Kindly solve these attachments.

4. After the pandemic is over, the loss of government revenue due to the economic lockdown and the cost of the worker compensation scheme, made government debt soar and the treasury asks you for advice on how to reduce government debt. a) Currently, the citizens of Korona pay a flat tax on labour income of 20% and a proposal by the minister is to increase the tax rate to 30% if income exceeds the threshold of $20,000. Give your assessment of the likely effect of the proposal on labour supply, paying particular attention to the underlying forces at work. Briefly comment on how these forces may affect government revenue. [You can include a graph if it helps to illustrate your reasoning; word limit 250 words; 8 marks]. b) An alternative policy proposes to introduce a tax on inheritances to raise the same amount. Assess the effect on welfare of this inheritance tax allowing for different behavioural responses. [word limit 200 words; 6 marks]. c) Contrast the proposals in a) and b) regarding the potential for off-shore tax evasion. [word limit 200 words; 6 marks].Part B (10points, questions 11 to 20) Listed in the table below are National Accounts data for a small country: S (billions) Consumption 400 Imports 10 Investment (gross) 40 Government purchases 100 Exports 20 Capital Consumption Allowance (CCA) 20 Statistical Discrepancy 5 Receipt of factor income from other countries 12 Payments of factor income to other countries 10 Answer the following questions (provide the correct values for each item) using data provided in the table above: 1 1. Net Exports = 12. Net Factor Income from Abroad = 13. GDP = 14. GNP = 15. NNP = 16. Consumption expenditure as a percentage of GDP = 17. Government expenditure as a percentage of GDP = Questions 18 to 20 use data in the table below: Year 1 Year 2 Price Quantity Price Quantity Oranges $5.00 100 $5.00 150 Pears $3.00 100 $4.00 75 Given the data in the table above representing the total output of a small country. Calculate Real GDP for Years 1 & 2 and the growth rate in Real GDP between the two years. Remember, use Year 2 as the base year.Setup: Imagine, you were hired as economic advisor to the treasury of the fictional country, Krona. The country faces an epidemic of a new viral disease, which is deadly for about 6% of the population. The airborne disease spreads rapidly across the citizens of Krona, because there is no vaccine available yet. As economic advisor your input is crucial to lead the policy response to the outbreak of the illness. 1. The Health Ministry provides some evidence that wearing simple facemasks reduces passing on the disease from an infected to a healthy individual by about 70 percent, but reduces chances for own infection only by 10 percent (when exposed to an infected individual not wearing a mask). a) The government of Krona wants you to explore whether private agents can create markets to price the corresponding externality. Discuss briefly how this might work in theory and in practice. [word limit 200 words; 8 marks]. b) Propose one alternative policy option to address the externality that leads to the optimal level of wearing of face covering. Explain briefly issues around the practical implementation [world limit 200 words; 6 marks]. c) Suppose that some preliminary research finds that wearing of face masks leads to an increase in infections of the individual wearing the face mask. Explain how this result may affect the policy proposed in b). [word limit 200 words; 6 marks].Setup: Imagine, you were hired as economic advisor to the treasury of the fictional country, Krona. The country faces an epidemic of a new viral disease, which is deadly for about 6% of the population. The airborne disease spreads rapidly across the citizens of Krona, because there is no vaccine available yet. As economic advisor your input is crucial to lead the policy response to the outbreak of the illness. 1. The Health Ministry provides some evidence that wearing simple facemasks reduces passing on the disease from an infected to a healthy individual by about 70 percent, but reduces chances for own infection only by 10 percent (when exposed to an infected individual not wearing a mask). a) The government of Krona wants you to explore whether private agents can create markets to price the corresponding externality. Discuss briefly how this might work in theory and in practice. [word limit 200 words; 8 marks]. b) Propose one alternative policy option to address the externality that leads to the optimal level of wearing of face covering. Explain briefly issues around the practical implementation [world limit 200 words; 6 marks]. c) Suppose that some preliminary research finds that wearing of face masks leads to an increase in infections of the individual wearing the face mask. Explain how this result may affect the policy proposed in b). [word limit 200 words; 6 marks].Ex 17.3: Fish and Coconuts, Part II Let's decentralize the model from exercise 5.2. Now, let's think of "Chuck" as two firms and one consumer. Each firm (i.e., the "fish firm" that produces good 1 and the "coconut firm" that produces good 2) has the production function f(L) = VI Both firms take the price of their good as given. The labor supply is L = 100, supplied inelastically. For simplicity, let's fix p2 = 1, and let p1 = p; so throughout this problem, we'll be interested in the equilibrium price ratio p = p1/P2. (a) Assuming the two firms take the price of their good as given, find their equilibrium profit-maximizing combinations of outputs, Y, and Y2, as a function of p. You may do this in one of two ways: . Easy way: Use the fact that the firms will produce at the point along the PPF that sets MRT = p. Remember that you found the equation of the PPF and an expression for the MRT in exercise 5.2! . Hard/thorough way: Find the firms' individual supply functions, S1(p, w) and S2(w) (since p2 = 1). Find their labor demands, and set labor demand equal to the total labor supply. Solve for the equilibrium wage rate as a function of p - that is, w*(p). Finally, plug w* (p) back into the supply functions to get Yr (p) = Si(p, w*(p)) and Y,(p) = S2(w* (p)). (b) Find the total monetary value of the fish and coconuts produced given p1 = p and py = 1: that is, evaluate M(p) = pYi(p) + Y2(p) given the functions you derived in part (a). (c) Now suppose the consumer has preferences u($1, 22) = 45 Inc1 + 1012. Find her optimal quantity of fish, X], as a function of p. (Note: because this is a quasilinear utility function, it won't be dependent on her income!) Set this equal to the equilibrium quantity of fish you found in part (a), Y; and solve for the equilibrium price ratio, p*. Note: this is a nasty quadratic equation, use a calculator or Wolfram alpha to solve! Confirm that at that price ratio, the quantity of fish and coconuts supplied (and therefore demanded) is the same as you found in question 5.2(b)