Description

Instructions: 

Submit your answers to all questions as a single file on Avenue by 9pm November 13. All questions are worth equal marks.

Question 1: Provide the rationale(s) for market intervention in the context of a policy that subsidizes the purchase of an electric (“green”) vehicle. 

Question 2: Consider a policy that raises the minimum wage (i.e. the price of “unskilled” labor). Provide the rationale(s) for such a type of market regulation. 

Question 3: Explain whether you agree or disagree with the following statement, and why: