6.03 Module Six Project—Research Chart
Consider all possible solutions or alternatives.
1. Give three possible solutions to the economic issue you are investigating. 2. Why would some people oppose the solutions you have chosen? 1. If the residents have to relocate then no labor work would have to be done but you would have budget concerns since the corporation is paying to relocate these people. If the business just pays the local residents then the budget would be a factor, but sure it would be the easiest one since it's a big corporation. If the business moves them both labor and budget would be factor in this project, the corporation would have to find a new lot than rebuild. 2. Business owners would probably oppose to this because they thought they've found a great lot to expand their business but then finding out they have a major setback due to complaining residents. Calculate the consequences of these solutions—both intended and unintended at all levels of the economy. 1. What positive or negative externalities does this issue present at each sector of the economy? Refer to your circular-flow diagram. 2. What incentives do individuals, businesses, and government have to act on each possible solution? 3. What are the externalities, both positive, and negative, that could result from each possible solution? 1. This would be negative at all sectors of the economy. If the business doesn't get to build there, then they won't make money, and if they don't make money nor does the government on taxes nor do residents get a nearby supermarket. 2. Relocate, offer money to residing residents nearby and relocate some of the affected residents. 3. By giving people jobs, a Wal-Mart has food imported from all over the world. So we'd need truck drivers, people that package the food, people that collect the food, etc.
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