Microeconomics

Q1. In the situation such as the current COVID-19 pandemic, some economists argue that the short-run shutdown condition is the best tool to determine whether or not the stimulus package to limit the economic damage to small businesses will be of any good. Discuss the shutdown condition and explain how can it be applied to assist policymakers to deliver the help needed by small businesses. What are the implications of using or not using the short-run shutdown condition for the economic survival of small businesses?

Q2. Why is it important to study Microeconomics in Public Policy? While the difference between Macroeconomics and Microeconomics has been settled, it is the common understanding that the micro analysis provides more detailed account of what is going on in societyvaccinations, employment, housing, education, etc. Discuss elaborately how can the supply-demand framework help identify policy strengths, weaknesses, and ideas for improvements.