1) What is the right to privacy and what is the constitutional basis for it? Discuss three areas of law that directly involve questions about how far the right to privacy extends. In your answer, be sure to mention at least one Supreme Court case for each area of law.

2) Some people contend that while Americans may be divided by ideology or opinion, they are united by fundamental political values. Describe these core values and discuss a specific example of how their practical interpretations might conflict.

3)How do interest groups influence public policy?

Use the concept of risk pooling to discuss the reasoning behind the provision in the Patient Protection and Affordable Care Act (PPACA) to create state-based health insurance exchanges, where anyone (individuals or groups) would be eligible to purchase affordable coverage. Why private insurers, often not willing to sell insurance contracts to small employer groups before the enactment of PPACA, may be more inclined to offer an “essential benefits package” at affordable rates through such exchanges in the near future?

Bill is an aging snowboard instructor at a local ski resort. All winter, he takes over the counter pain medication to deal with his aching joints. Each summer, he moves home with his parents and takes a part time job making minimum wage. This summer, he got qualified for and enrolled into state government subsidized health insurance. Now he plans to undergo arthroscopic surgery by the end of the summer to repair his knee. Use the terms insurance, third party payer, moral hazard, adverse selection and social welfare loss to assess this situation.

1. Suppose that from 2020 to 2025, the price level rises at a rate of 3% per year.
   1. [1] In 2025, real GDP is equal to potential, so there is no output gap. Workers and employers are bargaining the wage for the next year.

If they are backward-looking, are wages likely to increase? If so, by how much?

2. [1] Given your answer in a, will there also be an increase in the price level next year (inflation)? If so, by how much?

3. [1.5] Suppose that in 2026, an inflationary output gap opens. Workers and employers once again bargain the wage increase for the next year.

Compared to the past year (in part b), do you think that inflation will be higher or lower than in 2025?

4. [1.5] In 2027, there is still an output gap. The price of energy—an important input—increases.

Will this affect inflation? If so, will the inflation rate be higher or lower than in 2026?

How is utilitarianism useful and problematic when making decisions that affect others and how should a business determine what actions to take?

Explain the employment and wage rate for a monopsony in an unorganized labor market

graphically. Explain graphically how the wage rate and employment level change when a

union is established in this market.

Business Law 18

1. Provide an example of when it would be best to form a partnership and cite the advantages and disadvantages of doing so.

2. Provide an example of when it would be best to form a corporation and cite the advantages and disadvantages of doing so.

Business Law 19

1. What were some of the key components of early US corporate laws? What was the rationale behind these laws?

2. In your opinion, what are some of the liberal laws that attract corporations to Delaware?

A way that governments can take decisions about the money supply (raising or lowering the interest rate) out of the hands of politicians, so that politicians aren’t tempted to allow high inflation to stimulate temporary economic growth

A. Transparency B. Central Bank Independence C. Reciprocity

11. If a country fears that they are close to defaulting on their debts (they are unable to make the promised payments to foreign lenders), which organization can help them out?

A. World Bank B. International Monetary Fund (IMF) C. United Nations

12 1. If a low income country wants funding for a new highway, which international organization would they appeal to?

A. World Bank B. International Monetary Fund (IMF) C. United Nations

13. What is now the key purpose of the International Monetary Fund (IMF)?

A. To determine countries’ exchange rates B. To reduce poverty in poor countries by financing infrastructure C. To enable global financial stability

In Japan, most hospitals

Group of answer choices

enjoy a high level of profitability

are 100% government owned

are 50% public and 50% private

are barely making money with low profit levels

none of the choices

E231- John Smith wants to buy a house that worth $250,000. He put done $40,000 down payment and borrow the rest from a bank with interest rate 3.5% per year compounded monthly for 15 years. What is the monthly payment to the bank? How much interest John will pay to the bank in 15 years? How much interest John will pay in the FIRST year?

1The demand for a resource is a (constant, derived) ________________ demand that depends on the productivity of the resource and the price of the product made from the resource. 2.If the firm hires the resource in a purely competitive market, the marginal resource (cost, product) ______ will be (greater than, less than, equal to) _______ the price of the resource. 3.The demand for a resource will change if the (demand, supply) ___________ of the product the resource produces changes. 4.The output of the firm being constant, a decrease in the price of resource A will induce the firm to hire (more, less) ____ of resource A and (more, less)____ of other resources; this is called the (substitution, output) _____ effect. 5.A decrease in the price of a complementary resource will cause the demand for labor to (increase, decrease) __________. 6.If the marginal product of labor declines slowly when added to a fixed stock of capital, the demand for labor (MRP) will decline (rapidly, slowly) ___________. 7.The larger the number of good substitutes available for a resource, the (greater, less) ___________ will be the elasticity of demand for a resource. 8.If the marginal revenue product (MRP) of a resource is equal to the price of that resource, the marginal revenue product (MRP) divided by its price is equal to (1, infinity) __________. 9.Give four reasons why it is important to study resource pricing. 10.What are three factors that determine the elasticity of demand for a resource?

