|Principles of Macroeconomics (Eco 200-800)||Ranjit Dighe|
|Solutions will be posted or distributed by Fri., Feb. 18, 2000||SUNY-Oswego|
A. The city of Oswego recently considered
changing its water-fees policy from a flat-fee policy under which home
owners pay a fixed yearly fee to a new system by which people would be
charged for their actual usage of water (e.g., by the gallon) in their
-- 1. Use economic analysis to explain how a typical person's water usage would be affected if the city adopted the new system.
-- 2. Use economic analysis to explain why your answer would be the same regardless of whether people end up paying more or paying less for their total water usage under the new system.
B. Case & Fair, 5th ed., Chapter 1: #2, 3
C. Chapter 1 Appendix: #2
D. Chapter 2: #1
E. Chapter 3: #8, 9, 10, 13
F. Chapter 4: #5, 7