where did the recent military crisis happened and what was its affect on business sector?

Consider the following: Suppose that two neighbours with identical nonhomothetic preferences derive utility from the number of flower gardens in their shared community lot, x, and on the number of tomatoes that they eat from their own vegetable gardens, y. The specific form of the utility function is given by: U_i(x,y_i )=x+lny

The price of one flower garden is $1 and the price of a vegetable garden is $2. Each neighbour has a budget of $12.

a) If each neighbour lived in a community that did not have a shared community lot (i.e. had to individually purchase and own both flower and vegetable gardens), what portion of their income would they spend on flower and vegetable gardens, respectively?

b) What utility would they each receive from the allocation in a) above?

c) What is the marginal rate of substitution (MRS) for this utility function? Interpret the meaning of the MRS. Is MRS diminishing?

d) Now, assume the neighbours do, in fact, live in the shared community such that both share and enjoy the number of flower gardens that are available. If neighbour #1 assumes that neighbour #2 will not pay for any flower garden, what will be each neighbour’s utility if neighbour #1 buys the least whole number of flower garden(s) such that he derives utility from the flower garden(s)? Allow for fractions of vegetable gardens.

e) Show that the allocations described in d) are inefficient.

f) Calculate the efficient level of flower garden purchases and that of vegetable gardens.

g) Assume that the neighbour’s split (i.e. 50/50) the cost of efficient number of flower gardens obtained in f) and use the remaining funds to purchase vegetable gardens. Can the neighbours derive any utility from vegetable gardens given nonhomothetic preferences? What utility will each neighbour receive, and is this a Pareto superior solution than your answer in b)? Explain why or why not.

Is it possible to provide health care without rationing? In 1948 every household in Britain received a leaflet stating that the new National Health Service would "provide you with all medical, dental and nursing care. Everyone - rich or poor, man, woman, or child - can use it or any part of it. There are no charges, except for a few special items."

a) This pioneering system of health care provision, which celebrated its 60th anniversary in 1998, was based on the assumption that the quantity of health care that would be demanded at a zero price is finite. The quantity demanded nevertheless overwhelms the quantity supplied at the zero price in Britain and all the countries that subsequently initiated similar systems and found themselves confronted by shortages of health care services. How would a shortage show itself in such a situation?

b) If health care is made available to everyone at a zero money price, and at this price the quantity demanded exceeds the quantity supplied, how will health care be rationed?

c) What system of rationing would you recommend?

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what were the principal elements of economic development of the Americas? how were the economies of USA, Canada, and Latin America different?

1. The button maker’s guild in seventeenth century _________ was ________of cloth buttons.

1. France // hostile to the making

2. England // mystified by the making

3. American colonies // raising tariffs in order to encourage the domestic manufacturing

4. England // unable to finance factories sufficiently large for the making

2. Why is abstraction used in economics?

a. because economics is basically an emotional subject, and one must let one’s emotions determine the best way to run an economy

b. to simplify and objectively look at economic phenomena

c. to give economics a mathematic character, which the author concedes makes it difficult for many students

d. both b) and c) are correct

3. Externalities can be ________ by collective (i.e.) ________ action.

a. enhanced // market

b. internalized // market

c. internalized // government

d. externalized // government

4. What do monopolistic competition, pure monopoly, and oligopoly have in common?

a. They are deviations from perfect competition

b. They lead to better outcomes for the consumer than perfect competition since they are a more realistic way to organize the market.

c. Both of these.

5. Revenue maximization, kinked demand curve and game theory are used to describe which market structure?

a. oligopoly

b. pure monopoly

c. monopolistic competition

d. perfect competition

e. both a) and b) are correct.

6. Collectivized means

a. common ownership, a characteristic of socialism.

b. common ownership, a characteristic of capitalism.

c. giving capitalists and entrepreneurs equal rights to the means of production.

d. both b) and c) are correct.

A company wants to replay a $117,053 debt making $463 quarterly payment for 21 quarters, then one final payment. If the interest is 14 per year, compounded quarter, how much is the final payment?

In this assignment you’ll examine the legal protections for e-commerce. From the readings or from your own research, choose three U.S. laws that regulate the use of the internet for commercial purposes. You can choose laws that protect the consumer, the provider, or both. In your discussion, also include the issue of jurisdiction when conducting e-commerce transactions. Provide an overview of each law and what it’s meant to prevent or protect. Based on what you’ve learned so far in the course, propose at least two legal or technological solutions that might enhance the transaction of business via the internet.

Consider a perfectly competitive firm that produces output using a wellbehaved production function y = f(x1,x2). Let the price of output be denoted by p, the price of input 1 be denoted by w1, and the price of input 2 be denoted by w2.
(a) State the firm’s cost-minimization problem, and draw the solution to the cost minimization problem on a graph.
(b) What are the solutions to the cost-minimization problem? What are these solutions called? Which variables are these solutions a function of?
(c) Which 2 conditions must be satisfied for an input bundle to be considered cost minimizing, assuming an interior solution? Why? Explain your answer.
(d) Derive the firm’s cost function. What role do your answers in part (b) play in deriving the cost function?

The government decides to address negative pollution externalities in a given market by issuing and selling a fixed value of pollution permits. In other words, firms need to pay for the right to pollute by purchasing these permits. Describe what will happen to the price of permits (and why) under each of the following scenarios. Be sure to illustrate your answers with the appropriate graphs depicting any changes taking place in the permits market.

a) The government decides to allow for more pollution by increasing the number of permits issued.

b) New technologies emerge making it easier (and cheaper) to produce while generating less pollution.

c) The economy undergoes a strong expansion and demand for commodities rises as a result.

10. Suppose that a firm finds that its low-productivity workers have a marginal revenue product of $21,000 per year and that its high-productivity workers have a marginal revenue prod- uct of $35,000 per year. The cost of receiving a year’s worth of higher education is $4,000 for a low-productivity worker and $3,200 for a high-productivity worker. (This cost can be thought of as repayment on loans that have been incurred in the process of obtaining the education.) The firm plans to offer a wage of $21,000 to workers without higher education and $35,000 to workers who attain a “certain” level of higher education.

    1. If this firm uses this pair of wage offers and wishes to create a separating equilibrium using education as a separating device, how many years of education should be re- quired to receive the higher wage?

    2. Why does education work as a signal in this instance?

    3. Does education increase the marginal productivity of workers in this instance?

Consider the market for minivans. For each of the events listed below:

→ identify which of the determinants of supply are affected

→ indicate whether supply increases or decreases

→ draw a diagram to show the effect on the supply curve. (Make sure to label the axes.)

a. (0.5 pt) A strike by steelworkers raises steel prices.

b. (0.5 pt) Engineers develop new automated machinery for the production of minivans

Please draw the graph as well

Provide five (5) reasons why product prices are sticky in the short run.