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Purpose of Assignment
In Week 2, students will employ the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. Students learn about welfare economics–the study of how the allocation of resources affects economic well-being–and will discover that under most circumstances, the equilibrium price and quantity is also the one that maximizes welfare. Students will review different sources of externalities and a variety of potential cures and will see that while markets are usually a good way to organize economic activity, governments can sometimes improve market outcomes. Students will see how the U.S. government raises and spends money and the difficulty of making a tax system both efficient and equitable.
Scenario: You have been assigned to a team that has the responsibility of preparing a paper for the governor’s next economic conference.
Prepare You have been assigned to a team that has the responsibility of preparing a 15-20 PPP slides to analyze the current market conditions. Address the following topics: (You need to address each bullet point in a separate slide and include your major points in the slides.)
Cite a minimum of three peer-reviewed sources, not including your textbook.
Format your cover and reference slides consistent with APA guidelines.
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