Economics Coronavirus Assignment

The purpose of this assignment is to get you to “think like an economist” about the economic logic of policy interventions related to the novel coronavirus. Your task is to use the tools of the course to answer the questions below. For each prompt, there is a specified word limit that you may not exceed. You will be evaluated on the quality of your reasoning and the degree to which you faithfully apply relevant concepts of the course to the hypotheticals listed below.

You may discuss this assignment with other students, but you must answer with language that is completely your own, so do not share any text/sentences/phrases with each other.

Don't use plagiarized sources. Get Your Custom Essay on
Economics Coronavirus Assignment
Just from $13/Page
Order Essay

 

Part 1—Vaccines against the coronavirus are currently in scarce supply. In the US, the vaccine is being given to people by priority tiers that depend on occupation and age. Some have argued that it would be more economically efficient to allocate the vaccine by a willingness to pay.

Suppose that 80% of the vaccine continued to be distributed according to the current system, but the remaining 20% of the vaccine supply was separately allocated via an auction under which people could bid an amount that they would be willing to pay, and those vaccines would go to the people with the highest bids.

 

Prompt 1.a (150-word limit, 10 points) Claim: The 20% of vaccines distributed through auction would be allocated in an economically efficient manner from the point of view of society. Evaluate this claim.

 

Prompt 1.b (150-word limit, 10 points) Some worry that it would be unfair to allocate vaccines by auction because the rich might get all the vaccines. In response, others suggest that we could randomly allocate permits that give someone the right to get a vaccine as part of the 20% allocation, but they would be able to sell this permit to another person if they wanted. Claim: The vaccines allocated in this way would be allocated both efficiently and fairly. Evaluate this claim.

 

 

Part 2—In the US, mask-wearing became a controversial issue among some groups of people. Consider the dilemma of an Uber driver transporting a passenger who doesn’t want to wear a mask. Assume that Uber requires all drivers to wear masks, but they are debating option A (masks are mandatory for passengers) and option B (masks are voluntary for passengers).

(Note that, if the passenger has a strong enough will to pay to avoid wearing a mask during a given ride, then it is theoretically possible that the efficient outcome for society is for the passenger to not wear a mask.)

 

Prompt 2.a (75-word limit, 5 points) Suppose that Uber adopts a policy that masks are mandatory for passengers, but a passenger and a driver reach an agreement under which the passenger gives the driver an extra $5 tip in exchange for not wearing his/her mask. Claim: This deal represents a Pareto improvement for society as a whole. Evaluate this claim.

 

Prompt 2.b (75-word limit, 5 points) Claim: As long as the passenger and driver are able to make a side agreement that Uber cannot observe, we can expect them to reach the outcome that maximizes their own welfare regardless of which policy Uber chooses. Evaluate this claim.

 

 

Part 3—Suppose it were possible to map all COVID-19 infections so that for every person infected, it is possible to determine the person who caused their infection. It would then be possible to levy a tax for infection caused at some tax rate t. For example, if Alice caused 8 people to become infected, she would have to pay the government 8*t.

 

Prompt 3.a (100-word limit, 10 points) Claim: If we implemented that tax, at say t=500, this would lead to a cost-effective mitigation of the spread of the coronavirus. Evaluate this claim.

 

Prompt 3.b (100-word limit, 10 points) Claim: Imposition of this hypothetical infection tax is not only cost-effective but also it would lead to the socially optimal (i.e., what the social planner would pick) allocation of economic activity and mitigation behavior, so long as the government could pick the best available tax rate. Evaluate this claim.

 

Prompt 3.c (100-word limit, 10 points) Claim: If a vaccine was widely distributed, the optimal infection tax rate t would be higher because it is more valuable to society to encourage mitigation when solutions are available. Evaluate this claim.

 

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

As the best, my homework help website in the world, Writersabc.com strives to deliver only high-quality finished papers to all customers. We value impeccable quality and guarantee that we will deliver on that promise more than anything else. We will deliver!
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

Have you received your finished paper but are not satisfied with what our writer submitted? You can initiate our money-back guarantee to get your money back with no strings attached.

Read more

Zero-Plagiarism Guarantee

Writersabc.com is the best my homework help website in the world. At WritersABC, we have a team of certified, tried, and tested writers who work around the clock to ensure that you receive only high-quality, 100% original finished papers.

Read more

Free-Revision Policy

At WritersABC, we guarantee all our customers of the best essay writing service in the writing industry. And that’s precisely what we strive to deliver. As such, we encourage all our customers to utilize our unlimited free-revision policy if you aren’t satisfied with your paper. Don’t accept any paper until you are 100% satisfied with it.

Read more

Privacy Policy

We value the trust that our clients accord us and respect every customers’ rights to personal data protection. We will never share, sell, or rent any information that we collect from you with any third parties. Both your personal and financial information is safe with us.

Read more

Fair-Cooperation Guarantee

We have only gotten this far with the help of our loyal customers and a team of dedicated experts. As the best, my homework help website, WritersABC implores customers to help make our writers’ work easier. Visit our fair-cooperation guarantee for more information on the same.

Read more

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