1. Assume that GDP is Y = 150. Consumption is C = 50 + .8(Y-T), Investment is I = 100 – 500r, where r is the real interest rate. Taxes are T = 50 and government expenditures are G =20.
   1. Calculate the equilibrium values of C, I, and r.
   2. Calculate the equilibrium values of private saving, government saving, and total saving.
   3. Now suppose due to a war there is an increase in Government expenditures to G=70 without a corresponding increase in taxes (aka it is funded by deficit spending). Calculate C, I, and r.
   4. Calculate the new equilibrium values of private saving, government saving, and total saving.
   5. What happened as a result of the deficit funded ↑ in G? Think of which values have actually changed, was this discussed in class previously?

A) Provide a PESTLE Analysis for the firm

B) Provide a SWOT Analysis for the firm

Freemark Abbey Winery

Earlier in September, William Jaeger, a member of the partnership that owned Freemark Abbey Winery, had to make a decision:  should he harvest the Riesling grapes immediately or leave them on the vines despite an approaching storm?A storm just before harvest is usually detrimental, often ruining the crop.  A warm, light rain, however, will sometimes cause a beneficial mold, botrytis cinerea, to form on the grape skins.  The result is a luscious, complex, sweet wine, highly valued by connoisseurs.

The Winery

Freemark Abbey is located in St. Helena, California, in the northern Napa Valley.  The winery produces only premium wines from the best grape varieties.  Of the 25,000 cases of wine bottled each year (about the same as Chateau Lafite-Rothschild), most were Cabernet Sauvignon and Chardonnay.  About 1,000 cases of Riesling and 500 cases of Petite Syrah were also bottled.  (A case contains twelve 750-ml bottles.)

The Napa Valley extends for 30 miles, from Calistoga in the north to Napa in the south.  The average temperature decreases as one moves south, closer to San Francisco Bay and the cold ocean waters.  Freemark Abbey’s grapes come from an ideal climate in the central and southern parts of the valley.

Winemaking

Wine is produced when the fruit sugar, which is naturally present in the juice of grapes, is converted to yeast, through fermentation, into approximately equal molecular quantities of alcohol and carbon dioxide.  Sparkling wines excepted, the carbon dioxide is allowed to bubble up and dissipate.  The wine then ages in barrels for one or more years, until it is ready for bottling.

By various decisions during wine-making – for example, the type of wooden barrel used for aging – the vintner or winemaker influences the style of wine produced.  The style adopted by a particular winery depends mainly on the owners’ preferences, though it is influenced by marketing considerations.  Usually, as the grapes ripen, the sugar levels increase and the acidity levels decrease.  The winemaker tries to harvest the grapes when they have achieved the proper balance of sugar and acidity for the style of wine sought.  The ripening process is variable, however, and if the weather is not favorable, the proper balance might never occur.

Several different styles of Riesling (more accurately, Johannisberg Riesling) are on the market. If the grapes are harvested at 20% sugar, the wine is fermented “dry” (all the sugar is converted to alcohol and carbon dioxide) or “near dry.”  The resulting wine, at bout 10% alcohol, is light bodied.  If the grapes are harvested at 25% sugar, the winemaker can produce a wine with the same 10% alcohol but with 5% residual sugar; this wine is sweet and relatively full bodied.

A third and rare style results when almost-ripe Riesling grapes are attacked by the botrytismold.  The skins of the grapes become porous, allowing water to evaporate while the sugar remains.  Thus, the sugar concentration increases greatly, sometimes to 35% residual sugar, has extraordinary concentration, and the botrytisitself adds to the wine’s complexity.  Freemark Abbey had already produced a botrytisedRiesling from an earlier vintage.

Jaeger’s Decision Problem

From the weather reports, Jaeger concluded that there was a 50 – 50 chance that the rainstorm would hit the Napa Valley.  Since the storm had originated over the warm waters off Mexico, he thought there was a 40% chance that, if the storm did strike, it would lead to the development of the botrytismold.  If the botrytisdid not form, however, the rainwater, which would be absorbed into the grapes through the roots of the vines, would merely swell the berries by 5 – 10%, decreasing their concentration.  This would yield a thin wine that would sell wholesale for only about $2.00 per bottle, about $0.85 less than Jaeger could obtain by harvesting the not-quite-ripe grapes immediately and eliminating the risk. Freemark Abbey always had the option of not bottling a wine that was not up to standards.  It could sell the wine in bulk, or it could sell the grapes directly. These options would bring only half has much revenue, but would at least avoid damaging the winery’s reputation, which would be risked by bottling an inferior product.

