Proportion of consumption later case study

INDICATIVE SOLUTION PAST PAPER.
HERE, YOU CAN SEE WHAT WE ARE EXPECTED TO ANSWER.
THESE WAS THE PAST EXAM AND THE CONTENT WAS UNIT 13 TO UNIT 15.
Answer question 1 and any 3 out of 4 remaining questions.
Question 1 is worth 28 marks and all others are worth 24
marks.
QUESTION 1 (COMPULSORY):
FOR ANSWERS ON WHITEBOARD – PLEASE CLICK HERE FOR MARIO’S TUTORIAL
NOTES – THIS LINK WILL EXPIRE ON 25 FEBRUARY 2021
FOR MY WHITEBOARD TUTORIAL NOTES, SEE THE ELE ASSESSMENTS FOLDER OR
WEEK 5 FOLDER
The island of Fair Isle is the most remote inhabited island in the UK. The main industries in
Fair Isle include crofting (small-scale farming), fishing and knitting which provide citizens
with important sources of food and income. Most government spending in the area goes to
providing the community with basic services as well as transportation to the mainland, while
private investment focuses on infrastructure development. The following equations represent
these activities within the Fair Isle economy (in billions of pounds, where relevant):
C = 150 +c1YD; I = 300; G = 250; X = 200
Income taxes (t) are 15% of equilibrium income.
Imports (m) are 10% of equilibrium income.
Using the information provided, answer the following (round to 2 decimal points where
necessary):
a) The Better Life Index is a measure of ‘Quality of Life’ as released by the Organisation
for Economic Cooperation and Development (OECD). This index includes a number
of different indicators in order to provide a holistic view of quality of life within an
economy. If you were to develop a similar index for Fair Isle, consider the following
elements below and indicate whether or not you would include these in your ‘Quality
of Life’ index. Provide reasons for your choices.
(i) Access to Housing
(ii) Environmental Awareness
(iii) Access to Education
(iv) Sense of Community
(v) Visible Policing
(vi) Work-life Balance
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b) Assume that the inhabitants of Fair Isle are credit-constrained. What forms of selfand/or co-insurance can the inhabitants exercise to help them cope during times of
hardship?
c) Assign a value between 0.2 and 0.8 that you think reflects the marginal propensity
to consume (c1) for this economy. Provide a reason for this choice.
d) Derive the equilibrium level of income (Y) and the multiplier for this economy using
the marginal propensity to consume you assigned in part (c) above.
e) Calculate the government budget balance for Fair Isle and indicate whether it is in
deficit or surplus.
f) Suppose that the Fair Isle government decides to increase the income tax rate to
25%. Calculate the new level of equilibrium income and the multiplier for this
economy after this fiscal policy adjustment.
g) Using your answers from (f), calculate the new government budget balance. How
does this value differ from that calculated in (e)?
Answer:
a) Student discretion… Student to provide acceptable reason for inclusion.
b) Self – Savings accounts, Co-insurance – community relief funds…
c) Students will have to choose a fairly large MPC as inhabitants are credit-constrained.
In this case, using 0.8

d) C = c0 + c1(Y – tY)
= c0 + c1(1 – t)Y
= 150 + 0.8(1 – 0.15)Y
= 150 + 0.8(0.85)Y
= 150 + 0.68Y
M = mY
= 0.1Y
AD = 150 + 0.68Y + 300 + 250 + 200 – 0.1Y
= 900 + 0.58Y
Equilibrium income: Y = AD
Y = 900 + 0.58Y
Y – 0.58Y = 900
0.42Y = 900
Y = 900/0.42
Y = 2142.86
Multiplier =
1
1−[ 1(1− )− ]
=

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−[ . ( − . )− . ]
=

−[ . − . ]
=

− .
3
=

.
= 2.38
OR: Equilibrium income: Y = multiplier * A
Y = 2.38 * 900
Y = 2142 (different due to rounding)
Students can use their answers here (as rounded off to two decimal places) to
carry on:
e) Government Budget = tY – G
= 0.15(2142.86) – 250
= 321.43 – 250
= 71.43 (Budget Surplus)
f) Multiplier changes…
Multiplier =
1
1−[ 1(1− )− ]
=

