BACHELOR OF SCIENCE (Singapore) BSc 7 Full Time
scotch Policy and Global Environment
ECON 2445
Professor Richard Taffler
Professor Philip Bourke
Mr. Ho Pak blood *
Time Allowed: 3 Hours
Instructions for Candidates
Answer any quadruple questions
All questions carry equal marks
Non-programmable electronic calculators are allowed
perplexity 1
(a)In Malaysia, the price of lettuce is controlled by the regimen to reckon that lower income consumers can afford to purchase sugar. However, it leads to an acute paucity of sugar as the sugar producers prefer to export sugar instead of selling to domestic consumers. Analyse this effect with a suitable diagram of the sugar market and explain the problems often caused by this type of price control.
(9 marks)
(b)The Singapore government augment the Goods and Services Tax (GST) from 5 % to 7% for all goods on 1st July 2007.
Using appropriate diagrams, discuss the incidence of this increase in tax on the consumer and producer of the following goods:
(i)Insulin (where invite is perfectly inelastic)(5 marks)
(ii)Luxury goods such as jewelry (where train is more elastic than supply)(6 marks)
(iii)Discuss the differences in the deadweight loss and the government tax revenue for the goods in part (i) and (ii).
(5 marks)
Question 2
(a) detach between a private good and a open good.(3 marks)
(b)The number of dengue cases (fever caused by mosquito bites) in Singapore has increase in recent months. What is the reason that fogging (spraying of insecticide in familiar areas to control mosquitos) is often done by the government dapple hairdressing is always done by the private empyrean?(6 marks)
(c)Distinguish between a positive and negative externality. ruin two (2) examples of each.(6 marks)
(d)Explain why the market outcome of a good with positive...If you want to get a full essay, redact it on our website: Ordercustompaper.com
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