Microeconomics NIDA | Course Paper

NIDA FATIMA/231520316

MICROECONOMICS (D)

ASSIGNMENT NO 1

Question 1)

One of the trade-offs that I faced before in my life is when I had to make a decision about what

I want to do after A level. I wanted to take either a six months or a 1 year gap before I stepped

into University life. I needed some time for myself before actually starting practical life. I

wanted to do a part time job, something more of an online job just to know what it means to

earn and have some working experiences. These were the limited opportunities I had. Not

taking any gap and starting University right after meant I would have to give up the chance to

earn money and gain some experience. I ended up starting University right after A level

because of the fear of staying behind and missing out. I gave up on the time I would have

gotten only for myself, earning some money, and work experience. This was the opportunity

cost of going to a University.

Question 2)

INCENTIVES

DISINCENTIVES

Subsidies to Agriculture sector.

Strict law enforcement on harassers, strict

punishment for them, to make a safe

environment for women to come out and

work.

Free education for women till 6th grade or

matric.

An additional amount to be charged on taxes

that are not paid.

Maintenance of the stability of northern areas

of Pakistan to attract Tourism

Strict law enforcement against people sitting

at homes, not willing to work.

Tax reduction in industrial zones

Govt should tell its citizens to reduce the sugar

consumption after giving them awareness of

the health risks and benefits. Sugar should

then be exported to countries with a higher

exchange rate.

Facilities for the disabled and women to run

home based businesses.

Govt should provide less privileged women of

rural areas with machinery at home, so that

they can contribute to the textile industry of

Pakistan.

Heavy fines on traffic rules violation.

Question 3)

‘Trade can make everyone better off’

Trade involves exchange of goods and services. Individuals, companies, and nations that

engage in trade become better off because they meet each other’s needs. Today the world is

facing Corona-virus pandemic. Even the richest countries, with the most advanced healthcare

systems have given up. On the other hand developing countries have to face the outbreak and

deal with economic issues at the same time. In the current scenario of trading masks, soaps

and ventilators with the countries in need, the only party that would get the advantage is the

one producing and selling because any country would end up trading either for the

benefit/profit by selling these ‘high in demand’ products or the ones buying due to need. Even

though we should take advantage of every economic opportunity but keeping in much mind the

current situation, humanity comes first. Although, trading in this time would provide the ones

in need with these necessities, but eventually it would be a loss for them. Because if these

countries were rich or well enough they would not be in ‘need’. Instead of trade, AID seems to

be the more suitable option. So, that the ones in need would be able to spend that money on

their people instead of trade.