Reference no: EM133479619

Discussion Post: Hurricane Andrew in Florida & Louisiana

Question I. After Hurricane Andrew hit Florida and Louisiana, consumers expressed outrage at the high prices being charged for chainsaws, generators, and bottled water. If governments followed the consumers' demands and imposed price ceilings in these markets, what is the likely result?

Question II. Why is it possible that the economy will not self-correct out of a recessionary gap

Question III. Explain why government, rather than private firms, is required for efficient mosquito eradication programs

Question IV. How is the unemployment rate calculated? Describe the three principal types of unemployment.

Question V. Many cities have summer concert series in which music is provided in a public park. These performances are free in some areas. Apply the concept of a public good to summer performances and explain whether an admission charge is efficient

Question VI. SouthState Chemical Co. produces pine oil cleaners in a process that produces emissions that discolor the paint on nearby houses, although the emissions have been declared nontoxic to humans.

Question 1) Is the price for the cleaner likely to be allocatively efficient?

Question 2) If your answer to (1) is no, what is an appropriate government policy to correct the problem?