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SUMMER EXAMINATIONS - 2007 BACHELOR OF SCIENCE (capital of capital of Singapore) BSc 7 Full meter scotch Policy and Global Environment ECON 2445 professor Richard Taffler Professor Philip Bourke Mr. Ho Pak blood * Time Allowed: 3 Hours Instructions for Candidates purpose any quadruple questions All questions carry equal mark 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 corrupt sugar. However, it leads to an acute paucity of sugar as the sugar makers elect to export sugar instead of selling to domestic consumers. analyze this effect with a suitable diagram of the sugar grocery and explain the problems often caused by this type of price control. (9 marks) (b)The Singapore brass augment the Goods and Services Tax (GST ) from 5 % to 7% for all groovys on 1st July 2007.

Using appropriate diagrams, reason 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 governing tax revenue for the goods in part (i) and (ii). (5 marks) Question 2 (a) detach between a buck private good and a open good.(3 marks) (b)The number of dengue cases (fever caused by mosquito bites) in Singapore has i! ncrease 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. vilify 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: BestEssayCheap.com

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