Economics of Public Policy - 1186 Words

Daniel R. Lupu ECN 4010 2/18/2012 Economics of Public Policy Test 1 2. In thinking about a market economy and a regulated or planned economy, discuss the difference between â€Å"end-independent† rules or laws in society versus â€Å"end-dependent† rules or laws in society. In what ways would â€Å"end-dependent† rules or laws limit the use of knowledge by people in society, and how does â€Å"end-independent† rules or laws provide opportunity for people to use their different types of knowledge in society? (The distinction between â€Å"end-independent† and â€Å"end-dependent† rules or laws were discussed in class and in the article on, â€Å"Free Markets, the Rule of Law, and Classical Liberalism.†) The difference between â€Å"end-independent† laws and†¦show more content†¦(Don’t be afraid to use supply and demand diagrams in your explain and examples.) Usury Laws can lead to a black market in money lending. These regulations set by the government are intended to â€Å"protect† the citizens from â€Å"greedy† lenders by setting a maximum rate of interest, above which it is illegal to lend money. Lenders charge higher rates of interest to compensate for the amount of risk that can be associated with the transaction, risk being the likely hood of not getting paid in full. Once a usury law is put in effect there becomes a maximum rate at which the lender can lend money. With this maximum rate of interest some potential borrowers will be assumed too risky because it is not legal to charge the rate of interest to compensate the risk associated with lending. This leads to a smaller amount of money available to borrow from legitimate lenders, so often a borrower will turn to a black market lender who will illegally lend them money at a higher rate of interest. Often times the black market lender will use forms of persuasion s uch as bodily harm to the borrower and their family to ensure repayment. This clearly is more dangerous than high interest rates. Below is a supply and demand curve that demonstrates the government interest rate and the black market correlation. 5. Many people are disturbed by the idea of a market for vital body organs such as kidneys. Explain why you think these people findShow MoreRelatedTerm Economics On Public Policy1039 Words   |  5 PagesAssignment #2 Lent Term EC230-Economics in Public Policy Question #1: Imagine you are asked to write a press briefing note six years ago on behalf of Del Monte, Inc and the Government of Ecuador, summarizing in about 200 words the case against the EU s tariff on non†ACP bananas. It is still February 2009. On behalf of Del Monte, Inc. and the Government of Ecuador, we want to reiterate our concern regarding the current European Union Tariff Regime on non-ACP bananas. To begin with, this is a regimeRead MoreSocial And Economic Inequalities Of Public Policy3221 Words   |  13 Pagesand economic inequalities exist in the UK particularly because of discrimination and prejudices resulting in unequal society lacking cohesion and unity. In 2008, a comprehensive analysis to critically analyze and asses the level of social and economic inequality was conducted in the UK, by Professor John Hills who chaired the National Equality Panel created by the government to provide in-depth analysis on the subject. The report presented by the National Equality Panel found out that public policyRead MoreThe American Empire: Exceptionalist Political, Economic, and Public Policies1446 Words   |  6 Pagesthat it had an exceptional part to play in protecting freedom in the world. In the following essay, I will look at the consequences of the American political and economic system as well as its public policies. Furthermore, I claim that America has built itself as an exceptional global empire, through political, economic and public policies, that center on capitalism. There are two parts to this argument. The first is about America’s exceptional global situation in which I will discuss the way in whichRead MoreObesity : A Social And Economic Impact On Public Health Policy Essay1622 Words   |  7 Pages Obesity in Adults: Introduction Obesity is defined as the excessive body fat accumulation that negatively impacts adult health conditions. Overweight and obese BMI is between 25 and 30 and 30. In 2010, obesity is a major public health issue that affects one million overweight adults and 400 million obese worldwide. Obesity is associated with risk factors such as diabetes, cardiovascular disease, cancer, and obstructive sleep apnea etc. (Fock Khow, 2013). â€Å" According toRead MoreEconomic Growth and Public Policy of the Uk: Does the Protectionism Help?2525 Words   |  11 PagesEconomic Growth and Public Policy of the UK: Does the protectionism help? Introduction The effects of globalization have touched all the aspects of life and business today. One aspect is the trading policies between countries. Since the late nineteenth century, the collision started between domestic and foreign industries, which ask governments for measures that could protect local industries, without discouraging the country’s trade relations. The term ‘Protectionism’ was thus introducedRead MoreResearch on the Impact of Economic Growth : Case Study of Malaysia998 Words   |  4 PagesPUBLIC EXPENDITURE POLICIES SHAPE THE ECONOMIC GROWTH IN MALAYSIA Public Expenditure/Public Spending can be defined as any expenses made by government particularly to improve certain areas and discipline. For instance, improving public goods and services, welfare and well-being of the people, government defense forces and civil servants, maintaining our economic stability, reducing inequality of income and reallocation of resources. Bose,Haque,Osborn (2003) where I do believe in their argumentsRead MorePublic Land Policy, And The Wilderness Act Of 1964845 Words   |  4 PagesIntroduction For the past decades, public land policy debates have intensified among scholars, planners, and policy makers. The root of the debates is a question of which types of public lands management can provide better economic benefits to adjacent regions that are referred to gateway communities. For a long time, resource extractive industries – such as mineral, oil, coal, and timber development sectors - have been a primary growth engine for the economic growth in those communities. HoweverRead MoreElectoral Pressures In Africa Case Study1531 Words   |  7 PagesHave electoral pressures of the post-1990 period reshaped the economic policies pursued by African governments? Why or why not? In you answer, be sure to contrast the pre- and post-1990 periods, and use the experience of two African countries to support your answer Electoral pressures and economic policies in Africa: Past records and prospects Introduction: The 1990s represent a period of electoral pressures for most Sub-Saharan African countries as governments faced external influences for politicalRead MorePublic Policy Analysis And Management Should Be My Next Step1490 Words   |  6 PagesDuring an economics lectures the professor said to my class â€Å" I do not know whether the increasing income inequality is an issue or not†. I was perplexed. I thought the goal of Economics, as a social science, was to achieve the maximum welfare of people by using all the resources most efficiently. So how is income inequality that renders many people worse off, not an issue? I knew he did not state his opinion to avoid introducing his bias. However, if everyone in the world were to keep their understandingRead MoreCorporate Internal Policy Interference : A Paramount Determinant Of The Mncs Direct Influence Over Government Policy1547 Words   |  7 PagesSection III – Corporate Internal Policy Interference A paramount determinant of the MNCs direct influence over government policy is the subsystem of government policy development that includes the intense cooperation and competition between external and internal interest groups. This policy subsystem includes powerful structural industry groups that utilize economic power to create alliances in government and directly influence policy development (Eisner, p. 137, 2007). This subsystem is stable in