Question 1

(a) Elaborate on the FOUR (4) main functions of money. [16 marks]

(b) Elaborate on the TWO (2) main components of money based on the narrowest definition of money. [14 marks]

Question 2

(a) Explain on the impact of a drop in the discount rate on the supply of money in the market. [15 marks]

(b) Based on your answer above, select an economic problem where that impact would work and explain what happens.

[15 marks]

3. Over the last twenty years, the U.S. economy has experienced its ups and downs, good times and bad times. Using the last twenty years as an example, answer the following questions:

1. Using the last twenty years of economic activity, identify the four stages of the business cycle, citing the periods the U.S. economy went through each stage.

2. Explain how the levels of unemployment, prices, GDP and industrial production changed with each stage of the business cycle. You can use actual data.

3. What were the responses from the Federal Reserve (Monetary Policy) and the Federal Government (Fiscal Policy) over the last twenty years.

How does public policy impact the approach to problem solving?

Consider the following IS-LM model with a banking system:

Consumption:

C = 7 + 0.6Y_D

Investment:

I = 0.205Y − i

Government expenditure:

G = 10

Taxes:

T = 10

Money demand: M^d / P = Y / i

Demand for reserves:

R^d = 0.375D^d

Demand for deposits:

D^d = (1 − 0.2)M^d

Demand for currency:

CU^d = 0.2M^d

This says that consumers hold 20% (c = 0.2) of their money as currency and the required reserve ratio is 37.5% (θ = 0.375). Demand for central bank money (H^d) is the total amount of currency being demanded plus the total demand for reserves. Suppose the price level is P = 1 and that the initial supply of central bank money is $100.

1.Solve for the money multiplier. Explain your work.

2.Solve for equilibrium output and the equilibrium interest rate at the initial supply of central bank money (ie. $100).

3.Suppose that the central bank sells $80 worth of bonds using open market operations. Solve for the new equilibrium output.

4.Solve for the the new equilibrium interest rate after the open market operations and use an IS-LM graph to explain what happened.

How can the money supply affect the interest rate? Explain briefly and show in the graph!

a) The standard economic model of a production function where capital and labor are inputs into production, with both earning a return according to their marginal contribution to the value of output

b) The Marxian approach of production as a labor process, where the value added is distributed between the capitalist and the worker.

What is the most important difference in conclusions drawn from the the two approaches to production?

P_C/P_W < a_LC/a_LW

_{What the reasoning/meaning behind the idea on how the economy will specialize in the production of cheese if the relative price of cheeses exceeds its opportunity cost?}

5. A perfectly competitive firm is trying to adjust to a recent decrease in consumer demand by adjusting their levels of production. The firm has more than enough existing capital to meet any reasonable production levels, so must only consider how much labour to hire. Assume the cost of using this capital is zero. The price of a unit of labour (the wage rate) is z, the quantity of labour used is O, and the price of a unit of output is s. Labour use is transformed into output at a rate of { = ln(O), where { is the quantity of output.

(a) What are the firm’s total cost, total revenue, marginal cost, and marginal revenue functions?

(b) What is the profit maximising level of labour use? How do we know for sure this is the profit maximising level?

(c) How does the profit maximising level of labour use change with wages and prices?

(d) Write down the indirect profit function of the firm, and investigate the eect of increases in s and z upon the value of optimal profits. Are the signs of those eects what you would expect?

(e) Is the indirect profit function concave, convex or linear in price? Is it concave, convex or linear in the wage rate? From your answers to these questions, can you conclude whether the indirect profit function is concave or convex in the vector (s> z)? (f) Assuming that the indirect profit function is convex in the vector (s> z), sketch a contour of the indirect profit function in the space of the output price and the wage rate, and indicate the corresponding better set.

Drawing upon your newly gained knowledge of the current state of citizens’ privacy, civil liberties, and civil rights in the Information Age, where do you see the state of these issues five years from now?

What factors can complicate a sound Marketing approach to a global market? Please explain the possible pitfalls that can arise, and cite the course textbook in your response. Hill, C. W. L., & Hult, G. T. M. (2018). Global business today. New York, NY: McGraw-Hill Education.

including pictures , defining and explaining the use, extraction methods and the contribution of Aggregate mining to the Ontario economy(3 page minimum without diagrams)

please type your answer, Please do not write on the paper and post it

11. Sources of monopoly power

A monopoly, unlike a perfectly competitive firm, has some market power. Thus, it can raise its price, within limits, without quantity demanded falling to zero. The main way monopolies retain their market power is through barriers to entry, which prevent other companies from entering monopolized markets and competing for customers.

Consider the market for tanzanite. The mines for this blue-purple gemstone, found only in Tanzania, are owned by the local government. Given that no one is allowed into the mines without government permission, the market structure for tanzanite highly resembles that of a monopoly.

Which of the following best explains the barriers to entry that exist in this scenario?

a) Legal barriers

b) Increasing returns to scale

c) Control over an important input