Which of the following two episodes in U.S. economic history were associated with a financial panic (choose two of the answers below)

Which of the following recessions was created by a supply shock that caused BOTH inflation and unemployment to increase

When a recession is caused by a negative aggregate demand shock, we would expect inflation to __________ and unemployment to ______________.

During the Great Recession, which of the following was the term used for the unconventional action by the Federal Reserve to lower long-term interest rates directly

What are the roles of business groups in emerging markets as a response to the presence of institutional voids and market failure?

Cost is a big issue with every company, and changing the technology is the biggest cost for most companies, how companies were able to cope with this problem and maintain the level of profit in a very competitive market?

Assume Purchasing Power Parity (PPP) holds in the long run between the U.S. and Europe. What does this already imply for the exchange rate E_($/€)? Write down your answer in the form of an equation and a brief explanation. (2 pts)

Now assume we have PPP and also that the quantity theory of money holds, with the velocity of money V constant and real output Y fixed and constant in both countries. Suppose that the Federal Reserve is expanding the supply of dollars by 5% per year, while the European Central Bank is expanding the supply of euros at 2% a year. What will happen to E_($/€) over time? Give a quantitative answer and a brief explanation. (2 pts)

To celebrate their Queen’s 90^th birthday, the country of Wonderland has decided to bake the world’s largest cake. The main ingredient of the cake will be flour. It has been estimated that the cake will use 50,000 tons of flour, which represents 20% of the current supply of flour. The current price of flour is $4000 per ton. Previous study has shown the elasticity of supply, ε_s, for flour to be 0.3 and the elasticity of demand, ε_d to be -1.2.

a. Assuming linear demand curves, what is the percentage change in the price of flour you would anticipate as a result of this project? What do you expect to be the change in quantity supplied as well as the change in quantity demanded by private consumers? What is the opportunity cost of flour that you would use in a cost-benefit analysis of this project?

[Hint: Es = (ΔQs/ΔP)(P/Qs) and Ed =(ΔQd/ΔP)(P/Qd) where Qs is current supply and P is current price.

Note that the amount of flour demanded by the project Qp = ΔQs – ΔQd]

b. Sketch the supply and demand for flour and show the opportunity cost on your sketch.

An economy has 100 workers producing two goods: coffee and grinders. Each worker can produce either two tons of coffee, or one grinder a year. Currently, 60 workers produce coffee, and the rest produce grinders. The price of a ton of coffee is $150, and that of a grinder is $300. Each worker earns $250 in wages a year. The government sector buys 40 tons of coffee a year. There is no depreciation or ROW in this economy. Assume that firms distribute ALL of their profits to the households as dividends.

1. Calculate the level of consumption, investment, government expenditures, and national product. Show your work!

2. The government taxes households’ income at 10%. Calculate the level of government tax revenues, and the government’s budget, and classify as surplus, balanced, or deficit.

3. Calculate savings of the household and firm sector as well. Verify that aggregate savings equals investment in this economy.

Bubba’s Burger Shack is the only cafeteria in a minimum-security prison; it sells burgers and fries. There are four different types of customers with the following willingness-to-pay or reservation prices for the two products:

Fries Burgers
Type I   $3.60   $0.30
Type II   $2.00   $2.00
Type III   $1.60   $2.40
Type IV   $0.10   $3.80
The cost of making an order of fries is constant at $0.80 and the cost of producing a burger is also constant at $1.20.

(a) Calculate Bubba’s profits if the Burger Shack follows a standard pricing policy and prices burgers and fries separately.

(b) Calculate Bubba’s profits if the Burger Shack follows a pure bundling strategy and sells burgers and fries together as a combo meal.

(c) Calculate Bubba’s profits if the Burger Shack follows a mixed bundling strategy, i.e. it sells burgers and fries as combo meal and burgers and fries separately.

Q2. What is the law of diminishing marginal productivity? How does the law of diminishing marginal productivity affect the cost of productions?

Provide an example from your workplace.

Impact of Corona Virus (COVID-19) on the economy?

What is the importance of internal communication in the workplace?

1. Fertility rates have important economic effects. Discuss at least one direct and one indirect effect of fertility on economic development.   

Use the data reported by the labour force force survey in July 2014 to answer the following questions.

Statistics Canada’s labour force survey reported the following situations in July 2014:

Sarah works 10 hours a week at McDonald’s. She’s available to work more hours but hasn’t looked for extra work.

Kevin spent the first six months of 2014 actively searching for a job but didn’t get hired. He believes there are no jobs so he has given up looking.

Pat quit the job he had for the past two years and is actively looking for a better paying job. He is available to work and he still searching for a job.

Mary is a new graduate who was hired while she was a student to start a job in August.

Johnny quit his band in June and has no job in July and is not looking for work.

Who does the LFS classify as being unemployed, a part-time worker, unemployed person, I discourage searcher, and not in the labour force?

_______ are unemployed, ______ is a part-time worker, _____ is a discouraged searcher, and ______ is not in the labour force?

A) Pat and Mary; Sarah; Kevin; Johnny

B) Pat and Kevin; Mary: Johnny; Sarah

C) Mary and Kevin; Pat; Johnny; Sarah

D) Mary and Sarah; Kevin; Johnny; Pat

How will the labour force change if the following events occurred?

1. Sarah start a second job
2. Pat finds a good job and is hired.
3. Mary takes a job at McDonald’s was she waits to start her new job.

A) Event 2 will decrease the labour force while 2 and 3 will increase it.

B) Events 1, 2 and 4 will not change the labour force.

C) Event 1 will not change the labour force, 2 will increase it and 3 will decrease it.

D) Event 1 will increase the labour force, but events 2 and 3 will decrease it.

How will the unemployment rate change if Sarah quits and starts to search for a full-time job?

A) rise

B) fall

C) remain unchanged

How will the labour force participation rate change if Kevin starts creating football apps in his garage and they turn out to be popular?

A) rise

B) fall

C) remain unchanged

Why did the USA have a great recession during 2007 to 2009 period? Was it cause by the financial crisis? Briefly explain. You may use parts of your research paper to answer the question.

Explain how an economy can experience long-run economic growth and deflation at the same time?

Compile a PowerPoint presentation to demonstrate your ability to provide a comprehensive presentation on the following:

• How does an increase in fiscal policy affect consumers' ability to purchase the iPhone 6 plus?
• How does a decrease in fiscal policy affect consumers' ability to purchase the iPhone 6 plus?
• Does monetary policy affect the sale and purchase of the iPhone 6 plus in a negative manner?
• Does monetary policy affect the sale and purchase of the iPhone 6 plus in a positive manner?