(American Government)

What do you see as the biggest issue with bureaucracy, in its current form?

What is used as a “means of maintaining dollar values”? Please explain in detail and pls no handwriting.thanks!

Describe what production-related risks are? please explain in detail and please no handwriting. Thanks

The data in columns 1 and 2 in the table below are for a private closed economy.

a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy.

b. Now open up this economy to international trade by including the export and import figures of columns 3 and 4. Fill in columns 5 and 6 and determine the equilibrium GDP for the open economy. What is the change in equilibrium GDP caused by the addition of net exports?

c. What is the multiplier in this example?

The recently passed Coronavirus Relief package increased unemployment benefits by granting $600 a week (up to 4 months) to an unemployed individual, plus the normal unemployment benefit they would be entitled to (max $360 in Michigan); extended the duration of unemployment benefits another 13 weeks; makes former workers eligible (you need not have been laid off due to the pandemic). All of it is federally funded. Was this a good idea? What affects might there be on the labor markets? On the economy?  

France and England both produce wine and cloth with constant opportunity costs. France can produce 150 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine. England can produce 50 barrels of wine if it produces no cloth or 150 bolts of cloth if it produces no wine. When international trade takes place, each country specializes completely in the production of the good in which it has a comparative advantage: 1 barrel of wine exchanges for 1 bolt of cloth and France exports 50 units of wine. We can conclude that France produces _____ units of wine and _____ units of cloth and that France consumes _____ units of wine and _____ units of cloth.

150; 0; 100; 50

150; 0; 50; 50

150; 100; 100; 100

0; 100; 50; 50

1. The following table shows the market shares during the first three months of 2017 for companies in the US personal computer (PC) market:

1. Treating “Others” as a single firm, how would the “Agencies” characterize the concentration level in this market? How does your answer change if “Others” consists of 5 firms each with 5% market share? Explain/Show Work. USE HHI

2. Treating “Others” as a single firm, predict whether the agencies would challenge a merger between Dell and Apple. How does your answer change (if at all) if you treat “Others” as 5 firms each with 5% market share? Explain/Show Work.USE HHI

3. This time, suppose Lenovo and Hewlett-Packard were to merge. Treating “Others” as a single firm, would this merger likely be blocked? If so, is it presumptively illegal? Does your answer change if you treat “Others” as 5 firms each with 5% market share? Explain/Show Work. USE HHI

Imagine that you are the owner of a cookie factory. In your first paragraph, provide examples of four production costs of your cookie factory. Which costs are fixed costs? Which costs are variable costs? In your second paragraph, provide two examples of business decisions that are affected by your costs. Clearly justify your answer.

Keynes and the Neoclassicals

1.  Does it make sense that wages would be sticky downwards but not upwards? Why or why not? (25 points)

2.  Explain why the neoclassical economists believe that the government doesn't need to do much about unemployment. (25 points)

Suppose a public referendum is being held on whether or not to levy a tax on cigarettes. Currently, the supply of cigarettes is given by Qs = -40 + 6P. You estimate the demand for cigarettes to be Qd = 140 - 3P.

You are asked to evaluate the likely effects of a tax on cigarettes equal to $1.50 per pack of cigarettes. Specifically, you are to file a report which predicts by how much this will reduce the amount of cigarettes sold. You are also asked to estimate the proportion of the tax that will be paid by the cigarette companies (sellers), and the proportion of the tax that will be paid by the smokers (consumers) of cigarettes.

To do this, you will first need to calculate the current price and quantity of cigarettes sold.

a) (4 points) What is the equilibrium price and quantity of cigarettes?

P* = __________________________

Q* = __________________________

Next you know from your economics class that you will need to know the price elasticity of demand and the price elasticity of supply of cigarettes

b) (2 points) What is the price elasticity of demand for cigarettes at the equilibrium price?

ε = ________________________

c)  η = ________________________

Using your answers to b) and c), you are now able to determine what proportion of the tax will be paid by buyers, and what proportion of the tax will be paid by sellers.

d) What proportion of the tax will be paid by sellers?

