PADM 5006 Exam 1 Fall 2009
Use separate sheets of paper as needed to answer. Please be sure to put your name on your answer sheets, the part of the exam you are answering, and the number of the question you are answering. When done staple together all your answer sheets with this copy of the questions on front and hand them in.
Part I (60 points): Please briefly explain your responses.
Do you see any problem with their strategy? Include a demand & supply sketch in your answer.
2. Do you consider
3. What are some of the major
criticisms of the definition of the poverty line used in the
4. According to the FDA eating about 2 tablespoons of olive oil a day instead of saturated fat can reduce the risk of heart disease. Studies have also found olive oil can lower cholesterol, blood pressure, and blood sugar and reduce the risk of colorectal, breast, prostate, pancreatic, and endometrial cancer. Suppose the California Olive Oil Council (COOC) argues that since olive oil clearly provides significant positive externalities your government agency should provide subsidies for olive oil producers. Please respond to their argument for funds from your budget.
5. What is a shadow price and why would you use a shadow price?
6. What’s the difference between a social insurance program and an income redistribution program? Please give an example of each and explain how the justifications differ.
Part II (40 points): Please explain your responses fully.
some areas of
2. a) What is Social Security?
b) How does Social Security work?
c) Why are some problems with Social Security anticipated?
d) What are some alternatives for dealing with these problems?