Question
You are an economist working for your country's government. You must go before policymakers (the president and/or prime minister and their advisers) to use everything
You are an economist working for your country's government. You must go before policymakers (the president and/or prime minister and their advisers) to use everything you've learned thus far to help them make decisions. A global pandemic is occurring, and people are still freely traveling outside of the house; they are socializing, going to bars, clubs, beaches, and sporting events. People are starting to get sick, with 1-2% of the infected population dying and the survivors unable to work for months (both of these have a huge negative impact on labor and human capital). Further, people with other health ailments are dying at a much higher rate as they aren't able to receive medical attention. a. Using a concise explanation (their time is valuable), explain to them which economic model best captures the features of this applied problem and why it is an appropriate choice b. Using a graph and a concise explanation, relate how this problem is inefficient in an economic sense. The explanation should use economic terms, but you should translate what those terms mean for the agents in the model to help the policymakers understand the connection between the model and reality c. Using a graph and a concise explanation, proffer a potential solution to this problem that would improve economic efficiency. Explain the implications of this solution as it applies to the agents in the model and for society. Next, the pandemic is highly contagious, and there are no specialized public hospitals to provide treatment for patients of the disease. Our regular hospitals are overrun, healthcare workers are getting sick, and citizens are dying in parking lots outside. d. Using a concise explanation (their time is valuable), explain to them which economic model best captures the features of this hospital problem and why it is an appropriate choice. e. Using a graph and a concise explanation, relate how this problem is inefficient in an economic sense. The explanation should use economic terms, but you should translate what those terms mean for the agents in the model to help the policymakers understand the connection between the model and reality. f. Using a graph and a concise explanation, proffer a potential solution to this problem that would improve economic efficiency. Explain the implications of this solution as it applies to the agents in the model and for society .
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