Discussion Essay Assignment in Economics

Discussion Essay Assignment in Economics

Description/Paper Instructions

Discussion Essay Assignment in Economics

1. During the occasional draughts that afflict California, farmers are allowed to purchase subsidized water to irrigate their crops, whereas many California homeowners are forced to pay huge fines if they water their lawns. By law, the subsidized water that farmers have cannot be sold to desperate home owners. How will a water pricing system alleviate home owners’ pain, save taxpayers money, and prevent draughts?

2. Rent controls reduce the rental price below the market clearing price, resulting in a decrease in the number of rental units on the market (meaning there are many frustrated renters). What does this mean in terms of the whole cost of renting an apartment, including “key money,” landlord harassment, and so on? Explain.

3. Some commentators have suggested that the wealthy pay higher income and wealth taxes. How do these taxes affect the incentives of the most productive people, given that one’s wealth is mostly determined by how much output one produces? Assume that the tax revenue is distributed to the needy. What impact does this have on their motivations? What do you think will happen to society’s overall income and wealth as a result of increased taxes like these?

4. Net profits earned by women who own their own firms are only half as high as those gained by men who own their own businesses. Consider why women would be willing to accept fewer revenues in the first place. Are they trapped with lower pay because of their lower wages (from working for others)? Could this, on the other hand, be a reflection of other aspects of life that women may find more favorable than men? Then consider why women in business make less money. Is this evidence of gender discrimination? If so, who is it? If that’s not the case, what else may explain the lower profits?

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