 4. Scans of internal organs using magnetic resonance imaging (MRI). These devices are often covered by subsidized health insurance programs such as Medicare. Consider the following table illustrating hypothetical quantities of individual MRI testing procedures demanded and supplied at various prices. Answer the following questions (4 points) Price Quantity Quantity Demanded Supplied $100 100,000 40,000 $300 90,000 60,000 $500 80,000 80,000 $700 70,000 100,000 $900 60,000 120,000 a. What is the equilibrium price and equilibrium quantity of MRI tests? b. Suppose that the government establishes a health plan guaranteeing that all qualified participants can purchase MRI tests at an effective price to the individual of $100 per test. How many MRI tests are now demanded? Is the result in the market a surplus or shortage? How large is the surplus or shortage? 5. Paint and paintbrushes are complement goods. Describe what occurs in both markets when there is an increase in the price of paint. In your explanation, be sure and describe which one is a change in quantity demanded with movement along the demand curve and which one is a change in demand with a shift in the entire demand curve: a. Explain what happens to the demand curve for paint when the price of paint increases. b. Explain what happens to the demand curve for paintbrushes when the price of paint increases. 6. Briefly explain the three tax systems - proportional, progressive and regressive. As you explain each one, also compare the relationship between marginal tax rate and average tax rate as income rises for each oneStep by Step Solution
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