Puerto Rico Fianace Assingment Help With Solution
The discussion of rent-seeking in this chapter noted that peanuts cannot be grown without licenses. The licenses can be sold to non-fanners, and in fact, many of them am currently owned by firms that have nothing to do with fanning, such as insurance companies. Does this fact affect your view of whether or not it would be fair to eliminate the system of licenses for peanut fanning? Include in your answer a discussion of the price that owners of the licenses have to pay for them.
Members of the European Union (EU) are required to keep their deficits below 3 percent of Gross Domestic Product. Countries that violate the rule can face huge fines. Nonetheless, many European countries have not met the 3 per-cent deficit target and no fines have actually been imposed. On the basis of the US experience with the Budget Enforcement Act of 1990, how effective would you predict the EU deficit limits to be? What kind of behavior would you expect to see EU countries exhibit?
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In 1998, the people of Puerto Rico held a referendum in which there were five choices—retain commonwealth status, become a state, become independent, “free association” (a type of independence that would delegate certain powers to the United States), and “none of the above.” Discuss the problems that can arise when people vote over five options.
In 2005, Kuwaiti women won the right to vote in parliamentary elections. Indeed, women voters now outnumber men voters in Kuwait because women are automatically registered while men have to register on their own. One woman noted, “The Ministers of Parliament used to vote against us; now they are wooing us to vote for them” [Fattah, 2006]. What does this tell us about the validity of the predictions of the median voter theorem?
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