1. A. The Table 1 below provides data for the Big Cat Rescue Company. The price of entrance is $60 and Q refers to the number of visitors who can visit the Big Cat Reserve. Calculate TR= Total Revenue, π=profit, MC= Marginal Cost and MR=Marginal revenue and fill in the blanks of the table.

B. Also, calculate TR, MR and π=profit when the entrance price falls to $50.

C. As you look over the completed table, what level of Q maximizes profit when price=$60 and when price=$50?

What is the difference between targeting and mass marketing and the pro and cons of each marketing.

Also, you was a marketer, would I focus on mass or target marketing and why.

Answer these questions with good reasoning and use examples to illustrate the topic and use questions to further expand thinking.

Which of the following is an example of an automatic stabilizer?

• A. an increase in government military spending
• B. government stimulus checks due to the Corona virus
• C. an increase in consumption spending
• D. sales taxes
• E. progressive income taxes

QUESTION

a. Explain the importance of data mining tools and the types of information they produce. In what type of circumstance would you advise a company to use data mining?

b. Describe the use of personalization and customization in e-commerce. What business value do these techniques have?

How do you deliver bad news to an employee?

6. Euler’s theorem (one of many): A function ?(?1,?2,…,??) is said to be homogeneous of degree k, if for any ? > 0, ?(??1,??2,…,???) ≡ ?^? ?(?1,?2,…,??)

a. Explain why a demand function ?(??,??,?) is homogeneous of degree 0.

b. Using part a), prove the sum of the income elasticity and the cross-price elasticity equals the price elasticity of demand. Hint: differentiate the demand function identity in part a) with respect to λ.

Suppose it is estimated that for every $1 spent on fatty fast food that government must increase health expenditure by $0.25 to pay for the medical treatment caused by its consumption through the Medicare System. The Medicare System is funded by Australian taxpayers. a. Draw a diagram to illustrate the market for Fatty Fast Food in Tasmania in 2021, showing the: i. Private MB and MC and Market Equilibrium price (PM) and quantity of (QM). ii. Social MB and MC and Socially Efficient price (PE) and quantity of (QE). iii. Dead Weight Loss. b. Explain why there a Dead Weight Loss? c. If a Pigouvian Tax could be applied to fatty fast food at what rate should it be set? How would this achieve the Socially Efficient outcome? d. If there was no Medicare System would there be any externality that needs correcting?

Explain who were the agents pushing this Fiscal policy forward. Who opposed the policy? What was the incentive

framework of the main agents involved before the fiscal policy was implemented? And what was the incentive

framework implied by the fiscal policy?

Identify groups of people with similar backgrounds or interests and compare the fiscal

policy from the viewpoint of these groups.

1. Explain how and why each of the following factors would influence current aggregate demand in the United States:

(a) an increased fear of recession

(b) an increased fear of inflation

(c) the rapid growth of real income in Canada and Western Europe

(d) a reduction in the real interest rate

(e) a decline in housing prices

(f) a higher price level (be careful)

2. Which of the following would be most likely to shift the
long-run aggregate supply curve (LRAS) to the left?

a. unfavorable weather conditions that reduced the size of this year’s grain harvest

b. an increase in labor productivity as the result of improved computer technology and expansion in the Internet

c. an increase in the cost of security as the result of terrorist activities

3. How would an increase in the economy’s production possibilities influence the LRAS?

4. Suppose consumers and investors suddenly become more pessimistic about the future and therefore decide to reduce their consumption and investment spending. How will a market economy adjust to this increase in pessimism?

5. “If the general level of prices is higher than business
decision makers anticipated when they entered into
long-term contracts for raw materials and other
resources, profit margins will be abnormally low and
the economy will fall into a recession.”
– Is this statement true?

6. Which of the following would be most likely to throw the
U.S. economy into a recession?

(a) a reduction in transaction costs as the result of the growth and development of the Internet

(b) an unanticipated reduction in the world price of oil (will the impact of this factor differ between oil producing and oil consuming states?)

(c) an unanticipated reduction in AD as the result of a sharp decline in consumer confidence

7. During the first half of 2008, the world price of oil soared while stock and housing prices plunged. Within the framework of the AD-AS model, how would these two changes influence the U.S. economy? Explain the expected impact on output & price level.

8. When actual output is less than the economy’s full employment level of output, how will real resource prices and real interest rates adjust?

9. Construct the AD, SRAS, & LRAS curves for an economy experiencing:

(a) full employment equilibrium

(b) an economic boom

(c) a recession

Why is fiscal policy more effective in the Keynesian model when interest rates are at 0? Show this graphically with the money market graph.

Show what happens to output, consumption and investment, wages and unemployment if the Federal Reserve contracts the money supply in the RBC model with nominal rigidities.

Provide a brief explanation of the general ineffectiveness of policy in counteracting business cycles in the RBC model.