ONE (“No Must Argue”): The California Different Charges for Power program (CARE) is a marginal vitality value discount program for low-income clients in California. This system reduces the retail price of pure gasoline by 20% and supplies as much as a 35% discount in electrical energy costs. This system lined virtually 5 million households. A brand new economics paper was simply launched which examined each the effectivity of this system and the fairness impacts of this system.
Half A: Scan the start of the paper (you actually don’t must look past the 4th web page) and take into consideration what a subsidy does to the equilibrium in gasoline and electrical energy markets. If this system had been evaluated utilizing the effectivity standards because it pertains to local weather change, show why it could fail the take a look at.
Half B: Use the questions requested, and the outcomes, within the paper to show how the “chilly hearted, maximizing” instruments of “effectivity” can really Help give a voice to the fairness issues that we have now. Please illustrate.
TWO (“Really feel the Bern”): Suppose that Donald owns a constructing that’s price $606 million to him. There may be one other particular person within the metropolis, Bernie, who values the constructing at $1,312 million (we all know this to be objectively true). Would it not be environment friendly for the Mayor of the town to grab the Donald’s property and switch it to Bernie? Clarify.

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