1:Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions:
- What two policies could you use to reduce the total amount of emissions?
- Why do you think they each would work?
- What would the benefits of each action be (besides emissions reduction)?
- What would the costs of each action be?
- How would you decide what was the best level of emission reduction?
2: The purpose of this question is to become familiar with the terms import and export, and then discuss advantages or disadvantages of buying imports versus buying domestic products in relation to the fashion industry.
- First, post the definitions of import and export, and give examples of a chosen company and product for 1 import and 1 export item.
- Advocate either buying imports or buying domestically for retailing the item.
- Describe in detail 2 arguments to defend your point of view.
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These questions in economics deal with microeconomics such as environmental policies on the economy. One of the neglected areas is transportation. Transportation accounts for most pollution and green house gases emission. Import and export of goods from and into the economy and their impact on the economy and foreign exchange, etc have been discussed in the solution.
Total word count is 1340