Define the institutional framework of macroeconomic policymaking.
Assignment 1 Questions: Week 1 to Week 5: – [5 Marks]
Q1. Illustrates the market for chocolate bars has the following demand and supply
schedules: [1.5 Marks]
Price Quantity Demanded Quantity Supplied
$3 111 26
$4 100 53
$5 80 80
$6 64 92
$7 51 111
$8 37 120
a. Graph the demand and supply curves. What is the equilibrium price and quantity in this market?
b. If the actual price in this market were above the equilibrium price, what would
drive the market toward the equilibrium?
c. If the actual price in this market were below the equilibrium price, what would
drive the market toward the equilibrium?
Q2. Illustrates the market for pizza is characterized by a downward-sloping demand curve
and an upward-sloping supply curve. [1.5 Marks]
a. Draw the competitive market equilibrium. Label the price, quantity, consumer
surplus, and producer surplus. Is there any deadweight loss? Explain.
b. Suppose that the government forces each pizzeria to pay a $1 tax on each pizza sold. Illustrate the effect of this tax on the pizza market, being sure to label the consumer surplus, producer surplus, government revenue, and deadweight loss. How does each area compare to the pre-tax case?
c. If the tax were removed, pizza eaters and sellers would be better off, but the
government would lose tax revenue. Suppose that consumers and producers voluntarily transferred some of their gains to the government. Could all parties (including the government) be better off than they were with a tax? Explain using the labeled areas in your graph
Q3. Suppose that a market is described by the following supply and demand equations:
QS = 2P
QD = 300 – P
a. Solve for the equilibrium price and the equilibrium quantity.
b. Suppose that a tax of T is placed on buyers, so the new demand equation is
QD = 300 – (P + T).
Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold?
c. Tax revenue is T X Q. Use your answer to part (b) to solve for tax revenue as a function of T. Graph this relationship for T between 0 and 300.
d. The deadweight loss of a tax is the area of the triangle between the supply and
demand curves. Recalling that the area of a triangle is 1 ⁄2 x base x height, solve for deadweight loss as a function of T. Graph this relationship for T between 0 and 300. (Hint: Looking sideways, the base of the deadweight loss triangle is T, and the height is the difference between the quantity sold with the tax and the quantity sold without the tax.)
e. The government now levies a tax on this good of $200 per unit. Is this a good
policy? Why or why not? Can you propose a better policy?
academic trips or sport competitions, scholarships and the academic honours roll. “NCA statistics show that 82% of cheerleaders are accepted into college.” In 2010 cheerleading was rejected from recognition by U.S. District Judge Stefan Underhill, who found that competitive cheerleading did not have the organization, post-season structure or standardized rules required to be considered a varsity sport, when trying to comply with gender-equity requirements, upholding a U.S. District Court decision against Quinnipiac University. To elaborate on Title IX, the distinction of a sport falls on whether it has coaches, practices, competitions during a defined season and a structured governing organization. The primary concern for the sport should be competing not just the support of other athletic teams. Cheerleading was attached to the idea of preparation for performances during football games and sports council emphasises on the human physical activity involved when the sporting activity takes place and not activity in preparation for it. Though, the increase of cheerleading as a competitive sport has been through the increase of competitions just focused on cheerleading itself, within America and now especially within the United Kingdom. Where there have been the largest known competitions with numerous divisions from University teams and professional teams whether they are co-ed or all girls teams for example The British Cheer Association National Championships, held in Telford, March 26-27, 2016. There has been an unusual but gradual popularity upsurge for cheerleading within the UK. “Loughborough University’s cheerleading team, Goldrush, reports that the number of members has increased by 27.3 per cent this year, and the University of Exeter’s cheerleading team, the Exeter Emeralds, have seen a whopping 85 per cent increase in membership numbers since 2011.” This is also evident from its social popularity growth as well as its involvement in schools. Many more children have considered attendance as an extracurricular sport as well as, including it being included within school curriculums. ‘The Department of Education shows that 37% of schools are now offering cheerleading in PE lessons have been greeted with scorn in the media’. The involvement of the sport within compulsory physical education lessons encourages and satisfies a lot of the stigma around cheerleading. The benefit of the promotion of cheerleading will deliver better equipment, facilities and training for coaches. The UK Cheerleading Association (UKCA) brings 200,000 girls to the programme, who are already involved with many sports covered by This Girl Can. The This Girl Can project developed by Sport England, supports female exercise and sporting activities. With the promotions of Cheer by such organisations like Sport England, enables the sport to reach a whole other range, as well as it being endorsed by ESPN. In order for Cheerleading to be recognised as a sport, the National Governing Body (NGB) must complete certain requirements set out within the Sports Councils’ Recognition Policy 2017. It becomes obligatory for candidates to first read the Applicant Guidance and then complete a pre-application form. The pre-application was created to ensure the potential organisation meets its basic criteria prior to progressing to full application stage. However, even before they are able to apply, they need to make sure they are maintaining all four pre-application and application>GET ANSWER