please answer and explain in your own words. i will give thumbs up to those who will answer. thank you.
1. Consider the case of the Rice Tariffication Program. Which of these statements are positive and which are normative? Based on these four statements, create a narrative that states positively and normatively the status of the program. You may expound each statement but please limit your narrative to 500 words. (20 points) a. The objective of the program is to ensure that prices of rice are at competitive prices. b. Interest-free loans to local farmers are inadequately provided and are rarely inclusive. c. Many farmers still have considerably below-poverty line incomes and should be prioritized in the government's aim for a food security. d. Low prices of rice due to free trade has led to loss in livelihood among rice farmers. e. Only members of cooperatives have access to technology adoption projects by the government. What are equivalent and compensated variation and how important are these concepts in Public Economics? (10 points) 3. Suppose Bilbo Baggins is deciding on whether to buy a sword or a bag of golden cups. If he has a utility function of U (C,S) = v4C + S and treasures amounting to 200, while the prices of the sword and bag of golden cup are 4 coppers and 5 coppers, respectively, how many swords and bags of cups can he buy? What does his MRS imply? (10 points) 4. Explain the concept of consumer surplus using graphs or equations. (5 points) 5. Why does it matter that social surplus is maximized? Cite two explanations. (5 points each) 6. What is corrective taxation? If you were the government, how will you make sure that corrective taxation lowers pollution? *Hint: what role does the government play in the market for externalities? (10 points) 7. If the demand function is D(p) = Q = 10 - 2p: a) Not considering the equilibrium price and quantity, what is the elasticity of demand when p = 5? (5 points) b) When does the demand elasticity become unitary elastic? (5 points) c) If we impose a specific tax t = 3 on the producer with a S(p) = Q = -20 + 4p. How would the equilibrium price increase? (4 points) How about quantity? (2 points) What is the supply elasticity given this equation? (2 points) Based on this, what can you say about the burden of the tax? (2 points) d) What is the tax incidence on the buyer and seller? (10 points) e) What is the deadweight loss? Interpret the meaning of this DWL in the economy. (5 points) 8. Explain the concept of deadweight loss and relate it to public policy, Cite an example of a possibly deadweight loss in the Philippine economic landscape and suggest how such DWL can be minimized. (15 points)