−[ . ( − . )− . ]
=

−[ . − . ]
=

− .
=

.
= 2
Y = new multiplier * A
Y = 2 * 900
Y = 1800
New equilibrium income = 1800
g) Government Budget = tY – G
= 0.25(1800) – 250
= 450 – 250
= 200 (now a larger Budget Surplus)
Answer any THREE out of the following FOUR questions:
QUESTION 2:
Label each of the following statements as true, false or uncertain, and explain your answer
fully. Utilise graphical illustrations or equations, where relevant, to aid your explanations.
4
a) If a firm’s shareholders have a discount rate (ρ) that is greater than the cost of
borrowing (r) for the firm, but less than the firm’s profit rate (π) then, with any
accumulated profits, the firm’s board will choose to pay dividends to their shareholders.
b) If the government cuts its spending during a recession, there will be an improvement in
the budget balance, ceteris paribus.
c) If the multiplier is negative, a government stimulus package would lead to a fall in
GDP.
d) Trade with other countries can limit the success of a fiscal stimulus package in the
home country.
e) The massive injection of public funds into the UK economy to help with post-COVID-19
economic recovery is likely to lead to an increase in the UK Debt-to-GDP ratio.
Answers:
a) False; owners of firms will compare their discount rates to the return they can
get by not consuming now. If the discount rate is above r BUT below π, then
firms will not consume now. As long as π exceeds r and the discount rate then
they will decide to invest in the economy or even abroad.
b) Uncertain. If we are in a situation like in Figure 14.11b (see below), consider the
move from A to B. The budget balance deteriorates because of the operation of
the automatic stabilizers. The government then cuts G in order to try to restore
its budget balance. As the model shows, output falls further. The effect on the
budget balance depends on the relative change in tax income to the
change in government expenditure. In spite of the fall in output from B to C,
the budget balance does not deteriorate further.
c) True; when it comes to stimulus packages, their success or failure depend on the
size of the multiplier. If the multiplier is less than 1, then any fiscal stimulus will
simply lead to an overall fall in GDP – this could happen if a rising fiscal debt level
causes a massive reduction in the level of confidence that the public has in
government.
5
d) True; trade with other countries can restrict the ability of a domestic fiscal
stimulus package to have the desired effect during a recession. With trading
partners, increased spending because of the stimulus could actually be on goods
and services produced outside of the domestic economy, in which case the
potential benefits of the stimulus package are leaking out of the domestic
country. Could talk about case study in text, i.e. France and Germany
e) True; current borrowing by government in order to support the economy is at
record levels. This increased spending by government has taken place at the
same time that the economy has shown to be shrinking, i.e. GDP shrunk by 25%
over a space of two months in the early days of the pandemic. With total national
debt increasing, and the level of GDP lower given lockdown(s), the debt-to-GDP
ratio will be much higher than it was before. This is also evident from media
reports over the past 8 months or so. Feel free to add in distinction between SR
and LR effects.
QUESTION 3:
The Great Depression refers to a period of time (during the 1930s) when output and
employment fell sharply across many countries around the world. The crisis of the Great
Depression inspired Keynes’ concept of ‘Aggregate Demand’, and led to an increased role
played by government in an economy.
The following events took place at the time:
(i) A stock market crash on 24 October 1929 led to a massive collapse of asset
prices in the US.
(ii) There was a drop in future profit expectations due to pessimism and uncertainty
within the markets.
(iii) Failure of the banking system occurred as loans could not be repaid, and access
to credit shrank.
(iv) Prices started to fall leading to periods of deflation, which increased the real
value of household debt.
a) Provide a brief explanation of how each of these events led to a decrease in aggregate
demand during that time. Be sure to highlight, in each case, the particular
component(s) of aggregate demand being affected, and why.
b) Use the multiplier model to illustrate (and discuss) how these decreases in aggregate
demand led to a fall in output and employment.
Answer:
a) (i) The fall in asset prices after the stock market crash led to a fall in household
expected wealth (decrease in their net worth). This implies their expected wealth
was now lower than target therefore cut back on consumption (↓c0) in order to save
more, this decreased aggregate demand.
6
(ii) A decrease in profit expectations and increase in uncertainty and pessimism
could lead to a vicious cycle suggesting a decrease in investment (↓I) and thus
aggregate demand.
(iii) Small firms and households lost their access to credit which further curbed
investment (↓I) and spending in the economy (↓c0).
(iv) The problem with deflation is that it increases the real value of debt.
Households, faced with higher debt, cut back on purchases and many debtors
became insolvent. When prices fall (deflation), households postpone the purchase of
