How can the government affect productivity?

Argue AND Defend

Censorship restrictions in other countries on such information technology as Google and other Web sites is justifiable; U.S. and other western nations should not try to impose their values and norms on censoring practices. Why or why not.

11)Answer based on the following: Interest rate on U.S. assets = 5%, interest rate on European assets = 12%, the spot rate of exchange = 0.90 Euros/$, the one year forward rate of exchange = 0.95 EUROS/$. The European citizen should hold which asset?

12)If real interest rates in Canada are above those in the Euro area,

13)If there is more demand for U.S. stocks relative to stocks issued elsewhere,

14)Horizontal FDI involves

15)Based on the offshoring articles that you read for this class

Graphically explained equilibrium unemployment and disequilibrium unemployment

- The write up shouldn't be more than two pages

f you were summarizing the history of the 18th century Atlantic world (i.e.: the century from 1700-1800) to a friend or family member, what would you highlight as being the 3 most critical events or developments of this era? As always, defend your choices with as much specific historical knowledge and analysis as possible.

The inverse market demand curve is P = 170 – 4Q. Two firms in this market are evenly splitting the output. Each firm produces the product at a constant marginal cost of $10. Which of the following statements is TRUE? I. If one firm produces 2 more units of output, its profits will rise to $864. II. If neither firm cheats, each firm will earn a profit of $800. III. If one firm produces 3 more units of output, the other firm's profits will fall to $680.

Exercise 1. Firm Supply in the Short Run

Consider a firm with the following production function: y=L^½K^½. The cost function is C=w∙L+r∙K.

1. In the short-run the input K is given at K=100. What is the short-run production function y(L)?

2. Let w=0.1 and r=1. What is the cost function C(y)? Using the expression y(L) you found in part a, transform it into L(y) and plug it into the cost function C(L) to get C(y). Was a minimization necessary? Why or why not?

3. Given C(y) you find in part b, find AC(y) and MC(y). What is the firm’s short-run supply function S(p)?

4. At what level of y is the average cost minimized?

5. When the market price is p=0.2, how much does the firm supply? Find S(0.2). What is the firm’s profit? What is the firm’s producer surplus? How many workers does the firm employ? Find L.

6. When the market price is p=0.1, how much does the firm supply? Find S(0.1). What is the firm’s profit? What is the firm’s producer surplus? How many workers does the firm emply? Find L.

7. When the market price is p=0.3, how much does the firm supply? Find S(0.1). What is the firm’s profit? What is the firm’s producer surplus? How many workers does the firm emply? Find L.

The corona virus pandemic has been, and will be, very costly to federal, state, and local governments as well as to businesses and to consumers. According to the Congressional Budget Office (2020):

CBO expects that the economy will contract sharply during the second quarter of 2020 as a result of the continued disruption of commerce stemming from the spread of the novel coronavirus. The following are CBO’s very preliminary estimates, which are based on information about the economy that was available through this morning and which include the effects of an economic boost from recently enacted legislation.

• Gross domestic product is expected to decline by more than 7 percent during the second quarter. If that happened, the decline in the annualized growth rate reported by the Bureau of Economic Analysis would be about four times larger and would exceed 28 percent. Those declines could be much larger, however.
• The unemployment rate is expected to exceed 10 percent during the second quarter, in part reflecting the 3.3 million new unemployment insurance claims reported on March 26 and the 6.6 million new claims reported this morning. (The number of new claims was about 10 times larger this morning than it had been in any single week during the recession from 2007 to 2009.)
• Interest rates on 10-year Treasury notes are expected to be below 1 percent during the second quarter as a result of the Federal Reserve’s actions and market conditions. (Swagel, 2020, para. 1)

How will the decline in GDP and the rise in unemployment, and low interest rates affect federal, state, and local governments?

(a) Does the assumption of diminishing marginal product of an inputs x1 and x2 imply strictly convex isoquant curves?

(b)Does the assumption of strictly convexity in the isoquant curves imply diminishing marginal products to input factors x1 and x2.

Discuss the growing income inequality in the U.S. and the world with someone mature enough to have some perspective from experience about it. Ask them what they think about the widening gap between the rich and the rest of us in America, as our course materials speak of this problem. How has the economic trend for middle class Americans affected them? How as it affected you?

Explain the relationship between public finance and market failure.

Question 1) In table 1, Calculate the marginal product of labor and average product of labor.

Table 1: Surfboard Production

Question 2) Surfboard Production Costs

1. Fill in the missing numbers from Table above for Total Fixed Costs (TFC), Total Costs (TC), Marginal Costs (MC), Average Variable Costs (AVC), Average Fixes Costs (AFC) and Average Total Costs (ATC).

Either graphically or descriptively, describe how an individual firm in a perfectly competitive market with other identical firms responds to an inward shift (decrease) in the demand curve for their product and the short run and long run implications this has for the market price and quantity. Additionally, illustrate either graphically or descriptively how the elasticity of supply for both firms and the market typically changes from the short-run to the long-run.