• 1200 words MINIMUM (not including cover/reference pages)
  • References- requirement is at least three scholarly articles, ONE the course textbook, TWO using References below.
  • Textbook(s)

                Arnold, R.A. (2019). Economics (13th ed.). Cengage Learning.
For the Unit 3 Complete assignment, write a (minimum of 1200 words) which addresses the questions and statements below.  When finished, it should demonstrate a thorough understanding of the READ and ATTEND sections.  A minimum of three scholarly sources are required, and all sources should be cited and referenced in APA format.

  1. Give an example of each of the following:
  2. A good that is rivalrous in consumption and is excludable.
  3. A good that is nonrivalrous in consumption and is excludable.
  4. A good that is rivalrous in consumption and is nonexcludable.
  5. A good that is nonrivalrous in consumption and is nonexcludable.

 

  1. Identify each of the following as an adverse selection or a moral hazard problem
  2. A person with car insurance fails to lock his car doors when he shops at a mall.
  3. A person with a family history of cancer purchases the most complete health coverage available.
  4. A person with health insurance takes more risks on the ski slopes of Aspen than he would without health insurance.
  5. A college professor receives tenure (assurance of permanent employment) from her employer and begins to work less hard.
  6. A bank gives out a loan to a person who does not have a stable job.

 

  1. Using the data in the accompanying table, answer the following questions:
  2. For which good does Canada have a comparative advantage?
  3. For which good does Italy have a comparative advantage?
  4. What might be a set of favorable terms of trade for the two countries?
  5. Prove that both countries would be better off in the specialization-trade case than in the no-specialization-no-trade case.

 

  1. In the accompanying figure,

PW is the world price and PW + T is the world price plus a tariff. Identify the following:
a. The level of imports at PW
b. The level of imports at PW + T
c. The loss in consumers’ surplus as a result of a tariff
d. The gain in producers’ surplus as a result of a tariff
e. The tariff revenue received by the government as a result of a tariff
f.  The net loss to society as a result of a tariff
g. The net benefit to society of moving from a tariff to no tariff
 
 

Unit 3 Complete
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