Economics of Bad Behaviour

by

Business Finance

Sample short answer exam questions

Short answer questions are graded out of six points.

1. Does the death penalty deter crime?

2. What is the externality in the market for alcohol?Draw a market diagram for alcoholic beverages, including private and social cost curves and private and social value curves.Identify the market equilibrium quantity, the socially optimal quantity, and the deadweight loss associated with the externality.What policies do governments use to try to eliminate the externality associated with drinking?

3. How did the prostitution laws in Canada change from 2012 to 2016?What prompted the change in the laws?Who has been made better off and who has been made worse off because of the new laws?

4. What criteria should society use when deciding how much to reduce pollution?

5. What is “insider trading” and why is it a problem?Is the problem worse in Canada or the United States?What evidence do you have to support your assertion about where insider trading is worse?

6. Do economists favour in-kind or cash transfers to help people?Explain two of the three reasons given by Kate Cuff that governments often choose to give in-kind transfers.

Sample essay question

This question was graded out of 12 points:

Obesity rates around the world are rising.Briefly discuss the economic factors that have contributed to these rising obesity rates.What are the pros and cons of instituting a “sugar tax” as a weapon to combat the rising obesity rates?Use evidence from the course content to support your arguments.