• Using consumption function explain the effect of strong exchange rate on investment within the UK economy?

• How can UK economy strengthen GBP and how does this impact aggregate demand and investment?

• Draw and explain the economic models such as consumption function and three equation model.

a. Give three characteristics of a perfectly competitive market. [3 marks]

b. List and explain three types of barriers to entry that may be used in a monopoly. [3 marks]

c. For a monopolist, why is marginal revenue less than price for every level of output except the first? [4 marks]

d. Give the conditions which should exist for price discrimination? [3 marks]

e. Draw a diagram to show the long run equilibrium condition of the perfectly competitive firm [4 marks]   

China's Fifth cyclical Economic (1978-1980)

Need 2000 words with full description.

China's Fifth cyclical Economic crisis(1978-1980)

What type of market is the ‘Superstar’ market referred to by Alan Krueger ? Briefly justify your answer.

a.Carefully explain what is meant by explicit; implicit; and sunk costs. How are they used to calculate accounting profit and economic profit? [5 marks]

b. Explain the relationship between total product, marginal product, and average product. [3 marks]

c. Explain the difference between the short run and the long run. [4 marks]

d. Why is the level of output at which marginal revenue equals marginal cost the profit maximizing output? [5 marks

You have just started up a new company in Nova Scotia. Your company produces software for the “Doctors Online” company which provides medical assessments and treatment recommendations via combination of online doctor appointments and extensive screening questionnaires. You need to invest $200,000 immediately to purchase computer equipment (CCA class number 45 with a CCA rate of 45% and no salvage value). If the anticipated operating costs (excluding your salary) are $15,000 per year increasing at 5% per year (inflation) and the anticipated revenue is $170,000 per year increasing at 3% per year (inflation), what constant amount can you withdraw each year as salary over the 4 year life of the project if you want the company to make 14 % per year (return on your investment)? For this question disregard taxation effect (tax rate = 0).

a) (2 pts) What will be the annual CCA payments for each year?

c) (2 pts) What will be annual costs and revenues accounting for inflation each year?

d) (2 pts) Draw the cash flow diagram with indication of all cash flows including the unknowns.

e)(4 pts) What will be your salary at the desired rate of return %?

f) If the investment is comprised of $100,000 cash and $ 100,000 from a bank loan charging an effective annual interest rate of 4% with annual payments:

i) (3 pts) What will be the annual payments on the bank loan (amortized loan)? What will be the total amount of interest paid to the bank?

ii) (4 pts) What will be your salary at the desired rate of return % in this case.

1.Summarize the relationships among topography, climate, rice cultivation, and population density across East Asia.

2.Where is the Three Gorges Dam, why did China build it, and what are the major problems associated with its construction

Is New Zealand far or close from a steady state economy and what is their depreciation rate?

What are the three balance of payments accounts? Briefly describe them. What is the relationship among the three?

Define uncovered interest parity. What is the relationship among the forward exchange rate, the spot exchange rate, and the interest rate? Suppose the (1-year) interest rate on bank deposits is 2% in Canada and 1.75% in United States. If the (1-year) forward US$–C$ exchange rate is C$1.25 per US$ and the spot rate is C$1.2 per US$, will the C$ depreciation or appreciation against the US$ over one year, and by how much?                                                                    

Suppose you are given the following financial information on January 1, 2020:

Spot $/£ exchange rate (e):                                         $1.20/£

One-year interest rate on dollars (i_US):                       2.0%

One-year interest rate on pounds (i_UK):                      6.0%

Market’s expected spot rate in one year (e^ex):            $1.12/£

1. If a U.K. investor looking for the highest return agrees with the market’s expectation of the future spot rate, should she make an uncovered investment in dollars or simply invest in pounds?
2. If a U.S. firm will be receiving £1,000,000 in one year, and wants to eliminate any foreign exchange risk, what can the firm do in the money markets?
3. A U.S. firm will be receiving £1,000,000 in one year, and discovers that forward contracts are available. Its bank quotes the firm a forward rate of f = $1.15/£? What would the firm do to eliminate any foreign exchange risk using a forward contract?

D. Suppose there is still trading in the spot foreign exchange market today, but the market’s expected spot rate in one year is set at $1.12/£. What is the equilibrium spot rate in the market today at which uncovered interest rate parity holds?

A U.S. investor and an Italian investor are considering investments in the U.S. and the Eurozone. Both investors are quoted the following rates from their banks:

Spot exchange rate (e_$/€):                                $1.10/€

One-year forward rate (f_$/€):                           $1.06/€

One-year interest rate on dollars (i_$):             3.0%

One-year interest rate on euros (i_€):               5.0%

1. Does Covered Interest Rate Parity hold given the rates quoted above?
2. Should the U.S. investor make a one-year covered investment in euros or simply invest in dollars?
3. Should the Italian investor make a one-year covered investment in dollars or simply invest in euros?
4. If Uncovered Interest Rate Parity holds, what is the spot rate expected in one year?

1. Suppose that there are only three people that live in a (very) small town: Eric, Greg, and Katie. The town is thinking of building a park which you can assume is a public good for these three individuals in the town. Based on the individuals’ demand schedules for the park, which are given below, calculate and graph the social marginal benefit curve for the park.

b. Assume that the supply curve for the park is shown in the following chart. Graph this supply curve on your graph from part b. What is the socially optimal size of the park (in acres)?