Seller’s Proportion = ___________________________________

e) (3 points) What price will buyers pay after the tax is imposed?

Buyer’s Price = ___________________________________

f) (4 points) What quantity of cigarettes will be sold after the tax?

Q^t = ____________________________________

g) (4 points) What is the deadweight loss from the tax?

DWL = ___________________________________

One former MSU student decided to open a lawn service and landscaping company.            During the first year, she paid rent of $5,000, wages to employees of $50,000, and $10,000            for supplies (gas, oil, and so on). To start this business, she quit her previous job that had paid her $40,000 per year. Her mother invested $10,000 in the business, which was used to           acquire equipment. The company earned $106,000 in revenue in the first year.

3i.        The private explicit cost in the first year is

            ____________________

3ii.       If the average investment in the economy earned a 10% return this year, implicit private cost            for this business is

            ____________________

3iii.      Which is a correct statement about the economic profits of the business in the first year?

            a.         If the average investment in the economy earns a 10% return, economic profits were                                     zero.

            b.         The investor in this business earned a 10% return on investment in the first                                        year.

.           c.         This lawn/landscaping business would have had negative economic profits if the                               average investment in the economy generated a 15% return that year.

            d.         All of the above are correct.

            e.         None of the above is correct.

3iv.      Suppose the state government levied an “environmental tax” on this lawn/landscape business equal to $1,000 per year. The effect of the tax is to

            a.         increase the firm’s average cost, but not the marginal cost.

            b.         increase private implicit cost.

            c.         increase variable cost, but not fixed cost.

            d.         increase social cost, but not private cost.

            e.         have no effect on cost.

Illustrate and explain how the two fundamental theorems of welfare economics describe the relationship between competitive markets and Pareto efficiency

Looking for a proper solution with all relative diagrams included. I know what the theorems are and am looking for an emphasis on the "how" they describe the relationships

Approx 400 words

This problem is about the market for peanut butter. Bad whether and tornadoes in             Georgia greatly affected the peanut crop, and as a result the market price of peanuts increased.

2i.        Suppose the price of peanuts increased from 20 cents per pound to 30 cents per pound,     and the quantity of peanuts purchased fell from 275 million pounds per month to 225        million pounds. The price elasticity of demand for peanuts is

            ___________________

2ii.       What is the effect of the change in the peanut market for the market for peanut butter?

            a.         Demand for peanut butter decreases.

            b.         Supply of peanut butter decreases.

            c.         The price of peanut butter increases.

            d.         Both answers b and c are correct.

            e.         Both answers a and c are correct.

2iii.      Suppose jelly is a complement to peanut butter. What is the effect in the jelly market of the change in the peanut market and the peanut butter market?

            a.         Demand for jelly decreases.

            b.         Demand for jelly increases.

            c.         Supply of jelly decreases.

            d.         Supply of jelly increases.

            e.         Both answers a and c.

2iv.      Suppose the strawberry crop is unusually large resulting in a decrease in the price of         strawberries and a decrease in the price of strawberry jelly. What would happen to the equilibrium price and quantity of peanut butter from the combination of the change in the       peanut market and the change in the strawberry market?

2v.       Suppose the income elasticity of demand for Jiff brand peanut butter is +.5, whereas the       income elasticity of demand for store brand X peanut butter is -.3. If income increases by     10 percent, how much does consumption of Jiff peanut butter change and how much does            consumption of brand X peanut butter change?

            ___________________

What are the four ways that human societies historically have addressed material provisioning? Explain each of them.

Again, on March 27th, 2020, The Bank of Canada decreased its target for the overnight interest rate to 0.25 percent "to provide support to the Canadian financial system and the economy during the COVID-19 pandemic." The decrease in interest rates is an example of an expansionary monetary policy. Assume a closed economy.

In three steps, describe the channels, the monetary transmission mechanism, through which this change in policy leads to a shift of the aggregate demand curve (Hint: AD-AS model)

Explain what happens to aggregate demand, real GDP, and the price level?