How does the Washington Consensus differ from the Santiago Consensus? What economic benefits might a developing country gain by reducing corruption? Discuss only economic benefits and provide examples from specific developing countries.

Given your answers to the empirical section of this problem set (the new policies are Fed cuts rate to zero, launches more bond purchases in historic moves to fight coronavirus), what should we expect to see with aggregate output in the U.S.? With unemployment? Inflation? Illustrate your answers using a graph.

Describe how the U.S. economy would go back to its medium run equilibrium once COVID-19 is controlled. Illustrate your answer using a graph

Explain the factors that affect the firm's total cost, and explain the behaviour of a typical firms costs in the short run and long run. In addition, what determines the behaviour of a typical firm's costs in the short run and long run.

Since both taxes and subsidies create a deadweight loss to society, why are they used to correct negative and positive externalities? Ensure to explain whether society is better off or worse off and why.

How do free competitive markets maximize social welfare? In addition, what are market failures and how do they affect social welfare?

Consider a market for a homogeneous good with a demand curve P = 100 − Q. Initially, there are three firms in the market. All of them have constant marginal costs and incur no fixed costs. The marginal cost for firms 1 and 2 is 20, while the marginal cost for firm 3 is 40. Assume now that firms 2 and 3 merge.

a. Calculate the post-merger Cournot equilibrium quantities.
b. Calculate the post-merger Cournot market quantity and price.
c. Calculate the post-merger firm profits.
d. Calculate the post-merger HHI.
e. Calculate the post-merger market-wide Lerner index.
f. Calculate the post-merger consumer surplus.
g. Calculate the post-merger total surplus (firm profits plus consumer surplus)

Develop a framework to assess/find the probability that COVID-19 pandemic is to be over by the end of May 2020. There is no textbook answer to this question; so, use your creativity and knowledge up to now in ECON 221. Notice that, the expected answer is not a simple “I think...” kind of basic opinion. Notice also that, the expected answer is not a purely verbal one.

Thanks

To reduce reliance on their local water company, the city of St. Augustine has decided to build their own municipal water supply. They must now decide what price to charge consumers. After some careful research, you estimate the following demand curve and marginal revenue curve for water per month:

P = 76 – 3Q

MR = 76 – 6Q

where Q represents the quantity of water used per month in 1,000 gallons. The marginal costs of water purification and delivery are a flat $4 per 1,000 gallons. The fixed costs of running the water treatment plant come to $200 per month.

a) Because the municipal power plant is the only source of water for local residents, the city can act like a monopolist provider of water. Councilman Alexander argues that acting as a monopolist and maximizing profits from the power plant will bring in needed revenue to the city. Find the amount of water purchased per month, along with the price per month, if the city maximizes profits as a monopolist.

b) How much profit does the city make if it acts as a monopoly? (Hint: Profit = TR – TC = TR – TVC – TFC)

c) Draw a graph using the information from part (a) and show the deadweight loss from this pricing strategy. You do not need to calculate the values for these areas, but simply show where they are represented on the graph.

d) Councilwoman Eliza believes that the city is providing a vital public service, and so should provide water without any deadweight loss. To completely eliminate the deadweight loss, what should the price of water be? How much water will citizens purchase at that price? Will the city make money, break even, or lose money at that price? Explain.

Using four basic strategies of international business, use appropriate diagram to discuss in detail the factors would affect choice of strategy? (Maximum words, 3000)

What is Capital and why have economists kept inventing new forms of capital (human capital, social capital, cultural capital, knowledge capital, etc)? (2-3 Pages) (Do Not plagiarize, cite your sources)

Think about the following issues:

1. We have defined capital as costly to acquire, durable (with depreciation), and increasing future productivity.  Does this cover all the theorists in the course?
2. Is there a move from capital as specific tangible productive asset to capital as intangible general aspect of productivity in society?
3. Why do we call acquired skills human capital, network connections social capital, and specific cultural knowledge cultural capital?  What intellectual or political work is this relabeling doing?

How will investment spending be effected when greater level of taxes are placed on business earnings?

How will investment spending be effected when greater level of taxes are placed on business earnings?

Read Jon Gartner - Rise and fall of GDP (2010). There are free pdf online

and answer the questions

Gertner (2010) discussion questions

1. Why was the GDP concept invented?

2. What does it measure? What does it not measure? What would you like it to measure?

3. Is economic growth a necessary condition for economic development? Is it possible to

improve a nation’s well-being/living standards without economic growth? Explain.

4. Is HDI a good measure of national well-being? Explain why yes/no.

5.If you were to improve GDP and HDI as concepts/measures, how would you

modify/revise these indicators?