durables, which further reduces spending (↓c0) and thus aggregate demand.
b)
The main components of AD affected relate to c0 and I. Both fell as a result of the answers
provided in part (a). Initial equilibrium occurs at point A. As financial wealth fell,
households were now below their target levels of wealth and we see a fall in c0. Decreases
in profit expectations cause Investment to fall as uncertainty and pessimism enter the
markets. Failure of banking system also caused credit to ‘dry-up’ leading to a further
decline in c0 and I. With deflationary pressure and household debt rising, households cut
back further on c0. We end up at a point on the above graph such as C.
—END OF MIDTERM PREPARATION PAPER—
INDICATIVE SOLUTION PAST PAPER.
HERE, YOU CAN SEE WHAT WE ARE EXPECTED TO ANSWER.
THESE ARE NOT THE SAME TOPICS
2
Turn over
Answer question 1 and any 3 out of 4 remaining questions.
Question 1 is worth 28 marks and all others are worth 24 marks.
1 – Consider the WS/PS model developed in class to explain how the level of employment relates
to the real wage:
Using the above diagram as a reference, provide answers (with illustrations, if relevant) to the
following questions:
a) Which combinations of real wage and unemployment (letters A to E) are unlikely to
be observed in real life? Why? (5 marks)
Any point below the WS curve is not feasible (point A) because workers will not have an incentive
to work (so they will shirk) – students should explain briefly why.
Points C and E, although technically feasible, are unlikely to be observed in real life. At point C,
the firm is paying too much to motivate workers (thus reducing their profits) – workers would accept
a much lower wage (D) for that same level of employment so the firm would not choose to pay C
over D. At point E, the mark-up (profit margin) of the firm is too low and the firm could increase
their profits by increasing prices (and thus reduce the real wage to point B for that same level of
employment).
Question 1a Fail (0-20) Poor(21-39) Average(40-59) Good(60-69) Excellent(70-100)
Identification of
unfeasible
combinations
Does not define
unfeasibleallocations
Does not define correctly
unfeasible allocations or
mistakes are made
Identifies correctly
unfeasible
allocations
Identifies correctly
unfeasible
allocations and
explains why
Identifies correctly
unfeasibleallocations
and explains why
perfectly
b) Why does the wage-setting curve slope up? Why is it convex? (5 marks)
E .
C .
B
D .
A .
3
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Students are expected to provide an explanation as to why WS is upward sloping and convex. This
can be by explaining briefly figure 8.5 and explain how different points of the WS curve represent
tangency points of best response curves at different unemployment rates and the highest
(steepest) possible isocost line which represents the minimum feasible cost for the firm. The
explanation of why the curve is convex is rather subtle and most students are unlikely to
understand it: The best response curve is concave suggesting diminishing returns to effort (at low
levels of wage, a small increase in real wage will lead to massive increase in effort but that effect
will be smaller and smaller as we move to higher levels of real wage). This means the relationship
between real wage and effort is not linear and thus the relationship between real wage and
employment is not linear either (when unemployment is high (WS is relatively flat), a small increase
in real wage will attract a lot of new workers but when unemployment is low (WS is very steep in
this area), new workers will demand a much higher increase in real wage to join the labour market)
Question 1b Fail (0-20) Poor(21-39) Average(40-59) Good(60-69) Excellent(70-100)
Upward sloping WS
curve and convexity
Does not answer or
gives wrong answers
completely
Does not explain or gives
wrong answer as to why
WS is upward sloping and
convex
Basic explanation
is given as to why
WS curve is
upward sloping
but not explains
convexity
Correctlyexplains
why WS is upward
sloping and explains
correctly why it is
convex
Gives an excelent
explaination as to
why WS is upward
sloping and explains
very well why it is
convex
c) Why is the price-setting curve a horizontal line? (3 marks)
This can be answered quite easily by explaining that the PS curve is set at w
= (1 − ) which is
p
obviously liner and thus a straight line.
Question 1c Fail (0-20) Poor(21-39) Average(40-59) Good(60-69) Excellent(70-100)
PS curve as a straight
line
Does not answer or
gives wrong answers
completely
Does not explain or gives
wrong answer as to why
PS is a straight line
Basic explanation
is given as to why
PS is a straight
line but does not
explain well
Correctlyexplains
why PS is a straight
line and gives a
goodexplaination
Gives an excelent
explaination as to
why PS is a straight
line
d) The Covid pandemic has impacted the economy greatly in most countries. Show
(and explain) how the impact of Covid is likely to affect the diagram above (assume
pre-Covid, the economy was at point B). (4 marks)
Answers will vary but students should explain that unemployment is likely to increase and because
both PS and WS curves are likely to move down. The reduction in demand is likely to increase
competition and thus reduce the markup (thus moving PS curve down) and a lack of job
opportunities is likely to reduce the reservation wage of workers and therefore we will move down
