What is the difference between economic growth and economic development? Please explain with detail and examples

6.

a. The market for coats is perfectly competitive with market supply given by QS= 2500 + 40P and market demand given by QD given by QD= 7500 – 10P. Solve for the equilibrium values of price and quantity. Calculate the values of elasticity of demand and elasticity of supply at the equilibrium.

b. With reference to question 6a, the government imposes a tax of 20% on coats. Calculate the new equilibrium prices and quantity and explain how the burden of the tax is shared between consumers and producers. How much tax revenue is collected?

c. With reference to your answer for part b, suppose that the government had imposed on the producers a license fee (a one time fixed payment) that generated the same revenue for the government as did the tax. What is the new equilibrium value of price and quantity. Explain the difference between the two answers.

ECO 202 Microeconomics

Question 1. Provide solutions for the following:

a) Discuss the differences between a policy protecting competition and policy protecting competitors.

b) Explain the concept of optimal pollution. Why might an ardent environmentalist and an economist have different views as to where "optimal" was?

c) Wind power is subsidized by the government with tax subsidies and purchase mandates. Explain how externalities theory might justify such subsidies. Is the wind subsidy an example of crony capitalism? Why or why not?

d) In what ways are unions similar and/or different from monopolists?

Consider an industry comprised of a dominant firm with a competitive fringe. Each firm produces a homogenous good. Market demand is given by Q=a-bp. The dominant firm has a constant marginal cost c. There are three competitive fringe firms; each competitive fringe firm i faces a marginal cost of c+qi, where is qi is the output of firm i.

a.) What is the dominant firm’s residual demand curve?

b.) What is the output and profit level of each firm?

c.) Suppose the dominant firm merges with one of the competitive fringe firms. What is the output and profit level of the dominant firm after the merger? Do two firms have an incentive to merge?

Suppose that the market for DVD rentals is perfectly competitive and operates at the industry's long-run equilibrium. At this point, Amazon and Hulu expand their online streaming services. Describe the long-run adjustment observed in the DVD rental industry, step by step. Explain the economic intuition for each change you describe and illustrate it with a graph.

Based on the film "Inequality For All---How has rising inequality in the U.S. been detrimental to the economy? What are the social consequences of inequality? In what ways is inequality linked to democracy in our country? What, if anything, can be done to mitigate the negative impacts of inequality?

The power of the U.S. president has evolved since the great depression. Develop an argument to explain whether this evolving power has made the presidency a dangerous office.

Defensible thesis statement.

Suppose that a firm has the p production function f(x1; x2) = sqrt(x1) + x2^2.

(a) The marginal product of factor 1 (increases, decreases, stays constant) ------------ as the amount of factor 1 increases. The marginal product of factor 2 (increases, decreases, stays constant) ----------- as the amount of factor 2 increases.

(b) This production function does not satisfy the definition of increasing returns to scale, constant returns to scale, or decreasing returns to scale. How can this be?

(c)Find a combination of inputs such that doubling the amount of both inputs will more than double the amount of output.
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The demand function for football tickets for a typical game at a large midwestern university is D(p) = 200, 000 -10, 000p. The university's football stadium holds a maximum of 100,000 spectators. On a clearly labelled graph, draw the inverse demand function and the marginal revenue function.

3. The UCC governs sales contracts, or contracts for the sale of goods. How does the UCC define a sale? Describe what goods are, who is a merchant, and how these fall into the context of a legal sale of product.

Develop an argument that explains whether the federal bureaucracy operates with sufficient checks and balances or whether it has too much discretionary authority to be a fully democratic element of government.

Defensible thesis statement/

Once consequence of income inequality is that high income individuals might engage in rent-seeking behavior. What is rent-seeking behavior and why is it bad for an economy?

One of the principle criticisms of the Malthusian model is that it fails to include a role for prices.   Provide a complete explanation as to why flexible prices serve to negate the predictions of the Malthusian model.

Assume that the following conditions​ exist:

a. All banks are fully loaned​ up- there are no excess​ reserves, and desired excess reserves are always zero.

b.

The money multiplier is

77.

c. The planned investment schedule is such that at a 4 percent rate of​ interest, Investment

​=$14501450

billion. At 5​ percent, investment is

​$14201420

billion.

d. The investment multiplier is

44.

e..

The initial equilibrium level of real GDP is

​$1313

trillion.

f. The equilibrium rate of interest is 4 percent

Now the Fed engages in contractionary monetary policy. It sells

​$22

billion worth of​ bonds, which reduces the money​ supply, which in turn raises the market rate of interest by 1 percentage point.

Calculate the decrease in money supply after​ FED's sale of​ bonds: ____billion

Equilibrium GPC decreases by: _____ billion

Calculate the new equilibrium level of real GPC ___ trillion

Explain the impacts of Canadian firms learning positive economic news about the future in the context of the market for loanable funds. For example, when the price of oil increases following the unexpected news that Saudi Arabia and Russia have made up and agreed to lower production to support the price of oil. Contrast the impacts if Canada is better approximated by a closed economy versus if Canada is better approximated by an open economy. Your answers do not need to go outside the impacts in the market for loanable funds.