Suppose that the country of VIRUS is currently operating in FREE TRADE arrangement with its closest neighbour, VACCINIA. VIRUS, however, is currently going through a difficult economic period, and its largest domestic producer of goods and services is demanding that VIRUS’S Government implement a TARIFF on all goods being imported from VACCINIA to protect the VIRUS’S domestic economy.

(i)     The Prime Minister of VIRUS has hired you as she is uncertain what to do. She has asked you to (1) Explain Carefully to her exactly what a “Tariff” is and how a “Tariff” will alter the domestic market, AND (2) What will be the eventual impact on each of CONSUMER SURPLUS and PRODUCER SURPLUS compared to the current “Free Trade” position.

When prices rise above equilibrium:

A. producer surplus falls and consumer surplus rises.

B. producer surplus falls and it is uncertain what happens to consumer surplus.

C. consumer surplus falls and it is uncertain what happens to producer surplus.

D. producer surplus falls and consumer surplus falls.

Say which answer choice it is and why.

International Trade & Environment

The environment and economic growth: can we have a sustainable growth and protect the environment in the same time?

U.S. Economy Data

2. Let’s say the Federal Reserve buys $20 Billion in bonds from private banks
   1. What is the total amount (in $) of reserves that banks now have on hand to lend?
   2. Using the simple deposit multiplier, how much additional money (M1) is created by this process?
   3. What will happen to the Federal Funds Rate, the prime rate, and other nominal interest rates in the economy? (Go up, down, stay the same?) Why?
   4. What effect will this policy have on investment? Why?
   5. What effect will this policy have on consumption? Why?
   6. Is this monetary policy or fiscal policy? Contractionary or expansionary? Explain.
   7. Thinking about the relationship between aggregate demand, short-run aggregate supply, and long-run aggregate supply:
      1. When would this policy be appropriate? Explain.
      2. When would this policy be inappropriate? Explain.

Suppose that in a year, an American worker can produce 100 shirts or 20 computers, while a Chinese worker can produce 100 shirts or 10 computers. we can describe the production possibilities of the Americans and the Chinese in a table:

1.Now allow American and China to trade with each other. Find a mutually agreeable trade that makes each country better off than it was before it specialized. What is the range of TOT at which trade can occur?

2. List the determinants of the terms of trade. What do factors affect the level of the terms of trade?

What is the argument conservative “supply siders” use to justify tax cuts that increase income inequality in the United States?

What does the evidence suggest about the validity of supply side theory. Connect your answer to the concept of growth in Potential RGDP.

In the competitive market for soy beans, there are 520 identical farms, each farm having the cost function. c(q) = .5q2 + 3q + 32 where q is the quantity of output in tons produced by each farm. mc(q) = q + 3. The market demand equation is Qd(p) = 4640 – 100p. • Find a firm’s individual supply equation. • What is the equation for the market supply? What is the equilibrium price and quantity in this market? • What is the q for each firm? • What are profits/losses for each firm? • Should each farm in the short-run stay in business? Explain your answer.

Imperfect competition is the norm, so healthcare markets cannot work. Analyze this comment and explain your answer.

10-12 please answered with work please? The multivariate demand function (below) is needed for questions 6 – 12. Setting: U.S. Auto manufacturers are trying to develop a multivariate function with which to estimate the demand for their gas-electric hybrid compact cars. Here is one that Motors General developed for its Jolt: Qj = 65000 – 20Pj + 20Pf + 35Pt – 5Pb + 0.2Tc + 0.05Y + 10Mg + 0.04A Where Qj = the number of Jolts demanded per week. Pj = the price of each new Jolt (in $). Pf = the price of each new Ford gas-electric hybrid (in $). Pt = the price of each new Toyota gas-electric hybrid (in $). Pb = the price of replacement batteries for the Jolt (in $). Tc = the amount of tax credit incentive offered with the purchase of a new hybrid (in $). Y = average weekly disposable income of a typical Jolt purchaser (in $). Mg = the miles per gallon of gas rating of the Jolt (in miles per gallon). A = average weekly Jolt advertising expenditure (in $).

10. Enter the following values into your Jolt demand function (be very careful with the calculation because the resulting quantity of Jolts demanded will be used in several questions to follow). Circle your answer on the answer sheet. Pj = $45000 Pf = $40000 Pt = $45000 Pb = $7000 Tc = $8000 Y = $1000 Mg = 55 A =$20000

11. What is the point cross-price elasticity of Jolt demand with respect to the Toyota price (Pt) of $45000? Work out completely and show the sign (+ or -); carry out to 3 decimal places.

12. What is the point elasticity of Jolt demand with respect to the advertising expenditure (A) of $20000. Work out completely and show the sign (+ or -); carry out to four decimal places.

Sam can produce 6 donuts per hour or 18 cupcakes per hour. Milly can produce 3 donuts per day or 15 cupcakes per hour. Who has an absolute advantage in which product(s)? Find Sam’s opportunity costs for one donut and for one cupcake. Find Milly’s opportunity costs for one donut and for one cupcake. Sam has a comparative in which product(s)? Milly has a comparative advantage in which product(s)? Who should specialize in what product? What would be a mutually beneficial exchange rate?

The lamp industry is perfectly competitive. The price of a lamp is $50. A representative firm’s cost function is TC=1000+20Q+5Q².

a. What is MR for firms in this industry?
b. What is η of demand for firms in this industry?
c. What output Q will maximize profit for a representative firm?
d. What is the representative firms profit at this output?
e. What is the representative firms ATC at this output?
f. What is the representative firms AVC at this output?
g. Should the representative firm shut down in the short run? Why or why not?
h. What output for the representative firm will minimize ATC? (hint: use solver or find by solving MC=ATC, or if you are calculus whiz find ATC’=0)
i. Is the lamp industry in equilibrium? Why or why not?
j. Suppose total industry demand at P=$50 is 3000. How many firms are operating in the industry?
k. What would you expect to happen to future firm population in the lamp industry?
l. What would you expect to happen to future price in the lamp industry?
m. What industry price will result in LR industry equilibrium?

Consider the data presented in the table:

a. What is the marginal propensity to consume for households in this economy?

Instructions: Enter a numerical value rounded to two decimal places as necessary

b. Based on the assumptions of our aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports.

Instructions: Enter numerical values into the table. Enter whole numbers only.

What is this type of expenditure called?

• Autonomous expenditure

• Equilibrium expenditure

• Income-dependent expenditure

• Dependent expenditure

c. For each level of actual aggregate expenditure, calculate unplanned inventory investment.

Instructions: Enter numerical values into the table. Enter whole numbers only. If the value is negative, you must enter a minus sign.

d. What is the equilibrium level of aggregate expenditure in this economy?

Instructions: Enter a numerical value rounded to two decimal places as necessary.

e. For each level of actual aggregate expenditure, label the future output tendency as “increase,” “decrease,” or “same” based on what you expect to happen to future output.

Instructions: Fill in the last column of the table.

f. At the equilibrium level of aggregate expenditure, which of the following are true?

Instructions: Click each box to empty the box and then click each box to select the correct answers. There may be more than one correct answer.

• Firms have no incentive to change the level of their output.unanswered
• Unplanned investment is positive.unanswered
• Unplanned investment is zero.unanswered
• Consumption is maximized.unanswered

This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Ne

How does L'oreal approach social responsibility.