Economic Principles: Impact of NAFTA, Carbon Taxes and Political Ties on Economic Welfare

Running head: ECONOMIC PRINCIPLES
Economic Principles
Name of the Student
Name of the University
Course ID

ECONOMIC PRINCIPLES1
Table of Contents
Task 1: A bounty on the toad.....................................................................................................2
Answer a.................................................................................................................................2
Answer b................................................................................................................................2
Task 2: Economic incentives and international drug trade........................................................2
Answer a.................................................................................................................................2
Answer b................................................................................................................................4
Answer c.....................................................................................................................................5
Answer d....................................................................................................................................6
Answer e.................................................................................................................................7
Answer f.................................................................................................................................7
Task 3: Political ties and economic welfare...............................................................................8
Answer a.................................................................................................................................8
Answer b................................................................................................................................9
Task 4: Can carbon taxes curtail carbon emission...................................................................10
Answer b..............................................................................................................................12
Answer c...............................................................................................................................12
References................................................................................................................................14

ECONOMIC PRINCIPLES2
Task 1: A bounty on the toad
Answer a
The bounty scheme offering a fixed dollar amount for each cane toad killed is likely
to increase the numbers of cane toads killed. With the expectation of obtaining the bonus or
bounty people will be more interested to kill cane toad (McKenzie and Lee 2016).
Answer b
The bounty is expected to lower the cane toad population. The bounty given to kill the
cane toads will assist pastoralists and farmers to recover some portion cost for killing toads.
The bounty works as an incentive to conduct destructive work than would otherwise occur to
kill cane toads (Cowen and Tabarrok 2018). The bounty therefore should necessarily reduce
the population of cane toads. There are however arguments against such bounty scheme. This
kind of policy is easily vulnerable to fraud, exploitation and misinterpretation.
Task 2: Economic incentives and international drug trade
Answer a