Scenario: Imagine you have been assigned the responsibility of preparing a paper for the governor’s next economic conference.
Prepare and Complete a 1,050-word chart as shown below addressing the following:
Watch the video and Define Equilibrium and Explain why equilibrium of supply and demand is desirable.
Define the concept of consumer and producer surplus and Explain the following concepts using the concept of consumer and producer surplus:
Efficiency of markets
Costs of taxation
Benefits of international trade
Define Externalities and Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.
Define the Benefits Principle and Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles.
Cite a minimum of three peer-reviewed sources, not including your textbook.
Markets and the Economics of the Public Sector
Explain why an equilibrium point is desirable.
Define what is the concept of Consumer and Producer Surplus.
Using Consumer and Producer Surplus, explain the Efficiency of Markets.
Using Consumer and Producer Surplus, explain costs of Taxation.
Using Consumer and Producer Surplus, explain the Benefits of International Trade.
How do Externalities prevent market equilibrium?
What government policies remedy inefficiencies in markets caused by Externalities?
Define the Benefits Principles
Using the Benefits Principles, analyze the difference between the efficiency of a tax system and the equity of the tax system.
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