If Jaeger decided not to harvest the grapes immediately in anticipation of the storm, and the storm did not strike, Jaeger would probably leave the grapes to ripen more fully. With luck, the grapes would reach 25% sugar, resulting in a wine selling for around $3.50 wholesale.  Even with less-favorable weather, the sugar levels would probably top 20%, yielding a lighter wine selling at around $3.00. Jaeger thought these possibilities were equally likely.  In the past, sugar levels occasionally failed to rise above 19%.  Moreover, while waiting for sugar levels to rise, the acidity levels must also be monitored.  When the acidity drops below about 0.7%, the grapes must be harvested whatever the sugar level.  If this happened, the wine would be priced at only about $2.50.  Jaeger felt that this even had only about a 0.2 probability.

The wholesale price for a botrytised Riesling would be about $8.00 per bottle.  Unfortunately, the same process that resulted in increased sugar concentration also caused a 30% reduction in the total juice.  The higher price was, therefore, partly offset by a reduction in quantity. Although fewer bottles would be produced, there would be essentially no savings in vinification costs.  The costs to the winery were about the same for each of the possible styles of wine and were small relative to the wholesale price.  

As a leading business economist in the country, you were requested to present a detailed research report during a panel discussion at the textile industry Imbizo suggested in the article on how anti-competitive industry practices presents themselves in the sector. Present your report in assignment format. In your report, apply your knowledge of market structures and trade to discuss some of the industry practices and how they could be restricting growth of the textile sector. [15 marks]

Please answer in detail with every step along with the graph which is required for question bit C.

The table below shows hypothetical values, in billions of dollars, of different forms of money.

a.     Use the table to calculate the M1 and M2 money supplies for each year, as well as the growth rates of the M1 and M2 money supplies from the previous year.

b.     Why are the growth rates of M1 and M2 so different? Explain.

c. Go to the web site of the St. Louis Federal Reserve Bank FRED database and graph the (year-over-year) growth rates of M1 and M2 for the sample period 1998-2018. Show your graph in your submission.

1. How do you feel about reading books compared to watching movies? Is there one experience you enjoy more than the other or do you enjoy them equally? What are some things you like about reading? What are some things you enjoy about movies? You can refer to specific books and movies in your answer.

2. How do you feel about documentary and non-documentary films? Is there one genre you prefer more than the other or do you like them equally? Why? What do you feel are some of the similarities and differences between documentary and non-documentary films?

In your answer you can mention some specific documentary films you have seen or are familiar with

Was inadequate regulation the reason for the demise of Northern Rock? Support your answer

with evidence.

The School District of Philadelphia wants to encourage teachers to fill out an “end-of-year” survey designed to elicit their feedback about various issues affecting schools. The survey is one of the primary channels through which the school district learns about what is happening in schools across the city, and increasing engagement is a key policy priority for the city. The School District has already created the survey and plans to send out the survey in an email to its 8,062 teachers. The District is willing to manipulate the messaging content in the email that will be sent out and/or provide rewards and incentives for survey completion. (They have up to $3,000 to spend.) Using your knowledge of behavioral economics, what would you suggest they do to maximize survey response rates? Be as specific as possible and justify your choices.  

Explain how globalization process can alleviate poverty form the stand point of Aid?

ECO 345 – BOP Assignment Determine how each of the following transactions are entered into the US balance of payments?

1. Boeing Corporation sells five passenger planes to China for $35,000,000 China pays $5,000,000 of this amount in cash out her dollar deposits with Citibank in New York. The remainder of the amount is financed by the Export-Import Bank of the United States.

It is known that the duration of trouble-free operation of a new vacuum cleaner is normally distributed with a standard deviation of 98 days. The research department randomly selects 25 customers who bought these vacuum cleaners and records the duration of trouble-free operation to construct a 95% confidence interval for population mean duration of trouble-free operation. The critical value needed is _________ a. 1.96 b. 1.645 c. 2.064 d. Insufficient information to compute the critical value

Following an unanticipated dollar appreciation, would you recommend that a domestic manufacturing company such as Cummins Engine outsource some of its manufacturing abroad? No or Yes

Purchasing Power Parity

1. (1 Point) Define the Law of One Price (LOOP), the Absolute Pur- chasing Power Parity (Abs. PPP), and the Relative Purchasing Power Parity (Rel. PPP).

2. (4 Points) Prove mathematically that the LOOP implies the Abs. PPP and the Rel. PPP.

3. (5 Points) Discuss how the LOOP, Abs. PPP, and Rel. PPP can fail.

1.

Suppose a firm pays labor (L) a wage rate (w) of $10 and capital (K) a rental rate (r) of $25.

A.

Write an equation for the isocost line and find i

ts slope. Then, draw a graph (with Labor on

the horizontal axis) of the isocost lines for Total Costs of $200 and $300.

B.

Suppose a firm wants to produce 200 units and can do so with the following combinations of

labor and capital

:

(5 L, 10 K); (10 L, 4 K

)

;

or (25 L, 2 K).

Using this information, o

n the same

graph as Part (A), draw

an approximate

isoquant for 200 units, making sure to show the

cost

-

minimizing output choice.

The conditions underlying supply and demand for labor have been different in Europe from that in the USA, in a way that has created a much higher natural rate of unemployment. Discuss various factors which contribute to this