PROJECT DESCRIPTION—PART 3 Microeconomics.
Research and analyze the effects of the following government policies on the market equilibrium.
Increases in the Minimum Wage
Restrictions on International Trade
Natural Monopolies and Anti-Trust Regulation
When analyzing these policies, include some discussion of the following points when appropriate:
What is the purpose of the policy?
Provide the rationale for the government policy. In this section, discuss how asymmetric information creates a need for the policy.
Note 1: The necessity of the policy should be related to the purpose.
Note 2: A discussion of asymmetric information should include defining how the information is unequal between consumers and producers as well as any adverse selection or moral hazard issues involved.
The welfare of consumers, producers, and society (the winners and losers) before and after the policy.
How does this policy affect the fairness of the distribution of costs and benefits?
Does government intervention improve the situation?
Note: Discuss whether government intervention affected the asymmetric information problem, adverse selection, or moral hazard previously discussed.
Attach a Word document of 750 minimum words with an introduction and a conclusion.
Format: Double line space, Times New Roman, 12-point font Formal references in SPA format must be provided. This submission must be paraphrased in your own words. Adhere to the academic honesty policy. No more than 10% of your document can be quoted. Avoid answering any of the questions with a quote. Quotes should support your discussion instead of answering questions for you.