If we accept that the marketplace is the regulator for those industries where there is no monopoly, do you think that the marketplace makes the same decisions as a regulator? Why or why not? What objectives would a regulator who is regulating a natural monopoly pursue? Are these the best goals? Why or why not?

Use the following information to answer the questions below.

NUT                                                                                                                               250

Exports                                                                                                                          500

Net increase in foreign ownership of U.S.based nonreserve assets                  400

Net increase in U.S. government’s foreign assets                                                  30

Net increase in U.S. private assets                                                                            250

Investment income received in the U.S.                                                                  200

Net increase in U.S. ownership of official reserve assets                                       20

Imports                                                                                                                           600

Net increase in foreign ownership of U.S. reserve assets                                     100

Investment income paid abroad by the U.S.                                                           300

1. What is the current account balance?
2. Does the financial account equal the current account?
3. What is the statistical discrepancy?

1. In the wake of the financial crash of 2008 and ensuing “Great Recession”, Robert Skidelsky, Keynes’s biographer published Return of the Master—strongly suggesting that the economics of JM Keynes is still relevant. Would you, or would you not, agree it is still relevant? Why?

Suppose that the MD = 5E and with its current technology, the firm’s MAC is given by
MAC1 = 200 – 5E.
a) Determine the socially optimal level of emissions E.
b) Determine the emissions tax that would achieve the socially optimal level of emissions.
Now suppose the firm can adopt a new technology that changes is MAC to
New MAC2 = 160 – 4E
Calculate change in costs for the firm from adopting the new technology when:
c) The government uses an emissions standard equal to your answer in (a) above
d) The government uses an emissions tax equal to your answer in (b)
(Assume no change to standard or tax rate after the change in technology)
Now suppose the government adjusts the standard and/or the tax such that MD = New MAC. Calculate the change in total costs for the firm from adopting the new technology when:
e) The government adjusts the standard, and
f) The government adjusts the tax rate

Need help with part e and f

3. You have just been hired as the Labour Relations Coordinator at a public sector organization. Today, your manager has just informed you that the next round of collective bargaining with the union begins on September 1st 2020. She has asked you to put together a comprehensive planning document for the CB process. She wants to see all work tasks, work tasks assigned to people (positions), resources needed to complete tasks and time lines. She suggests that you prepare this planning document in a chart/table/schematic format.

What are the ‘Lessons’ of the Specific Factor Model? Demonstrate this lesson using formal modeling (either graphs or equations).

Briefly explain the difference between Consumer Price Index and the GDP Deflator. Describe in your own words; you can include an exposition of the formula of each, if you wish.

Suppose the CPI in 2016, 2017, 2018 and 2019 are 100 and 110, 115 and 130 respectively. What is the inflation rate between 2016 and 2017, and between 2017 and 2018? How would you interpret the change in inflation rates between 2016 and 2018?

Why might price collusion occur in oligopolistic industries? Assess the economic desirability of collusive pricing.

What are the main obstacles to collusion?

In Economics we differentiate between peoples’ “wants and needs” and their “resources”. Explain what these terms mean and how they are used in understanding economic decision-making.

(a) If your utility is represented by u(x,y) = min(x+2y,2x+y);what do you indifference curves look like?

(b) Given your answer in (a), obtain the MRS (marginal rates of substitution).

(c) Suppose the prices of x and y are px = $3 and py = $1 and you have 100 dollars. What would you choose?

(d) If px decreases to $1; what would you choose?

(e) Use the Slutsky decomposition to decompose the total price effect into the substitution effect and income effect when px decreases from $3 to $1

1.) The competitive firm's demand curve is

a.) unit elastic over the relevant range of output.

b.) perfectly elastic over the relevant range of output

c.) perfectly inelastic over the relevant range of output

d.) elastic above the market price and inelastic below the market price

.

2.) If you were operating a fast-food restaurant, which of the following would represent a fixed cost of production in the short run?

a.) an annual business license fee paid to the local government

b.) wages paid to workers

c.) the cost of electricity to light the restaurant

d.) the cost of paper supplies (napkins, bags, etc.

.

3.) If MR > MC, then

a.) profits will be at their maximum.

b.) the firm is producing too much of the good to be maximizing profits

c.) the firm can increase its profits or minimize its losses by increasing output.

d.) the firm is necessarily incurring losses

Let a perfectly competitive industry have 100 identical firms with a marginal cost curve given by MC = Q/2.

a. Construct the short run industry supply curve with 100 firms.

b. Let the market demand curve be Q = 4000 – 200*P. Find the short run equilibrium price, industry quantity, and firm quantity.

c. This is a constant cost industry with a cost of $8. Will firms be making profits or losses in the short run equilibrium in b?

d. Find the long run equilibrium price, industry quantity, firm quantity, number of firms, and profit for each firm.

Choose one of the candidates who has currently announced (or is rumored to be considering a run) as a candidate for president in 2020. Describe the candidate’s main policy positions and why you would support or oppose this candidate.

What is Cost-Benefit Analysis? Why is it hard to do?