along the WS curve to a lower equilibrium point. Answers should also be considered whereby a
student suggests that WS curve shifts providing their give a good explanation and take into account
the effect of the furlough scheme on this setting.
e) Would workers prefer point D over point C? Why/Why not? (2 marks)
No. Workers will always prefer C over D as it provides a higher real wage for the same level of
unemployment.
4
Turn over
Question 1d, 1e Fail (0-20) Poor(21-39) Average(40-59) Good(60-69) Excellent(70-100)
Identification of
whether one point is
preferable to the other
Does not explain
whether one point is
preferable to the other
Does not correctly explain
whether one point is
preferable to the other
and/or does not provide a
goodexplanation
Identifies correctly
the combinations
that are
preferable and but
does not provide
goodexplanation
Identifies correctly
the preferable
combinations and
provides good
explanation
Identifies correctly
the preferable
combinations and
provides an excelent
explanation
f) Would firms prefer point A over point B? Why/Why not? (2 marks)
Yes/No, depending how students answer. (YES) Point A provides firms with lower costs (because
they pay a lower wage) but (NO) A does not provide the necessary incentive for workers to put in
the necessary effort to work well and hard so ultimately point A would not be feasible.
Question 1d, 1e Fail (0-20) Poor(21-39) Average(40-59) Good(60-69) Excellent(70-100)
Identification of
whether one point is
preferable to the other
Does not explain
whether one point is
preferable to the other
Does not correctly explain
whether one point is
preferable to the other
and/or does not provide a
goodexplanation
Identifies correctly
the combinations
that are
preferable and but
does not provide
goodexplanation
Identifies correctly
the preferable
combinations and
provides good
explanation
Identifies correctly
the preferable
combinations and
provides an excelent
explanation
g) Imagine the economy suffers a shock that puts it at point C. Is that point a Nash
Equilibrium? If yes, explain why? If no, explain how the economy would adjust to a
Nash equilibrium? (7 marks)
C is not a Nash Equilibrium because WS is not equal to PS. Wages are too high for that level of
unemployment and thus firms will have an incentive to lower wages without fearing losing their
workers thus moving to a point along the WS curve below B. The equilibrium will then slowly move
along the WS curve upwards until it reaches B. Below point B (but on WS curve), firms will have
an incentive to reduce prices to try and capture more consumers and thus will increase the real
wage, W/P.
Question 1g Fail (0-20) Poor(21-39) Average(40-59) Good(60-69) Excellent(70-100)
Identification C and
not a Nash equilibirum
and explain
adjuctment path to B
Does not explain that C
is not a Nash efficient
Does not correctly explain
that C is not a Nash
Equilibrium and/or does
not explain how the
economy will move from C
to B
Identifies correctly
that C is not Nash
a but does not
provide good
explanation as
how the economy
moves from C to B
Identifies correctly
that C is not Nash a
and provides a good
explanation as how
the economymoves
from C to B
Identifies correctly
that C is not Nash a
and provides an
excellentexplanation
as how the economy
moves from C to B
2 – Consider the case of two UK companies that sell similar products but face very different price
elasticity of demands. Firm A, based in Axminster, faces a very inelastic demand curve whilst firm
B, based in Beaworthy faces a very elastic demand curve. Please draw your own diagrams and
answer the following questions:
a) Assuming the two firms share the same isoprofit curves, which company will sell a larger
quantity? Why? (4 Marks)
5
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Answers will vary but we would expect some form of diagram like the one above. If both companies
share the same isoprofit, it is clear that company B (more elastic than A) will sell a higher quantity.
Firms with a steeper demand curve will enjoy more monopolistic power and are able to charge a
higher price (and thus sell a smaller quantity) to achieve the same level of profit than B.
b) Assuming the two companies face an identical upward sloping marginal cost curve, which
of the two firms profit maximizing price will lead to a larger deadweight loss? Why? (5 Marks)
Answers will vary but we would expect some form of diagram like the one below. It should show
that DWLA > DWLB. This is consistent with the fact that firms facing more inelastic demand behave
in a more monopolistic manner and therefore will create a larger DWL.
c) Consider that the government decreases the value added tax (VAT) by 5% to try and
stimulate the economy. What changes will occur within the market for both firm’s products?
Draw how this affects the diagram you drew in a) above and state your assumptions. What
does this change imply? (5 Marks)
6
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Answers will vary but we would expect some form of diagram like the one below. Students also
need to state their assumptions (e.g. whether firms will absorb the increase fully or partially or pass
it on to consumers fully or partially) – this question is similar to the question of Task 1 d) in Tutorial
7:
My Assumption: The decrease in VAT is split between the firm and customers as the firm shifts
