Explain why this no trade policy would be inefficient

Assignment Help Business Economics
Reference no: EM13885882

A new health minister proposes to distribute an apple a day for free to every citizen. To be effective the legislation states that the free apples may not be traded or sold. Explain why this “no trade” policy would be inefficient.

Reference no: EM13885882

Questions Cloud

Do the actuaries have the incentive to make good decision : A large, well-established home insurance company writes insurance policies to cover losses from fire, theft, and vandalism. In a recent financial review, managers discovered that company performance was lagging behind projections. Do the actuaries ha..
Temperature of the reaction mixture : The heat capacity of thereactants and products are 1.95 kJ/kg-K, the volumetric flow rate is 0.33 m3/hr, and the feedtemperature is 20oC. If the conversion is 95%, calculate (a) the reactor size and (b) the temperature of the reaction mixture, ift..
What is the amount of five equal annual deposits : What is the amount of five equal annual deposits that can provide five annual withdrawals, where a first withdrawal of $1500 is made at the end of year six and subsequent withdrawals increase at $100 over the previous year's, in the interest rate of ..
We restricted imports with higher trade barriers : Would Americans be better off if they bought less from foreigners? Would employment in the United States increase if we restricted imports with higher trade barriers?
Explain why this no trade policy would be inefficient : A new health minister proposes to distribute an apple a day for free to every citizen. To be effective the legislation states that the free apples may not be traded or sold. Explain why this “no trade” policy would be inefficient.
Corrective tax is placed on aircraft passing : Assume that a corrective tax is placed on aircraft passing over a residential area that is located near an airport. Should the proceeds of the corrective tax be used to compensate those who are harmed by the aircraft noise? Explain.
Cash-for-clunkers program : The government of British Columbia has suggested a “cash-for-clunkers” program. Under this program, the government would buy up “clunkers” (older cars that emit a lot of pollutants and do not meet current pollution standards). Is this a sensible poli..
What is the equivalent annual worth of the savings : A construction firm can achieve a $15,000 cost savings in Year 1 and increasing by $2,000 each year for the next 5 years by upgrading some equipment. At an interest rate of 10%, what is the equivalent annual worth of the savings?
Music files are nonrival and effectively nonexcludable : The free-rider concept occurs when a person enjoys the benefits of a good or service without paying for it. Music files are nonrival and effectively nonexcludable, thus creating a free-rider problem. Do you concur that the best solution is for the co..

Reviews

Write a Review

Business Economics Questions & Answers

  Q1 suppose that ike is loss averse in the morning ikes

q1. suppose that ike is loss averse. in the morning ikes stockbroker calls to tell him that he has gained 1000 on his

  Question 1explain and illustrate with diagrams the

question 1explain and illustrate with diagrams the differences between diminishing marginal returns and decreasing

  Q1 i illustrate what price will the monopolistically

q1. i illustrate what price will the monopolistically competitive firm charge in this market?ii illustrate what are the

  Elucidate why currency depreciation leads to an improvement

Elucidate why a currency depreciation leads to an improvement in a countries balance of trade.

  Point on the budget constraint this worker has chosen

Identify the point on the budget constraint this worker has chosen. Elucidate how much is he working every day.

  What is the quantity that maximizes profit

What is the quantity that maximizes profit? What is the revenue and profit at that point? What is the quantity that maximizes revenue? What is the revenue and profit at that point?

  Intellectual property refer to rights of intangible property

Intellectual property refers to the rights of intangible property (IP) such as copyright, trademark, patents, and trade secrets. Explain the rights and responsibilities a company has in protecting its IP and the employees' responsibilities in protect..

  Characteristics of property rights

All of the following are characteristics of "property rights" EXCEPT that:

  What steps would you take to maximize divisions performance

Peak Industries' sales division employs twenty-seven (27) sales people who call on 1,400 customers nationwide. Total annual sales are $15.8 million. What steps would you take to maximize the division's performance?

  Does this lead to misleading comparison between countries

Goods and services sold in black markets, such as illegal0 drugs, are generally not included in GDP. Does this lead to misleading comparison between countries? Should these activities be included as a positive or negative in GDP?

  Compute the price elasticity of demand for good x

Compute the price elasticity of demand for good X between the two prices on the demand curve. Describe the price elasticity of demand for good X.

  Responsibility scheme-charged for solid waste disposal

Under the responsibility scheme proposed by the Hong Kong government, households will be charged for solid waste disposal. Is this charge justifiable from an economics point of view?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd