Economics help

Refer to Wray (2001) ‘Buckaroos: The Community Service Hours Program at the University of Missouri-Kansas City’’ in Carlson, E. and Mitchell, W.F. (eds.) Achieving Full Employment in Economic and Labour Relations Review, Supplement to Volume 12, 46-61. (This is available under Econ 1002  Course Readings which takes you to the library link.)

Do  all questions: Q.1 & Q.2 ('Buckaroos') and Q.3 (Fallacy of Composition) for this tutorial. They are only short!. 

For Q2, you should learn about the simple concept of public purpose (Chapter One of the Wray, Mitchell and Watts textbook.)

 1.    The UMKC (Buckaroos) monetary system underpinning the Community Service program is designed to enable students to meet their obligations in a flexible way during their degree programs by providing sufficient hours of voluntary work.  Carefully explain the parallels between the Buckaroos monetary system and national currency systems of sovereign economies by reference to:  i) Government spending;  ii) Taxation.  (Q. 1 about 80 words)

 2.    In what sense does the UMKC Buckaroos program provide public purpose? For the program to run smoothly and to achieve public purpose, should the University Treasury target a particular budgetary outcome each semester, such as requiring students to pay their tax on time (i.e. 25 Bs per student) so a balanced budget can be achieved?  (Q. 2 about 120 words)

 * Under a balanced budget the spending of Buckaroos by Treasury via Community Service providers (CSP) would be equal to the student tax in Buckaroos collected by Treasury in each semester. To inform your answer to the second part of Q2, you may wish to consider a CSP, largely reliant on volunteers, which attempts to house disadvantaged families. For example, how should the CSP and the University Treasury respond to serious flash flooding in the middle of a semester, which has left many disadvantaged families homeless?

 3. Explain the ‘fallacy of composition’ and why this concept is so important for an understanding of macroeconomics. Give one economic example where thinking at the microeconomic level would lead to incorrect assumptions when extrapolated to the macroeconomic level. Clearly explain why your example  is a fallacy of composition. (Q. 3 about 100 words)