People of a non-democratic government would like to change their regime to get rid of non-democratic rulers and replace them by a democracy. Suppose the people’s utility from the non-democratic regime is 0 and their utility from the democratic regime is Dp > 0. However, they may get the democratic regime by revolting. If they revolt, they have to pay a cost of revolution Rp, where Dp > Rp > 0. Note they pay this cost whenever they revolt. The non-democratic leader has (i) a utility of N` if there is both no democratization and no revolution and (ii) a utility of D` if there is democratization and no revolution. Here N` > D` > 0. However, if there is a revolution, the non-democratic leader has a utility of 0 if they insist on no democratization and a utility of D` − C` > 0 if they give into democratization. Suppose the leader can take an action that limits their power in a non-democracy. By taking this action, their utility from no democratization under no revolution falls to N` − K > 0, where N` − K < D`. First, the leader chooses whether or not to limit their power. Then the people choose to revolt or not. Finally the leader observes the choice and decides whether or not to democratize. A. Write down the game. B. Find the subgame-perfect equilibria of this game, by using backward induction. C. Does this game exhibit solve the commitment problem? Explain.

How does the historical institutionalist approach of political economy differ from rational choice approaches?

The blue curve on the following graph shows the tradeoff between security and tourism; that is, combinations of security and tourism above the blue curve are not possible, and those on or below the curve are possible. The vertical axis measures security, defined as the probability that a terrorist is intercepted before entering the country. The horizontal axis measures the number of yearly visitors to the United States, in millions. Suppose that before 9/11, there were 55 million visitors per year, and the probability of intercepting any particular terrorist at customs and immigration was 10%, as indicated by the purple point (diamond symbol). After the 9/11 attacks, a debate is held in Congress. Members of both parties agree that security measures need to be improved. However, there is some disagreement as to how much additional security is needed. Suppose the first bill that is introduced mandates that security be improved so that the probability of catching a terrorist at the border…

You have taken over the Canadian government. As the Dictator, you took on yourself to end the destruction of the environment by your citizens. As a dictator, you are no longer limited by the challenges of democracy and do not require the agreement of the public but you are limited by the limitations of the existing economic system. Explain what policies you would implement. How you expect these policies to solve the problem. By using the relevant Microeconomic models we learned in class throughout the semester, demonstrate how your policies affect the relevant markets. Show the direct impact and the indirect impact (positive and/or negative) on other markets affected by the changes you propose. For each policy: describe your policy, what are you hoping to achieve, what are your assumptions you are making and explain the economic mechanism that is taking place. Demonstrate graphically how it affect the current status in the market. WITH GRAPH PICTURES

Suppose that for Abraham, the income elasticity of demand for movie tickets is +0.25, and for Sarah, the income elasticity is +1.6. Based on this information we can conclude that.

"The President's wife should not run as a candidate to succeed her husband." This is an example of:Response option group a) Normative statement. b) Economic fact. c) Economic principle. d) Positive statement.

Which of the following statements is inaccurate?   Multiple Choice   There is substantial agreement about how and when markets fail.   There is substantial agreement about whether government improves market outcomes.   Voters are quick to blame government meddling for many economic woes.   Ideally, the market mechanism will lead an economy to the optimal mix of output.

One of the principles of economics is that people respond to incentives. Using this principle, discuss how a tax imposed on people who refuse to get vaccinated against COVID-19 virus affects the national level of vaccination coverage.