How will oil production in Saudi Arabia, affect competition for the Stanley Cup in 2015-2016?

Please use the economics knowledge you have learned so far to analyze the case below. You can propose your own questions and then answer them. Remember, there is no absolutely correct answer to this exercise. Its purpose is to provide you an opportunity to demonstrate your ability to think like an economist by applying economic principles to interpret the logic of a real-world phenomenon.

Economic Growth and the Business Cycle at Corning, Inc.

In 1851, Amory Houghton founded the company that became Corning, Inc. By 2015, Corning had more than 34,000 employees and sales of nearly $10 billion. Corning’s experience has mirrored two key macroeconomic facts: In the long run, the U.S. economy has experienced economic growth, and in

the short run, the economy has experienced a series of business cycles. During the 2001 recession, Corning suffered a $5 billion loss as the market for fiber-optic cable collapsed. Similarly, the recession of 2007–2009 caused a sharp decline in durable goods, which caused Corning’s sales of ceramics for automobile emissions systems and display panels for computers and televisions to decline. Despite these setbacks, Corning continued to make a profit during the recession due to sales of new products, such as Gorilla glass. A similar product, Willow glass, can be wound and shipped in rolls, which might make it possible for Apple and other firms to produce foldable electronic devices.

A machine costs $17,026 and is expected to have a scrap value of $2,432 whenever it is retired. Operating and Maintenance costs are $1,268 for the first year and expected to increase by $1,784 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years.

One of Matt's favourite brands is offering a deal on its’ hooded jackets, which is sold at $100 a piece. The promotion claims that you can “get the second piece 50% off.” It means, if Matt buys a jacket for $100, he can buy the second jacket (of different colour) for 50% of the original tag price, $50. In addition, if Matt wants a third jacket, he has to pay $100 again, but now he has the privilege to purchase the fourth jacket for $50, etc. Assume the price for Other goods is $50 and Matt has an income of $1,000 to spend on both the jackets and Other goods.”

Draw Matt's budget constraint with jackets on the horizontal axis.

An industrial sewing machine costs $5,641 and is expected to have a scrap value of $3,792 whenever it is retired. Operating and Maintenance costs are $1,038 for the first year and expected to increase by $2,612 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years.

What are the factors that affect the effectiveness of monetary and fiscal policy?

1. Suppose the Bank of Canada made an announcement that it would purchase up to $500 billion of long term Canada bonds over the following six month. What effect might this policy has on the yield curve? Explain in detail.

2. During the current economic crisis caused by the Coronavirus, what would you expect the yiedd curve to look like? Upward sloping, flat, or inverted.Explain in detail.

There are 750,000 residents in a city. Based on a government poll, they fall within three groups regarding their willingness to pay for the construction of a park.

- 200,000 of the residents are not willing to pay for the park at all,

- 250,000 residents are willing to pay $12,

- 300,000 are willing to pay $100.

The cost of the park will be $15 million. Should it be built? Why or why not?

Would this answer change if the only way to pay for it is to divide the cost equally across each of the 750,000 residents? Why or why not?

You are asked to plan a budget of University of Connecticut for the next year. The two major expenses involve computers, x1 and classroom furniture, x2. The university utility function is given byU(x1, x2)=ln x1 + 2ln x2

a) Find optimal "consumption" of computers and furniture if P1=2 and P2=4 and the available funds are m= 60.

b) Is computer an ordinary or a Giffen good ? Determin whether computer is a gross complement,gross substitute or neither, for classroom furniture. (Explain these questions using partial derivatives)

c) Please draw the price offer curve for x2 given p1=4 and m = 60.

Acemoglu and Robinson, in their book entitled, “Why Nations Fail,” categorize institutions into two types: those that are ‘inclusive’ and those that are ‘extractive’

1. What are the major characteristics of these two types of institutions?
2. Why are institutions important for long run economic development?
3. Why are institutions ‘persistent’?
4. Is economic growth possible under extractive institutions?

Question 11 pts

In a Pareto efficient allocation,

Group of answer choices

there are gains from trade still not captured in the economy.

there is no way to make any person better off without making someone else worse off

Some people can be made better off without making others worse off, but there is no way to make most people better off without making some others worse off.

Total utility in society is maximized.

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Question 21 pts

The result that a perfectly competitive price system brings about an efficient allocation of resources is known as:

Group of answer choices

The First Theorem of Welfare Economics.

The Second Theorem of Welfare Economics

Gresham's Law.

The Principle of Market Failure.

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Question 31 pts

All of the following are considered to produce inefficiency in markets EXCEPT:

Group of answer choices

Public Goods

Externalities

Imperfect Competition

All of the above result in market failure.

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Question 41 pts

A model in which all markets in the economy clear simultaneously is a ___________ equilibrium model.

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Question 51 pts

A model which examines how one market in the economy clears is a _____________ equilibrium model.