***Answers only need to be about 200 words or so each. No formatting is required.****
1, Let us review our basic laws, the law of Supply and the law of Demand. How does or how would a tax levy on the goods/services affect the shifting of the supply/demand curves on the part of the buyer/consumer and the seller/producer of the goods and services?
2. A key concept introduced in our Learning Activity is the concept of deadweight loss. If your county government increases the tax on gas, does the deadweight loss from the gas tax rise? Does the revenue from the gasoline tax rise as well?
3. Imagine yourself as a government policymaker in charge of designing an economic system. Would you consider consumer surplus in the design process? Why or why not?
4. What is your understanding of Welfare Economics? Give some real world applications of Welfare Economics.
5. What do you think should the US International goal/goals should be on:
a. exchange rates
b. trade balance
6. A country can take one of three approaches in achieving free trade. Please give a real world application of:
a. multilateral approach
b. bilateral approach
c. unilateral approach
7.One of the practices US companies do to save is outsourcing? Do you agree or disagree with this practice?