1. Consider an economy in which there are two industries. The wage income of a worker in one industry is $10, while the wage income of a worker in the other industry is only $4. The government, however, imposes a tax of τ dollars on each high-wage worker and provides a subsidy of σ dollars to each low-wage worker in order to reduce the income differential. The government’s tax revenue is equal to the cost of the subsidies. One-quarter of the workers are qualified to work only in the low-wage industry. The remaining workers are able to work in either industry. These workers choose to work in the high-wage industry if the difference between the after-tax income of a high-wage worker (yH ) and the subsidy-inclusive income of a low-wage worker (yL ) is more than $4. If this difference is less than $4, they will choose to work in the low-wage industry. If it is exactly $4, they do not care where they work, and any division of these workers between the two industries is possible. Find all of the pairs (yH , yL ) that can occur in this economy.

2. Consider an economy like the one above, except that the wages paid in the high-wage industry fall as the number of workers in that industry rises. In particular, assume that each worker’s wage income is w H = 4 + 3/p where p is again the fraction of workers in that industry. The wage income of lowwage workers continues to be fixed at $4. Find all of the pairs (yH , yL ) that can occur in this economy.

1. Name 3-5 types of products that experienced an increase in demand due to COVID-19. Explain why the demand for these products increased.

2. Graph the original demand function for these products and its response (shift) due to COVID-19.

3. Explain how the prices for the products, whose demand increased, will respond in the equilibrium. Explain what needs to happen to supply in order to maintain the prices of these products prior to the increase in demand caused by COVID-19. You may draw a graph to illustrate your point.

1. Name 3-5 types of products that experienced a decrease in demand due to COVID-19. Explain why the demand for these products declined.

2. Graph the original demand function for these products and its response (shift) due to COVID-19.

give three example of how can the Income Inequality Gap in the US be Improved?

Why is it a challenge to utilities to promote energy efficiency? How might decoupling reduce the challenge?

with reference to international marketing research, list and describe 4 problems that are associated with gathering primary data.

1. Describe how Bank of Canada is trying to combat current situation caused by COVID-19. Discuss the pros and cons of this new policy. Please provide proper details of your each argument. (2.5+2.5=5)

A

2. explain the roles of households and firms in the factor market and the product market. Give one example each of a product market and a factor market. (2.5+2.5=5 Points)

3. Remember the concept of aggregate demand (AD) and aggregate supply (AS), what measures can a government take to promote long-term economic growth in the country? Discuss with rational. (5 Points) – NOTE: For this question ignore current situation of COVID-19.

4. Opportunity cost is an important concept in economics, keeping the same in mind, discuss why students generally prefer late morning classes to early morning classes. (5 Points)

5. Discuss the role of automatic stabilizers in current situation caused by COVID-19. What are the pros and cons of these automatic stabilizers in an economy? (2.5+2.5=5 Points)

Suppose a firm operates in a perfectly competitive market where every firm has the same cost function given by:

C(q)=5q²+q+20

Suppose initially the market price is p=31.

How much output will this firm produce?

At the price p=31, how much profit does this firm make?

Now suppose the market price changes. Below what price will this firm shut down? (what is the "shut-down price")

At what price will this firm earn zero profits (what is the "break-even price")?

Suppose the market consists of 20 firms. The market demand is Q_D=602-2p. What will be the short-run equilibrium price?

Suppose the market consists of 20 firms. The market demand is Q_D=602-2p.

What will be the short-run equilibrium output per firm?

Continuing with the previous question:

Suppose the market consists of 20 firms. The market demand is Q_D=602-2p.

What will be the short-run equilibrium market quantity?

Continuing with the previous question:

Suppose the market consists of 20 firms. The market demand is Q_D=602-2p.

In the long run, what do you expect to happen to the number of firms in the industry, the market price, margkey quantity, and output per firm?

