Economics

For the Unit 3 Complete assignment, write a narrative essay (minimum of 1200 words) which addresses the questions and statements below.  When finished, the essay should demonstrate a thorough understanding of the READ and ATTEND sections.  A minimum of three scholarly sources are required, and all sources should be cited and referenced in APA format. 

1. Give an example of each of the following: a. A good that is rivalrous in consumption and is excludable. b. A good that is nonrivalrous in consumption and is excludable. c. A good that is rivalrous in consumption and is nonexcludable. d. A good that is nonrivalrous in consumption and is nonexcludable.  

2. Identify each of the following as an adverse selection or a moral hazard problem a. A person with car insurance fails to lock his car doors when he shops at a mall. b. A person with a family history of cancer purchases the most complete health coverage available. c. A person with health insurance takes more risks on the ski slopes of Aspen than he would without health insurance. d. A college professor receives tenure (assurance of permanent employment) from her employer. e. A patient pays his surgeon before she performs the surgery.  

3. Using the data in the accompanying table, answer the fol- lowing questions: a. For which good does Canada have a comparative advantage? b. For which good does Italy have a comparative advantage?  c. What might be a set of favorable terms of trade for the two countries? d. Prove that both countries would be better off in the specialization-trade case than in the no-specialization-no-trade case.  

4. In the accompanying figure,   

1. PW is the world price and PW + T is the world price plus a tariff. Identify the following: a. The level of imports at PW b. The level of imports at PW + T c. The loss in consumers’ surplus as a result of a tariff  d. The gain in producers’ surplus as a result of a tariff e. The tariff revenue received by the government as a result of a tariff  f.  The net loss to society as a result of a tariff g. The net benefit to society of moving from a tariff to no tariff 

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