POAD9015 Economics and Public Policy

1. Briefly explain the law of demand, the law of supply, and how demand and supply interact in order to determine the price of goods and services in a market economy. (500 words)

2. Subsidies, excise taxes, price ceilings, and price floors all have a clear impact on the demand, supply, and price of goods and services. Select one of the four and briefly describe such impact. (500 words )

3. Briefly describe the difference between frictional unemployment, structural unemployment, and cyclical unemployment. What policies can/should government enact to respond to each of these? (500 words )

4. What are the differences between a proportional tax system, a progressive tax system, and a regressive tax system? Which do you think is more beneficial to society? Justify your answer. (500 words )