1) What is the marginal propensity to consume? If MPC = 0.6, explain what happens in terms of consumption & savings if your income increases by $100.

2) What is the marginal propensity to save? How is this related to consumption and disposable income? Write the relationship among the three variables with an equation.

3) If the MPC = 0.6 and government spending decreases by $100 billion, what is the total decrease in rGDP in the short run? (how much does AD shift?)

Might a policymaker choose a steady state with more capital than in the Golden Rule steady state? With less capital than in the Golden Rule steady state? Explain your answers.

Policy Implementation Steps

Learning Objectives and Outcomes



Explain proper policy implementation steps and describe factors relating to its success.

Scenario

Two health care organizations have recently merged. The parent organization is a large medical clinic

that is HIPAA compliant. The clinic recently acquired a remote medical clinic that provides a specialty

service. The remote clinic is organized in a flat structure, but the parent organization is organized in a

hierarchical structure with many departments and medical clinics. These organizations are in the process

of aligning their operations. You are asked to make major refinements to the organization’s cell phone use

policy immediately.

Assignment Requirements

Read the scenario carefully and then research examples of cell phone policies and implementation. Write

a report citing examples of at least three successful cell phone policy implementations found in your

research. Indicate how you would analyze your organization, and then how you would identify and finalize

a cell phone use policy for the organization. In addition, provide a rationale as to what types of business

challenges would be overcome or enhanced.

1. For any economy, the "scarcity" problem simply means that the available free resources are " not enough" to produce all goods and services required to satisfy the unlimited humans wants.

True or False

2. Division of labor in some cases is used to explain why countries gain when specializing in producing fewer goods and services.

True or False

Why economies may gain when specializing in producing fewer goods and services?

Question 3 options:

4.Because the number of available goods and services is uncountable , countries may never gain less if they specialize endlessly in producing fewer goods and services .

True or False

What can be used to explain why countries may not always benefit from the specialization in producing fewer goods and services?

Question 5 options:

Question 6

For a country X producing only two products, A and B, the production possibilities curve (PPC) can be used to show that the implicit opportunity cost of producing A should always be declining.

Question 6 options:

Question 7

For a country X producing only two products, A and B, when other things remain equal, points along the country's production possibilities curve (PPC) can be used to show which of the following?

Question 7 options:

Question 8

If the US government believes that the minimum wage is too low in almost all states, what should the government consider before going forward to raise the current federal minimum wage?

Question 8 options:

ErdemS (ES) is a monopoly selling tickets for the football match of SileSpor. The demand for each ticket is P = 350 - Q. ES’s cost is $10,000 plus $50 per ticket. (i.e., C(Q)=10.000+50Q ).

a) What is the profit-maximizing price that ES will charge? How many tickets will be sold? What is ES’s profit for this match?

b) Next ES finds out that non-students (Type A) and students (Type B) have different demands:   Let P_A = 650 - 5Q_A stand for the demand function of Type A; and let P_B =350-3Q_B stand for the demand function of Type B. Suppose that ES utilizes price discrimination and asks different prices to each type.

What is the price charged to a non-student (Type A)? What is the price charged to a student (Type B)? How many of each type are on this match? What would ES’s profit be for this match?

Can you please check my answers and if I am wrong correct me.

Thank you!

A. In today's interconnected world, many central banks communicate regularly and frequently with the public about the state of the economy, the economic outlook, and the likely future course of monetary policy. Communication about the likely future course of monetary policy is known as "forward guidance.". If the central bank increases the reserve ratio, as the market has perfectly expected, which of the following will surely happen?

1. The short run economic output will be deviating from its potential output

2. The prevailing price level of goods and services in that country will fall

3. The level of potential output will be shifting to the left

4. None of the following will happen for sure

B. What actually helps to determine the slope of short-term aggregate supply curve?

1. The rate at which the level of technology increases

2. The rate at which the country’s capital stock is depreciating

3. How responsive is the actual short run level of output to the deviation of actual price level of the economy from its expected price level

4. How sensitive is the economy towards changes of nominal interest rate

C.  During a recession the economy experiences:

1. rising employment and income.

