In your submission, remember to include the images of your simulation reports. See the How to Submit a Simulation Report Image document for more information.
Then, reflect on the decisions you made in the simulation and address the following government intervention options in your submission:
Government Tools: Discuss tools available to the government to correct a market failure. Provide examples from the textbook.
Supply and Demand Equilibrium: Describe how government intervention affects the supply and demand equilibrium. Refer to the simulation game to explain your responses.
Consumer or Producer Surplus: Specify which government interventions cause a consumer or producer surplus. Explain how they impact consumer or produce surplus. Provide examples from the textbook.
Economic behavior is more complex than assumed by conventional economic theory. Political economy explains the functioning of government. Behavioral economics ties psychology into human behavior.
Economists assume that individuals make rational decisions. However real people are more complex.
Based on what you have learned in your assigned reading, answer the following questions in your initial post:
What are the human behaviors economists should observe when creating economic models? Example: people tend to find solutions that are good enough, but not the best solutions.
In your responses, comment on at least two of your peers’ posts and share example of how non-rational human behavior can change an economic outcome.
And provide a reference for each paragraph.
