Suppose that in a year, an American worker can produce 100 shirts or 20 computers, while a Chinese worker can produce 100 shirts or 10 computers. we can describe the production possibilities of the Americans and the Chinese in a table:

1.Now allow American and China to trade with each other. Find a mutually agreeable trade that makes each country better off than it was before it specialized. What is the range of TOT at which trade can occur?

2. List the determinants of the terms of trade. What do factors affect the level of the terms of trade?

What is the argument conservative “supply siders” use to justify tax cuts that increase income inequality in the United States?

What does the evidence suggest about the validity of supply side theory. Connect your answer to the concept of growth in Potential RGDP.

In the competitive market for soy beans, there are 520 identical farms, each farm having the cost function. c(q) = .5q2 + 3q + 32 where q is the quantity of output in tons produced by each farm. mc(q) = q + 3. The market demand equation is Qd(p) = 4640 – 100p. • Find a firm’s individual supply equation. • What is the equation for the market supply? What is the equilibrium price and quantity in this market? • What is the q for each firm? • What are profits/losses for each firm? • Should each farm in the short-run stay in business? Explain your answer.

Imperfect competition is the norm, so healthcare markets cannot work. Analyze this comment and explain your answer.

10-12 please answered with work please? The multivariate demand function (below) is needed for questions 6 – 12. Setting: U.S. Auto manufacturers are trying to develop a multivariate function with which to estimate the demand for their gas-electric hybrid compact cars. Here is one that Motors General developed for its Jolt: Qj = 65000 – 20Pj + 20Pf + 35Pt – 5Pb + 0.2Tc + 0.05Y + 10Mg + 0.04A Where Qj = the number of Jolts demanded per week. Pj = the price of each new Jolt (in $). Pf = the price of each new Ford gas-electric hybrid (in $). Pt = the price of each new Toyota gas-electric hybrid (in $). Pb = the price of replacement batteries for the Jolt (in $). Tc = the amount of tax credit incentive offered with the purchase of a new hybrid (in $). Y = average weekly disposable income of a typical Jolt purchaser (in $). Mg = the miles per gallon of gas rating of the Jolt (in miles per gallon). A = average weekly Jolt advertising expenditure (in $).

10. Enter the following values into your Jolt demand function (be very careful with the calculation because the resulting quantity of Jolts demanded will be used in several questions to follow). Circle your answer on the answer sheet. Pj = $45000 Pf = $40000 Pt = $45000 Pb = $7000 Tc = $8000 Y = $1000 Mg = 55 A =$20000

11. What is the point cross-price elasticity of Jolt demand with respect to the Toyota price (Pt) of $45000? Work out completely and show the sign (+ or -); carry out to 3 decimal places.

12. What is the point elasticity of Jolt demand with respect to the advertising expenditure (A) of $20000. Work out completely and show the sign (+ or -); carry out to four decimal places.

Sam can produce 6 donuts per hour or 18 cupcakes per hour. Milly can produce 3 donuts per day or 15 cupcakes per hour. Who has an absolute advantage in which product(s)? Find Sam’s opportunity costs for one donut and for one cupcake. Find Milly’s opportunity costs for one donut and for one cupcake. Sam has a comparative in which product(s)? Milly has a comparative advantage in which product(s)? Who should specialize in what product? What would be a mutually beneficial exchange rate?

The lamp industry is perfectly competitive. The price of a lamp is $50. A representative firm’s cost function is TC=1000+20Q+5Q².

a. What is MR for firms in this industry?
b. What is η of demand for firms in this industry?
c. What output Q will maximize profit for a representative firm?
d. What is the representative firms profit at this output?
e. What is the representative firms ATC at this output?
f. What is the representative firms AVC at this output?
g. Should the representative firm shut down in the short run? Why or why not?
h. What output for the representative firm will minimize ATC? (hint: use solver or find by solving MC=ATC, or if you are calculus whiz find ATC’=0)
i. Is the lamp industry in equilibrium? Why or why not?
j. Suppose total industry demand at P=$50 is 3000. How many firms are operating in the industry?
k. What would you expect to happen to future firm population in the lamp industry?
l. What would you expect to happen to future price in the lamp industry?
m. What industry price will result in LR industry equilibrium?