Number of firms will             ["", "", ""]                      [ Select ]decreasestay the sameincrease

Market price will             ["", "", ""]                      [ Select ]stay the sameincreasedecrease

Market quantity will             ["", "", ""]                      [ Select ]stay the sameincreasedecrease

Output per firm will             ["", "", ""]                      [ Select ]increasestay the samedecrease

Sandboxes are produced according to the following cost function:

c(q) = q² + 100

where the fixed cost of 100 represents an annual license fee the firms pay. Every firm uses the same technology to produce sanboxes.

In the long run, what will be the equilibrium price?

The market demand for sandboxes is given by Q_D = 1500 – 5p. Find the long-run equilibrium market quantity.

The market demand for sandboxes is given by Q_D = 1500 – 5p. Find the long-run equilibrium number of firms.

Recent trends have increased the demand to Q_D=2250–5p. In the short run, what will be the new equilibrium price? (Note: you will need to use the number of firms you found in the previous question to find this)

Suppose demand remains high at QD=2250–5p in the long run.

What will be the long-run equilibrium price?

Suppose demand remains high at Q_D=2250–5p in the long run.  

What is the number of firms operating in the long run?

Suppose the operating fee is increased from 100 to 225. So now each firm has the cost function

C(q)=q² + 225

In the long run, with the demand Q_D=2250–5p, what will be the equilibrium price?

How did raising the operating fee from $100 to $225 affect the firm's profits in the long run? (compare the profits in the previous question to to the profits in the first question in this story).

Group of answer choices

It decreased from >0 to =0

it stayed the same as is =0

it decreased from 0 to <0

it increased from 0 to >0

it stayed the same and is >0

2018 average figures (i.e.: not job-specific) show women working a full-time job earning 81.1% as much as male counterparts. When controlling for occupational distributions this gap noticeably narrows (although it does not eliminate the disparity).

Part 1.

Although a gender pay gap is unfortunately still present even when controlling for occupational distributions, explain why the gap narrows. In other words, why does an average (woman/men) pay gap figure show a larger degree of disparity? Make sure to use proper terminology from your textbook (chapter 19).

Part 2.

As the country's economic activity shrinks and only certain 'essential' industries continue to work (ex.: healthcare, mass transit, fire and public safety, military, food and agriculture, energy and infrastructure, media, mail and few others), how do you believe gender pay gap statistics will be impacted as a result of COVID-19? Will the pay gap widen or narrow?, why?

Please answer in 75-150 words total

Suppose that the country of VIRUS is currently operating in FREE TRADE arrangement with its closest neighbour, VACCINIA. VIRUS, however, is currently going through a difficult economic period, and its largest domestic producer of goods and services is demanding that VIRUS’S Government implement a TARIFF on all goods being imported from VACCINIA to protect the VIRUS’S domestic economy.

(i)     The Prime Minister of VIRUS has hired you as she is uncertain what to do. She has asked you to (1) Explain Carefully to her exactly what a “Tariff” is and how a “Tariff” will alter the domestic market, AND (2) What will be the eventual impact on each of CONSUMER SURPLUS and PRODUCER SURPLUS compared to the current “Free Trade” position.

When prices rise above equilibrium:

A. producer surplus falls and consumer surplus rises.

B. producer surplus falls and it is uncertain what happens to consumer surplus.

C. consumer surplus falls and it is uncertain what happens to producer surplus.

D. producer surplus falls and consumer surplus falls.

Say which answer choice it is and why.

International Trade & Environment

The environment and economic growth: can we have a sustainable growth and protect the environment in the same time?

U.S. Economy Data

2. Let’s say the Federal Reserve buys $20 Billion in bonds from private banks
   1. What is the total amount (in $) of reserves that banks now have on hand to lend?
   2. Using the simple deposit multiplier, how much additional money (M1) is created by this process?
   3. What will happen to the Federal Funds Rate, the prime rate, and other nominal interest rates in the economy? (Go up, down, stay the same?) Why?
   4. What effect will this policy have on investment? Why?
   5. What effect will this policy have on consumption? Why?
   6. Is this monetary policy or fiscal policy? Contractionary or expansionary? Explain.
   7. Thinking about the relationship between aggregate demand, short-run aggregate supply, and long-run aggregate supply:
      1. When would this policy be appropriate? Explain.
      2. When would this policy be inappropriate? Explain.