21. Oil shocks, the shift from manufacturing to service jobs, and the use of new technologies are reasons for ___ unemployment.

A permanent B structural C cyclical D frictional

22. In a country where both the labor force participation rate and the unemployment rate are very low, which of the following answers explains why this may be the case?

A a large percentage of the population is employed B a large percentage of the population consist of children

C a large percentage of the population is unemployed D a large percentage of the population is aging and thus has retired

23. A real price is:

A an increase in the average level of the price of a good B the average number of times a dollar is spent on final goods and services in a year

C a price that has been corrected for inflation D a decrease in the average level of the price of a good

24. When the U.S government borrows, it sells:

A treasury bonds B federal paper C federal paper, treasury bonds, and government stocks D government stocks

25. The most basic U.S. employment law stipulates that an employee may quit and employer may fire at any time and for any reason is called:

A the Equal Employment Opportunity Act B the employee privacy law C affirmative action D the employment at will doctrine

26. Which of the following can drive long run economic growth in the Solow model?

A human capital B real capital C technological knowledge D physical capital

27. The consumer price index measures the:

A average price of a basket of goods and services bought by all families in the country B average price of a basket of goods and services bought by a typical consumer

C total price of a basket of goods and services bought by all families in the country D total price of a basket of goods and services bought by a typical consumer

28. The social benefits of research and development are equal to the private benefits.

True or False

29. The quantity theory of money predicts that if the money supply doubles, the price level will also double.

True or False

30. When it occurs at the industry level, Joseph Schumpeter's "creative destruction" results in:

A cyclical unemployment B Structural unemployment C frictional unemployment D underemployment

Over the last few years, investors, especially older investors, have been forced to look for ways to squeeze additional income from their investment portfolios. Investing in bonds is one way to do this.

Do you think investing in corporate bonds is a good way to increase income? Why or why not?

What factors determine bond yields, both corporate and government?

6) Which of the following is INCORRECT?

A) The currency owned by chartered banks is NOT included in the money supply.

B) When chartered banks retire outstanding loans, the supply of money is increased.

C) The net export effect may partially counteract an expansionary fiscal policy.

D) The central bank expands money supply by lowering target for overnight lending rate and/or buying securities

11. Which of the following is correct? When the Bank of Canada buys bonds on the open market, the money supply:

A) contracts and chartered bank reserves increase.

B) expands and chartered bank reserves decrease.

C) contracts and chartered bank reserves decrease.

D) expands and chartered bank reserves increase.

Suppose Market demand is given as Qd = 60 – 2P. Market supply is given as Qs = 2P Also assume ATC = 0.4Q.

a. How many units of the product would the perfectly competitive market supply? What would the equilibrium price be?

b. What are the profit maximizing price and quantity if this market is a monopoly?

c. Calculate the dead-weight loss created if this market started off as perfectly competitive but then became a monopoly.

Compare and contrast perfectly competitive markets with monopolistically competitive markets. Which is more realistic and why?

explain monopolistic competition. It is suggested that one way to get into a monopolistically competitive market is to get a franchise for a nationally advertised product. Provide an example of a franchise and indicate how this is a monopolistically competitive situation based on your definition.

Consider the Keynesian Model for the Open Economy with Government:

Planned Expenditures: AE = C + I + G + X - IM

Consumption: C = 435 + 0.72 (Y- T)

Net Tax Revenue: T = 130 + 0.26 Y

Gross Investment: I = 675

Government Expenditures: G = 540

Exports: X = 545

Imports: IM = 110 + 0.12 Y

Potential Output: Yp = 3,550.742

Section 1: Model Questions

Part 1. What is the slope of the AE curve?  

Part 2. What is the vertical intercept of the AE curve?

Part 3. Calculate the equilibrium ouput (Y^e).

Part 4. Calculate the change in Government Expenditures (ΔG) required to close the output gap (Yf-Ye).   

Part 5. Calculate the change in autonomous Taxes (ΔTo) required to close the output gap (Yf-Ye).

Assume a Ricardian (Comparative Advantage) place. Also assume that Southland requires 8 hours for laptop computers and 2 hours for desktop computers, while the rest of the world (RoW) needs 4 hours for laptops or 2 hours for desktops. Each country has 1000 labor hrs. available. Additionally, assume these countries decide to open for trade and they specialize in products that they have comparative advantage.

What is ToT (terms of trade) for one desktop computer?

A) 0.25 < ToT < 0.5 (< signs are greater than or equal to, not < in A, B and C)

B) 2 < ToT < 4

C) 4 < ToT < 2

D) All of the above

We are in the midst of a global pandemic that has caused a stock market crash and has the potential to cause a massive macroeconomic crisis such as another Depression. What monetary and fiscal policies do you recommend to help this situation caused by COVID-19. Your answer should be 2-3 paragraphs long.

1. (30) True or False (explain your answer briefly. A simple "true" or "false" without
explanation will get zero point)
a) (6 points) An upper stream manufacturing rm merges with another downstream distri-
bution firm so as to engage in price discrimination. Such a vertical merger will decrease all
consumer'swelfare.
b) (6 points) Two firms merge together, only if the transaction cost must be reduced.
c) (6 points) Specic human capital is a barrier of vertical integration.
d) (6 points). The benet of coordination gives rise to vertical integration.
e) (6 points). Social welfare decreases after two firms merge with each other.

1a.

A "political business cycle" suggest that:

Multiple Choice

• cyclical swings in the economy are produced by the inherent instability found in capitalist economies.

• there is a trade-off among goals that tends to make the economic policies of state and local governments procyclical.

• the tools of fiscal policy may be used for political gains and reelection.

• the cyclically adjusted budget is a better indicator of the state of the economy than the actual budget.

1b.

What are the goals of fiscal policy?

Multiple Choice

• Increase deflation and increase nominal GDP.

• Increase profits and reduce expected returns.

• Control inflation and promote full employment.

• Increase nominal wages and reduce real interest rates.

1c.

From the information provided, determine whether you are given an Aggregate Supply or Aggregate Demand Schedule and, if Aggregate Supply, the time frame associated with the price level and output. HINT: You may want to plot out the points on a graph.

Multiple Choice

• Aggregate Demand

• Short Run Aggregate Supply

• Long Run Aggregate Supply

• Immediate Short Run Aggregate Supply

Explain why profits are largest when mc=mr and not when mr>mc ? and is there a difference between sales revenue maximizing and profit maximizing?

marketing essay