1.A. What is the empirical correlation between per capita income and the share of Government in the economy? Is there a causal relationship between the two variables? Why or why not?

B. List six broad areas of modern government involvement that have important economic consequences. Briefly discuss each one of the areas that is on your list. (Please note that we discussed more than ten broad areas of key government involvement that concern the economy.)

2.A. In the Midwestern United States, where winds tend to blow from west to east, states tend to approve new polluting industries more easily near their eastern borders than in other parts of the state. Explain this tendency using the theory of externalities. Is this is a socially optimal outcome. Why or why not? If not, is there anything that could be done to improve upon this outcome?

B. What are some of the measures that could be taken to reduce the future consequences of climate change? Consider one measure and analyze it in more depth, taking into account of both the economics and politics that the adoption of such a measure would entail.

3. A. The U.S. Great Recession was preceded by a large increase in the price of housing. Explain Mian and Sufi’s economic logic (what they call the levered losses framework) that first led to the housing bubble and subsequently to the Great Recession. In particular, describe how greater leverage might lead to greater reductions in consumption. Along the way define the terms leverage and foreclosure externality.

B. What were some of the policies that had been followed up to the Great Recession that could be held responsible for the housing bubble and other problems that necessitated the bailout of the financial sector? Have all the problems been remedied? If not, why not?

4.A. Over the past century the so-called Welfare state has greatly expanded in rich countries, although it has been recently retrenching in most countries. Briefly describe different areas of social spending and social insurance. Why do you think this expansion has occurred?

B. What are the political and economic ramifications of investing a large part of the Social Security trust fund in the stock market, as has been recently proposed?

5.     Discuss why property rights in land (and property rights more generally) are not easy to establish. How can modern states facilitate the creation and enforcement of property rights in land? How can property rights facilitate the reasonable functioning of markets, again with special reference to land and real-estate asserts? 

6.     A. Consider a chemical factory located next to a river. In the absence of any laws and regulations about discharge into the river, the downstream residents would bear the (external) costs of such discharge. Is this a socially optimal arrangement? Using basic tolls of economics determine whether a profit-maximizing factory would produce more or less than is socially optimal. 

      B. Describe and briefly analyze three different mechanisms or policies that could be used to remedy this externally problem. 

7.    A. How roughly speaking, does U.S spending on health care compare to other rich countries? How do U.S health outcomes compare to the same countries? 

     B. What are the main ingredients of the Affordable Care Act (ACA, also known as Obamacare)? Which of these ingredients, if any, do you think are either politically or economically problematic? Do you think recent proposals that have circulated will remedy the problems? 

Complete 3 page APA formatted essay: The Abolition of Slave Trade.

The slaves were taken to farms growing cotton, tobacco among others. The Slave trade was very prevalent, and many of the American people contributed to the slave trade especially the settlers.

A Slave trade is an important part of the history of America since its impact has affected America greatly. The descendants of slaves are still in America and form part of the American populations. They are American citizens. America was the heart of the slave trade where the slaves were brought from all sides of the continents under the British protectorate. Various other nationalities form part of the American society like the Asians. Most of the people were sold to the slave traders or forceful taken by the slave traders. The slaves contributed greatly to the world war though not of their free will.

The abolition of the slave trade was to reduce and remove completely the injustices meted on the Africans who were brought to the shores of America through the Atlantic. They were not treated humanely and therefore were treated as animals. If a slave misbehaved, he or she was beaten like an animal and denied food. The harsh treatment led to a split between the American colonies. They had different interests especially the north did not condone slave trade while the south condoned. Even the passing of the law to abolish slave has halfhearted participation by the South. Slaves who had families were sometimes separately from their spouses especially where they were sold to other owners. The separation of families led to many problems especially with the children who could not be raised by both of their parents. The children were sometimes sold and hence taken away from their families. The slaves had not right to their freedom but belonged to their masters almost forever. The heartless handling of the slaves and the cruelty meted upon them led to an outcry by some congressional representatives. The slaves had no voice and therefore kept silent under while