Suppose the optimization problem is to minimize the cost of production c = 3 x + 4 y subject to the constraint 2xy =337.5. Here the cost-minimizing amount of x is ?? , and y is ?? .

The Lagrange multiplier is ?? .

The second principal minor of Bordered Hessian is ?? .

The bordered Hessian matrix is??

What are some of the actions taken by Ken Lay as the CEO of Enron and what were the ethical issues?

Consider the consumption theories

a) Explain the Keynes’ consumption puzzle?

b) How does Modigliani’s consumption theory resolve the puzzle?

c) How does Friedman’s consumption theory resolve the puzzle?

At its simplest level, Keynesian macroeconomics suggests there may be a role for government policy when it comes to the success of the macroeconomy. With this in mind, President Donald Trump passed the “Tax Cuts and Jobs Act of 2017” (TCJA) which went essentially into effect on January 1, 2018. A large part of the long run impact of this policy change depends on the multiplier which in turn depends on the marginal propensity to consume (MPC). As it turns out, you have the most recent and up to date estimates of the MPC and so Donald Trump has sent an aide to interview you about this and your thoughts on the policy change as well.

1. Youre an econometric expert when it comes to the MPC but we have only spent a small time talking about the "TCJA". Explain what it is and what the key provisions are (despite popular belief, Wikipedia seems like a fine source for this).

Markets work well for some goods, but poorly for others. According to the textbook, for which of the following goods or services would markets be expected to work poorly?
A. clean air
B. clean water
C. clean amusement parks
D. Markets would work poorly for all three of the goods or services listed above.
E. Markets would work poorly for both clean air and clean water, but they would work well for clean amusement parks.

The Tragedy of the Commons will be evident when a growing number of sheep grazing on the town commons leads to a destruction of the grazing resource. As a result,
(x) externality could be eliminated if all of the sheep owners received a subsidy payment from government.
(y) the town could auction off a limited number of sheep-grazing permits to correct this problem.
(z) the town could assign land property rights to individual owners to correct this problem.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only
15. Which of the following statements is (are) correct?
(x) If general knowledge is not excludable then it is quite likely that profit maximizing firms in private markets would choose to not supply general knowledge to society.
(y) As with many public goods, determining the appropriate level of government support for the production of general knowledge is difficult because benefits are hard to measure
(z) If technological knowledge is excludable and general knowledge is not excludable, then it is likely that technological knowledge is a “club good” (natural monopoly good) and general knowledge is a public good
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

What current external (foreign) conditions are relevant in deciding the monetary policy instrument for UK (specifically how global or external conditions impact UK)? Provide atleast 5 points

1. How do you think John Stuart Mill would view the most recent world-wide financial crisis? In terms of: What are the factors leading to it, what factors should be in place to prevent it happening again, and what should have been done to correct it?  

How was the governance of the Federal Reserve constructed in order to avoid potential abuse of power and balanced representation? In what ways has the Federal Reserve system worked? In what ways has the Federal Reserve system not worked?

PART; What would you expect economist to predict would be the impact on your life relative to the solar power industry if there were no off shore drilling and no importation of foreign oil?(Hint: The combination of these two changes would reduce the supply of oil in the United States by about 70%)

PART 2: Digging Deeper When disaster strikes, you can count on two things: Looting and Price Gouging. Consider that a major hurricane has struck. Power is out, chaos has ensued. Explain what might happen in terms of the supply of essential goods, such as food and gas. Then discuss how price gouging might result. Compare and contrast price gouging with looting.

What are the different stages of the Lewis two-sector model?

Lucy has just been promoted to a managerial position and given a new office. She is very fond of small Persian carpets and Native American paintings. Her utility function for carpets(x) and paintings (y) is given by: U = 100 * sqrt(xy)

Her company gave her a budget of $7,200. Persian carpets cost $700 each and Native painting costs $500. Using Excel spreadsheet, develop columns for quantity and of carpets and paintings within her budget. Use 0,1,2,....10 carpets as possible quantities. Develop columns of TU, MU, and MU/$ for carpets and paintings and answer the following questions.

At the maximum total utility level, what is the optimal number of carpets she gets and what is the optimal number of paintings she gets?

Describe the process by which the market for capital and the market for land reach equilibrium. As part of your description, elaborate on the role of the stock of the resource versus the flow of services from the resource.

8. Suppose that demand for OVO themed lint rollers is given by

? = 120 – ?.

There are only two firms that produce this coveted product, they both have cost function

?? = 60 + q? 2 , where ? = 1,2 denotes the factory.

Total production of the lint rollers is equal to output from the two firms.

a. [10 marks] Suppose the two firms compete on quantities. Find the Nash equilibrium price and output of each firm. How much profit does each firm make?

b. [15 marks] Suppose that firm 1 gets this innovative product to market faster, so it makes its output decision before firm two. Find the Stackelberg equilibrium price and output of each firm. Are their profits different than in part(a)? If so, explain why.

13. What mistake might a business make if it confuses marginal cost and average cost?

14. How does adverse selection explain why it might be difficult to change the Affordable Care Act?