Consider the data presented in the table:

a. What is the marginal propensity to consume for households in this economy?

Instructions: Enter a numerical value rounded to two decimal places as necessary

b. Based on the assumptions of our aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports.

Instructions: Enter numerical values into the table. Enter whole numbers only.

What is this type of expenditure called?

• Autonomous expenditure

• Equilibrium expenditure

• Income-dependent expenditure

• Dependent expenditure

c. For each level of actual aggregate expenditure, calculate unplanned inventory investment.

Instructions: Enter numerical values into the table. Enter whole numbers only. If the value is negative, you must enter a minus sign.

d. What is the equilibrium level of aggregate expenditure in this economy?

Instructions: Enter a numerical value rounded to two decimal places as necessary.

e. For each level of actual aggregate expenditure, label the future output tendency as “increase,” “decrease,” or “same” based on what you expect to happen to future output.

Instructions: Fill in the last column of the table.

f. At the equilibrium level of aggregate expenditure, which of the following are true?

Instructions: Click each box to empty the box and then click each box to select the correct answers. There may be more than one correct answer.

• Firms have no incentive to change the level of their output.unanswered
• Unplanned investment is positive.unanswered
• Unplanned investment is zero.unanswered
• Consumption is maximized.unanswered

This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Ne

How does L'oreal approach social responsibility.

Which of the following two episodes in U.S. economic history were associated with a financial panic (choose two of the answers below)

Which of the following recessions was created by a supply shock that caused BOTH inflation and unemployment to increase

When a recession is caused by a negative aggregate demand shock, we would expect inflation to __________ and unemployment to ______________.

During the Great Recession, which of the following was the term used for the unconventional action by the Federal Reserve to lower long-term interest rates directly

What are the roles of business groups in emerging markets as a response to the presence of institutional voids and market failure?

Cost is a big issue with every company, and changing the technology is the biggest cost for most companies, how companies were able to cope with this problem and maintain the level of profit in a very competitive market?

Assume Purchasing Power Parity (PPP) holds in the long run between the U.S. and Europe. What does this already imply for the exchange rate E_($/€)? Write down your answer in the form of an equation and a brief explanation. (2 pts)

Now assume we have PPP and also that the quantity theory of money holds, with the velocity of money V constant and real output Y fixed and constant in both countries. Suppose that the Federal Reserve is expanding the supply of dollars by 5% per year, while the European Central Bank is expanding the supply of euros at 2% a year. What will happen to E_($/€) over time? Give a quantitative answer and a brief explanation. (2 pts)

To celebrate their Queen’s 90^th birthday, the country of Wonderland has decided to bake the world’s largest cake. The main ingredient of the cake will be flour. It has been estimated that the cake will use 50,000 tons of flour, which represents 20% of the current supply of flour. The current price of flour is $4000 per ton. Previous study has shown the elasticity of supply, ε_s, for flour to be 0.3 and the elasticity of demand, ε_d to be -1.2.

a. Assuming linear demand curves, what is the percentage change in the price of flour you would anticipate as a result of this project? What do you expect to be the change in quantity supplied as well as the change in quantity demanded by private consumers? What is the opportunity cost of flour that you would use in a cost-benefit analysis of this project?

[Hint: Es = (ΔQs/ΔP)(P/Qs) and Ed =(ΔQd/ΔP)(P/Qd) where Qs is current supply and P is current price.

Note that the amount of flour demanded by the project Qp = ΔQs – ΔQd]

b. Sketch the supply and demand for flour and show the opportunity cost on your sketch.