Economics: Discussion Questions

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Discussion Questions. 1. In your opinion, do the data presented in Table 6-1 refute the “water is different” philosophy? In my opinion, the data presented in Table 6-1 refutes the “water is different” philosophy. From Table 6-1, we can find individuals used much water under the flat-rate system than they did under the metered-rate system. Under the flat –rate system every route used substantially more than the ideal amount of water, whereas under the metered system six of the eight routes used less than the hypothetical ideal. Why this happened? When people use water under the flat-rate system, they don’t care about how much water they are using, because they will pay the same amount for the bill. Even sometimes they are wasting water. But…show more content…
Evaluate the following: “although taxpayers foot the bill for federal water sold to farmers at subsidized prices, they also eat the crops grown with that water. Because the crops are cheaper due to the subsidized water, taxpayers get back exactly what they put in, and so there is no waste from having subsidized water for farmers.” Would you give the author of this quote an A or an F…show more content…
For instance, if our famers don’t have subsidized water, assume the same crops amount needs for the people, the famers need to spend more cost to get the products, and the famers need to raise the product price to sell. If the product price raised to a high end point, the people may not eat those crops and other countries crops may get in the local market, and the local famers will lost the customers and those local famers business workers may lost jobs; this circular flow because the mistake from the governments will let a lot of local people lost job, than they don’t spend money because they don’t have income, and it end up to lowers our GDP and bad to our economics if we stop the subsidized water policy. Thus, I give an A of this quote in economics 4. During the drought that plagued California in the late 1980s and early 1990s, farmers in California were able to purchase subsidized water to irrigate their crops, even though many California homeowners had to pay large fines if they watered their lawns. Can you suggest an explanation for this difference in the treatment of two different groups of citizens within the state of
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