some of the savings onto the consumer. The demand curves thus becomes slightly flatter as the
lowest price decreases, while the maximum quantity demanded increases. The firm faces slightly
lower costs which suggests a higher isoprofit curve. Equilibrium price and quantity increase, and
the overall effect is a increase in profits as the firm is now, not only on a higher isoprofit curve (only
drawn for B not A as to not crowd the graph) given lower costs, but also faced with higher profits
from an increase in P and quantity sold. The dashed green line represents the firm B’s new higher
Isoprofit line as costs have decreased.
d) Assume that a new lockdown is announced in Beaworthy but not in Axminster. The
lockdown limits the affected companies opening hours and thus reduces their ability to sell
their products/services. How will that change the diagram you drew in a) above? Why? (5
Marks)
Answers will vary but we would expect some form of diagram like the one below. Only firm B is
affected so everything stays the same for A. One way to show this effect is to draw a new, lower
demand curve for B as shown below. Is B is forced to close its shops, the effect in a sharp drop in
demand, quantity sold and profits.
.
7
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e) If firm A develops a new, improved production process that allows it to reduce the unit cost
of producing its goods, how will that change the diagram you drew in a) above? Why? (5
Marks)
Answers will vary but we would expect some form of diagram like the one below. A new technology
that improves the production process and reduces costs will allow the firm to increase its profits
(same isoprofit curve will represent higher profits now because costs are lower). It will also move
the MC = Supply curve to the right thus increasing the producer surplus.
8
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3 – Consider two individuals, A and B, whose situations are depicted in the diagram below:
Consumption now (£)
a) Are A and B savers or borrowers? Why? (4 Marks)
A is a saver and B is a borrower. This is true because A has an endowment now but not tomorrow
and vice-versa for B. A is indifferent between consumption everything now and borrowing some
money to smooth her consumption and B is indifferent between consuming everything tomorrow
and lending some money to allow her to consume something now. Points A and B represent
optimal points for each of the two, where MRS = MRT.
b) The central bank decides to decrease interest rates to try and stimulate the economy.
How will the situation of both individuals change in relation to the diagram above?
Why? (6 Marks)
An decrease of interest rates will reduce the gap between the two feasibility Fronetiers as both A
and B are going to swivel inside, from the red FF below to the green FF below. Students need to
explain that the impact of a change in interest rate affects the welfare of A and B in opposite ways:
it expands the borrower’s choices but it reduces the lender’s choices – this is a typical conflict of
interest.
110
100
90
80
70
60
50
40
30
20
10
0
. B
. A
10 20 30 40 50 60 70 80 90 100 110 120
Consumption Later (£)
9
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c) Consider a third individual is introduced, individual C. This person is more impatient
that person A and B. What would his indifference curve look like if he was a saver
when comparing to the indifference curve in the diagram above? What would his
indifference curve look like if he was a borrower when comparing to the indifference
curve in the diagram above? (8 Marks)
A more impatient saver will have a steeper indifference curve than the saver, B. and also a steeper
indifference curve than the borrower A. Answers will vary but students could draw a diagram like
the one below to show that C will have a preference for more consumption now over the possibility
of consuming more later… C’s IC are drawn steeper in purple below for both cases depicting a
desire to sacrifice a larger proportion of consumption later for the same consumption now (or viceversa)
10
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d) Assume the borrower in the diagram above, decides to invest the money he borrows
in a new business that will generate a steady income in a year’s time (e.g. 20% return,
which is obviously higher than the interest rate he borrows at). How will his situation
be different (in a year’s time) from the situation depicted in the graph above? (6
Marks)
Answers will vary but students should draw a diagram similar to the one below. The borrower will
be better off as he is moving to a higher IC and is able to increase his/her level of consumption
later for the same level of consumption now.
4 – Use separate diagrams of your choice to illustrate and answer the following:
a) Is credit rationing good or bad for inequality? How? Why? (6 Marks)
Answers will vary but students are expected to clearly explain that credit rationing increases
inequality. Most will probably use a variation of the diagram shown in the lesson:
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But it is also possible to use other diagrams to make this point, for example:
We can explain that credit exclusion prevents people from borrowing to invest and thus does not
allow those people to move up in the IC above.