2. rising employment and falling income.

3. rising income and falling employment.

4. falling employment and income.

D. Most economists believe that in the short run

1. real and nominal variables are determined independently and that money cannot move real GDP away from its long-run trend.

2. real and nominal variables are determined independently but that money can temporarily move real GDP away from its long-run trend.

3. real and nominal variables are highly intertwined but that money cannot move real GDP away from its long- run trend.

4. real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its long-run trend.

E. The Central Bank of Wiknam increases the money supply at the same time the Parliament of Wiknam passes a new investment tax credit. Which of these policies shift aggregate demand to the right?

1. both the money supply increase and the investment tax credit

2. the money supply increase but not the investment tax credit

3. the investment tax credit but not the money supply increase

4. neither the investment tax credit nor the money supply increase

F. The long-run aggregate supply curve would shift right if the government were to

1. reduce the minimum-wage.

2. make unemployment benefits more generous.

3. raise taxes on investment spending.

4. All of the above are correct.

G. Sticky nominal wages can result in

1. lower profits for firms when the price level is lower than expected.

2. a decrease in real wages when the price level is lower than expected.

3. a short-run aggregate-supply curve that is vertical.

4. a long-run aggregate-supply curve that is upward-sloping.

H. In which case can we be sure aggregate demand shifts left overall?

1. people want to save more for retirement and the Fed increases the money supply.

2. people want to save more for retirement and the Fed decreases the money supply.

3. people want to save less for retirement and the Fed increases the money supply.

4. people want to save less for retirement and the Fed decreases the money supply.

I. In the context of the aggregate-demand curve, the interest-rate effect refers to the idea that, when the price level increases,

1. the real value of money decreases; in turn, the real value of the dollar increases in foreign exchange markets, which decreases net exports.

2. the real value of money decreases; in turn, interest rates increase, which decreases net exports.

3. households increase their holdings of money; in turn, interest rates decrease, which reduces spending on investment goods.

4. households increase their holdings of money; in turn, interest rates increase, which reduces spending on investment goods.

J. Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this

1. it is only necessary that long-run aggregate supply shifts right over time.

2. it is only necessary that aggregate demand shifts right over time.

3. both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must be shifting farther.

4. None of the above cases would produce rising prices and growing real GDP over time.

How do stock market crashes relate to market failure in the financial industry?

What did the Crusaders hope to achieve outside Europe? Within Europe? How successful were they in achieving these goals?

Compare and contrast monopolistically competitive firms with competitive firms. Be sure to explain what is similar in each industry and what is different. Make sure to address how many firms are in the industry, whether the product is homogenous or differentiated, conditions of entry and exit, and both short-run and long-run economic profit. (pls explain more as I'm only in intro to Micro, thx)

What are the key criticisms of the Gini coefficient?

In your opinion, what are the three most important macroeconomic issues of our society today?

Watch the TED Talk below and think about how the marriage practices in this film illustrate the various attributes of culture discussed last week. Specifically, write a brief 100-200 word reflection addressing the following: Are five husbands better than one? Kimber McKay at TEDxUMontana

• How is fraternal polyandry interconnected with other aspects of life, such as property and economics?

• How do the marriage practices in this region of Nepal illustrate that culture is dynamic?

1. Trace through the short-run, intermediate, and long-run effects of an increase in consumer wealth.  (Remember there are several AD determinants.  Be able to do this question for any of them—things like consumer optimism, consumer pessimism, decreases in wealth, decrease in household indebtedness, increase in household taxes, decreases in household taxes, increased excess capacity of capital, decreased excess capacity of capital, increases in the cost of maintaining capital, decreases in the cost of maintaining capital, increases in gov’t spending, decreases in gov’t spending, increases in income abroad, decreased value of currency, ETC).  No not use policy to offset the resulting business cycle. Include a graph and extended 4-step analysis.

1)start:

2)Shock:

3)Shift:

4)Result: Short Run

Intermediate

Long Run