How would you determine whether there is too much,too little or just about the right amount of redistribution in a particular country?

How would you measure the extent to which public policy in a particular country is redistributive?

How would you determine whether there is too much,too little or just about the right amount of redistribution in a particular country?

Useful textbooks:

Barr, N. (2012). Economics of the Welfare State. Oxford University Press [there is a new 2020 edition, but all readings refer to the 2012 version. There is also an older 1998 edition. Any version is fine to use.]

Connolly, S. and Munro, A. (1999). Economics of the Public Sector.

Gruber, J. (2019) . Public Finance and Public Policy 6th edition. [older versions of this textbook are also fine]

Myles, G. and Hindriks, J. (2013). Intermediate Public Economics.

Describe the three possible effects on the costs of the factors of production that expansion or contraction of a perfectly competitive industry may have and illustrate the resulting long-run industry supply curve in each case.

PERFECT COMPETITION IN THE LONG RUN

L E A R N I N G O B J E C T I V E S

1. Distinguish between economic profit and accounting profit.

2. Explain why in long-run equilibrium in a perfectly competitive industry firms will earn zero eco-
nomic profit.

3. Describe the three possible effects on the costs of the factors of production that expansion or
contraction of a perfectly competitive industry may have and illustrate the resulting long-run
industry supply curve in each case.

4. Explain why under perfection competition output prices will change by less than the change in
production cost in the short run, but by the full amount of the change in production cost in the
long run.

5. Explain the effect of a change in fixed cost on price and output in the short run and in the long
run under perfect competition.

Explain the concepts of increasing,diminishing, and negative marginal returns and explain the law of diminishing marginal returns.

PRODUCTION CHOICES AND COSTS: THE SHORT RUN

L E A R N I N G O B J E C T I V E S

1. Understand the terms associated with the short-run production function—total product, aver-
age product, and marginal product—and explain and illustrate how they are related to each
other.

2. Explain the concepts of increasing,diminishing, and negative marginal returns and explain the
law of diminishing marginal returns.

3. Understand the terms associated with costs in the short run—total variable cost, total fixed
cost, total cost, average variable cost, average fixed cost, average total cost, and marginal
cost—and explain and illustrate how they are related to each other.

4. Explain and illustrate how the product and cost curves are related to each other and to determ-
ine in what ranges on these curves marginal returns are increasing, diminishing, or negative.

Explain the notion of the marginal rate of substitution and how it relates to the utility maximizing solution.

INDIFFERENCE CURVE ANALYSIS: AN ALTERNATIVE APPROACH TO UNDERSTANDING CONSUMER CHOICE

L E A R N I N G O B J E C T I V E S

1. Explain utility maximization using the concepts of indifference curves and budget lines.

2. Explain the notion of the marginal rate of substitution and how it relates to the utility maximizing solution.

3. Derive a demand curve from an indifference map.

Distinguish between private goods and public goods and relate them to the free rider problem and the role of government.

MARKET FAILURE

L E A R N I N G O B J E C T I V E S

1. Explain what is meant by market failure and the conditions that may lead to it.

2. Distinguish between private goods and public goods and relate them to the free rider problem and the role of government.

3. Explain the concepts of external costs and benefits and the role of government intervention when they are present.

4. Explain why a common property resource is unlikely to be allocated efficiently in the marketplace.

In what way does scripture influence our decision to work,either in the marketplace or in home production?

“GDP measures the market value of the goods and services a nation produces. Unpaid work that people do for themselves and their families isn’t traded in the marketplace, so there are no transactions to track. Surveys asking people how they spend their time can be used to estimate household production. But the United States only began collecting these data annually in 2003, and many countries have never done a nationally representative survey. The lack of reliable data influenced the decision to leave household production out of GDP in the internationally accepted guidelines for national accounting.“ https://www.bea.gov/help/faq/1297

In this threaded discussion, complete the following:

Begin your discussion with a definition of Gross Domestic Product. Be sure to include a definition of GDP and a statement of the size of GDP in the most recent year for the United States.

Locate and incorporate outside research that gives evidence and explanation of the value of home production that is not included in GDP. Some areas to research could include watching your own children compared to hiring someone, doing your own lawn care, fixing your own car, doing your own housework, etc.

During the pandemic, many people worked from home and decreased activities in the economy. Do you believe this caused an increase in GDP or a decrease? Explain how you reached this conclusion.
Integrate biblical insights into your discussion thread. In what way does scripture influence our decision to work,either in the marketplace or in home production?