b) How are the concepts of willingness to pay (WTP) and willingness to accept (WTA)
related to the concept of deadweight loss (DWL)? If the market price increases because
of a new government policy (e.g. increase in taxes), how will the DWL change? (6 Marks)
Answers will vary but students are expected to explain what WTA and WTP is, how it relates to
the demand and supply curves. They are also expected to use a diagram to answer the rest of the
question, for example:
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An increase in tax (if passed on to consumers) will shift the S curve up to S+T and thus reduce
the DWL. Answers will vary if students assume firms do not pass on all the tax (e.g. S curve does
not shift parallel but pivots instead)
c) Can Marginal Social Cost (MSC) ever be equal to Marginal External Cost (MEC)? If yes,
provide an example of a situation when MSC = MEC and explain why that is true. If no,
explain why MSC = MEC is something that cannot occur. (6 Marks)
Not really. The only way this could be true is if MPC = 0 which does not make sense as any
production will have some positive MPC. When MEC = 0, MSC = MPC which would mean that this
product has no MEC, i.e. the production of a good has no externalities like pollution. MSC will
always, however, be greater than MEC because MPC has to be positive. Students could use a
variety of diagrams to explain this, for e.g
d) Does the central bank hold the monopoly on creating money? Why/why not? Show (by
illustrating) what happens to the balance sheet of the central bank when it prints new
bank notes and buys government bonds with this new money. (6 Marks)
No, it does not. Most of the money is created not by CB but by commercial banks when they accept
deposits and make loans (i.e. through the money multiplier). Answers will vary but students should
show a graph depicting the change in the balance sheet of the central bank when it buys (for
example £100 billion of government bonds:
13
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5 – This question asks you to use your own example of a market failure (one that we did not cover
during lessons or in the textbook) and analyse it using the tools you learnt during the course.
Please answer the following questions (illustrate, where relevant):
a) How would you define a market failure? (4 Marks)
Answers will vary greatly but students should explain that a market failure occurs literally when
markets fail (because property rights are missing, institutions are not working well, social norms
are not right and/or contracts are incomplete). Students should then explain that this leads to
markets allocating resources in a Paretto-inefficient way.
b) Present and explain a market failure of your choice (one that we did not cover during
lessons or in the textbook), making sure you specify how it satisfies the definition of a
market failure in a) above. (4 Marks)
Students should come up with their own example and marks are to be lost if they simply recycle
an example from the textbook or class. They should also explicitly explain how their example is a
Pareto-inefficient outcome and why.
c) Why does the market failure you described in b) above occur? Can governments/policy
makers do something to avoid the causes of that market failure? Draw a diagram of your
choice in order to illustrate the effects of your chosen government policy on the market
failure described. (8 Marks)
Answers will vary greatly and so will the diagrams of choice. In any case, the diagram should
demonstrate that the initial outcome is Pareto inefficient and show the effects of a government
policy change. For example, they could show the introduction of a tax to try and reduce the quantity
produced:
d) Is the concept of market failure related to the concept of Nash equilibrium? Why/why
not? Is the concept of market failure related to the concept of Pareto efficiency? If no,
why not? If so, how? (8 Marks)
14
End of Pap
Answers will vary greatly. No equilibrium will be Pareto efficient if the equilibrium is not Nash as at
least one of the players can improve their payoff (or welfare) without anyone else losing
anything by moving to a different (Nash) equilibrium. Therefore, the two concepts are
somewhat related. However, Nash is a concept used in Game theory to find a general solution
to a strategic interaction and Pareto is a measure of efficiency so the focus of the two is slightly
different. Marks to be awarded to the quality of the explanation (and examples) included in the
answer.

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With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

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Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

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Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

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Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

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Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

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Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
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You can contact our live agent via WhatsApp! Via +1 817 953 0426

Feel free to ask questions, clarifications, or discounts available when placing an order.

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