Category: Economic Concepts

7 Answer to Question 2 The Coase theorem, developed by economist Ronald Coase, posits that when property rights are clearly defined and trade is possible at low transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of these rights (McDougall, 2017, Week 2). Though the theorem is said to provide attractive solutions on how the private market can effectively deal with various externality problems, specifically environmentally related problems, this proposition will discuss the contextual issues that can arise with Coasian remedies.  Ultimately, this paper will stipulate that the Coase theorem, like any other economic or policy theory […]

essay:The Political Economy of Morality essay There is a large gap between the performance of markets and the publics approval of markets. Despite the clear superiority of free markets over other economic arrangements at protecting liberty, promoting social cooperation and creating general prosperity, they have always been subject to pervasive doubts and, often, outright hostility. Of course, many people are also skeptical about government. Yet when problems arise that can even remotely be blamed on markets, the strong tendency is to “correct” the “market failures” by substituting more government control for market incentives. Recent evidence of this bias is healthcare […]

IntroductionThe main purpose of this report is to analyse the article based information as the article issued by the International Monetary Fund (IMF). The article is about to the increase in the “new duty and land tax surcharges for foreign buyers of land in Australia”.  It includes the main message from the Clayton UTZ article. Along with this, the economic concepts are also discussed with reference to given article information. In this article, Victoria, Queensland and New South Wales’s tax duty is evaluated in order to determine the impact of surcharges. In addition to this, the Melbourne’s housing prices are assessed in context of overvalued. Furthermore, the impact of surcharges over the residential property of Victoria is also determined in context of consumer surplus, housing equilibrium and total surplus. On the other hand, the housing policies are also discussed in relation to develop the housing market with the positive impact over the economy.  Question 1:The article is presented by the Clayton UTZ and the main purpose […]