Consider an industry with two firms, each having marginal costs and total costs equal to zero.

The industry demand is P = 100 − Q where Q = Q1 + Q2 is total output.

1. Find the cartel output and cartel profits assuming that the firms share the profit equally.

Hint: In cartels, firms behave as if they are a monopoly. Hence, the cartel quantity is at the point where MR = MC. After finding the quantity, use the demand curve to find the cartel price. And then calculate Π = T R − T C. Divide the total profit by 2 to find each firm’s profit.

2. If each firm behaves as a Cournot competitor, what is firm 1’s optimal output given firm 2’s output?

Hint: This part is asking the best response function of firm 1. Solve firm 1’s profit maximizatin problem by setting its MC = MR. Then, express Q1 as a function of Q2.

3. Calculate the Cournot equilibrium output and profit for each firm.

Hint: You have already solved firm 1’s problem above. Now solve firm 2’s problem. Then, solve BR functions simultaneously to get Q1 and Q2. Use the demand function to find the equilibrium price and then calculate Π = T R − T C.

4. If the firms interact only once, is there a profitable deviation (cheating) from cartel for any firm? Find the profit of the firms in case of cheating.

Hint: If a firm deviates from cartel (cheats) it will play its profit maximizing quantity, which is the quantity on its best response function. Now, use the best response function of firm 1 to find firm 1’s cheating quantity, when firm 2 follows the rules of the cartel. Use the demand curve to find the new price level and then calculate profits.

5. Design a 2x2 normal form payoff matrix with strategies cartel and cheat. Complete the payoffs using the profits you calculated in the previous parts.

6. Now, assume that players interact twice. Hence the game is a twice repeated game. Is it possible to have (cartel,cartel) as an outcome? Explain.

7. Now, assume that players interact infinitely. Hence the game is an infinitely repeated game. Is it possible to have cartel as an outcome using tit-for-tat? If yes, give the condition on the discount factor for which cartel is sustainable​​​​​​​.

Hint: Cartel is a sustainable outcome of the repeated game if while firm 2 plays grim-trigger, there exists no profitable one-shot deviation from tit-for-tat for firm 1. Sicne the firms are identical, you don’t need to check the profitable deviations of firm 2. They will be the same. Let’s start with completing the table below. Keep in mind that firm 2 is following tit-for-tat and firm 1 is deviating from tit-for-tat only in period 2. I have already completed the first 2 rows

8. Now, using the discount factor δ calculate the total payoffs from the two cases. You will need to use formulas for infinite series. Now, find δ values which make the total payoff from no deviation bigger than the total payoff from one-shot deviation. For these values of the discount factor, firm 1 will not deviate from tit-for-tat. Since firms are identical, the same condition applies to firm 2 as well.

Consider a small country applying a tariff t as we did in class. Instead of a tariff on all units imported, however, we will suppose that the tariff applies only to imports in excess of some quota amount M’ (which is less than the total imports). This is called a “tariff-rate quota” (TRQ) and is commonly used on agricultural goods.

b. Consider the possibilities of who will receive quota rents that we talked about in class. Based on who receives the rents, how does the use of a TRQ rather than a tariff at the same rate affect Home and Foreign welfare?

c. Based on your answer to (b), why do you think Foreign firms may be more willing to accept a TRQ instead of a tariff?

1. Two firms produce a homogeneous product with an inverse market demand given by P = 100 – 2Q, where Q = q₁+q₂. The first firm has a cost function given by C₁=12q₁and the second firm has a cost function given by C₂=20q₂. The firms make simultaneous output choices to maximize profit. Determine the equilibrium values of firm outputs, market output, price, and firm profits.
2. With reference to question 1, now assume that decision-making is sequential with firm 1 choosing its output first (leader) and firm 2 choosing second (follower). Determine the equilibrium values of firm outputs, market output, price, and firm profit levels.
3. In the above question, there is clearly an advantage to the firm that chooses first. How should we measure the value of the first-mover advantage? Calculate this value for the first firm relative to values in question 1.
4. Return to the situation in question 1. Suppose demand increases by 100 units at each price. Solve for the equilibrium values of firm outputs, market output, price and firm profits.