3. For this exercise, read the SIPA Case Consortium at Columbia case study called "Grow Your Own? Rice Self-sufficiency in Timor-Leste" available on courseworks.

For some of the policies discussed in the case (either in place or proposed)2 answer the follow-ing questions:

(a) Who are the people that benefit from the policy?

(b) Do you know how much this policy cost? Which information do you need to figure it out?

(c) What is the simple economic model to discuss the policy. Use the model that you wrote to re-examine the questions above, that is

i. Who benefit from the policy, how much?

ii. How much the policy cost?

iii. How cost and benefit compare?

(d) Often in our class, we saw that certain economic policies can be considered "inefficient"?Do you think that this is the case for the policy discussed? Explain. Can you think of a policy that benefit the same people and it is more efficient? Explain

(e) What do you think it is the economic rationale for the policy? Is there a market failure? Is there a goal of redistribution of resources/reduce inequality?