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Assignment 1105.

 

 

Normative economic statements are economic policy goals and values (opinions). There are two types of economic goals: efficiency and equity. We will begin with efficiency, which is covered extensively in Chapter 4.

Consider these policies:

One: Substantial subsidies to college education, assuming that there is a positive externality to acquiring a college degree. (related to Chapter 4 reading)

Two: Large taxes or penalties for farmers who overuse pesticides and fertilizer, causing runoff into public waterways (a negative externality). (related to Chapter 4 reading)

Three: Tariffs on imported goods. (related to Chapter 26 reading)

Task: Make one substantive but succinct post (75-150 words) to the Activity 4: Normative Economics (Efficiency) Forum. For your post:

Pick one of the policies above, start your own thread and, based only on your reading in Chapters 4 and 26, briefly give an efficiency argument for or against that policy.

The post Normative economic statements are economic policy goals and values first appeared on COMPLIANT PAPERS.

Assignment 1105

 
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