What is the Global Strategy to Improve Agricultural and Rural Statistics?

Princess Leia and Luke Skywalker find themselves trapped on the moon of Alderaan. While they are waiting for the rebel fleet to rescue them, they can survive by eating daptoids and polytheerons. One of either species will provide a meal for two rebels. These are both tasty but difficult to catch food sources. Of course, Leia is better at catching them than Luke.

Below is a table of the results Leia prepared.

1. Who has the absolute advantage in catching daptoids? For catching polytheerons?
2. Would it make sense for the same person to be catching both while the other watches?
3. What opportunity costs do Luke and Leia have for these food items?
4. Who has the comparative advantage in hunting daptoids? Polytheerons?
5. Draw the 12 hour linear production possibilities curve for Leia and Luke. Put these on the same graph, using graph paper is recommended.
6. What would you recommend these exiles do (based on 12 hours)?

1) A lower price for batteries would result in a(n)

A) decrease in the demand for flashlights.

B) increase in the demand for batteries.

C) Increase in the demand for flashlights.

D) Decrease in the demand for batteries.

2) If Kindle e-readers and Nook e-readers are substitutes, a lower price for Nooks would result in a(n)

A) Decrease in the demand for Kindles.

B) Increase in the demand for Nooks.

C) Increase in the demand for Kindles.

D) Decrease in the demand for Nooks

3) Which of the following demonstrates the law of supply?

A) When shirts producers expected shirt prices to rise in the near future, they decreased their current supply of shirts.

B) When salt prices rose, salt sellers decreased their quantity supplied of salt.

C) When the price of soccer balls rose, soccer balls sellers increase their quantity supplied of soccer balls.

D) When computer production technology improved, computer producers increased their supply of cars.

a) Explain the relative merits of fixed and floating exchange rate regimes.

b) From the perspective of in international business, what are the most important criteria in a choice between the systems?

c) Which system is the more desirable for an international business?

1. In your own words, explain the difference between price ceilings and price floors. Why would an economy use them? Who is hurt by each one and why? Who is helped by each one and why?
2. Why would the government support price ceilings and price floors knowing that they are inefficient? What might they be trying to accomplish?

Answer the following questions related to GDP

1. What is the relationship between savings, capital formation, and consumption?

2. GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.

3. Explain why the value of intermediate goods produced and sold during the year are not included separately as part of GDP, but intermediate goods produced and not sold are included separately as part of GDP.

4. Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.

5. Suppose you know that Canada's GDP in 1999 was $900 billion, and Canada's GDP in 1933 was $9 billion. What judgment about the change in the economic well-being of average Canadians could you make? Explain.

2) Show that second-order conditions for cost minimization are weaker than second-order conditions for profit maximization.

How does Chambers justify changing Cisco’s business structure from command and control to teamwork and collaboration?

Identify 4-5 U.S. cities that have rent control (price ceiling). Discuss the specific policy each city has in place, the purpose of the policy, and for how long it has been in effect. Analyze the effects of each policy. Use the demand and supply model to illustrate your analysis.

Suppose a billionaire takes an extra hour to arrive at work each day because he must drive slowly through a crowded slum. The billionaire proposes that the slum be demolished. The monetary gains of getting the billionaire to arrive at work faster are assessed at $10m. The monetary costs to the 1,000 residents of losing their homes is only $1m. So a cost-benefit analysis would recommend that the slum be demolished, even though the suffering it would inflict far outweighs the hedonic benefit to the billionaire.

● Make your own example of a situation where a cost-benefit analysis would make a recommendation that would reduce the general well-being. (150-400 words)

● What is “diminishing marginal utility of income”, and why is it relevant to the story you wrote?

● What is “equal marginal utility of consumption”? Is it a reasonable assumption? (Goodstein Chapter 2)

● Why do neoclassical economists (the majority of economists) not assess “well-being” when doing cost-benefit analyses? Why do they only use monetary costs and benefits? (150-400 words).

a) How do supply and demand work to determine the amount of a factor of production a firm in a competitive market employs?

b) What does marginal revenue productivity have to do with competitive demand for a resource?

The many identical residents of Whoville love drinking Zlurp. Each resident has the following willingness to pay for the tasty refreshment:

The cost of producing a bottle of Zlurp is $1.50, and the competitive suppliers sell it at this price. (The supply curve is horizontal.)

Each Whovillian will consume_____bottles and receive a consumer surplus of_____

.

Producing Zlurp creates pollution. Each bottle has an external cost of $1.

Taking this additional cost into account, total surplus per person in the allocation you previously determined decreases to________

.

Cindy Lou Who, one of the residents of Whoville, decides on her own to reduce her consumption of Zlurp by 1 bottle.

Cindy's consumer surplus (ignoring the cost of pollution she experiences) is now______. Her decision______increases   total surplus in Whoville by_____

.

Mayor Grinch imposes a $1 tax on each bottle of Zlurp.

Consumption per person is now_____bottles. This yields a per-person consumer surplus of_____not including the cost of pollution, a per-person external cost of_____, and government revenue of_____m per person. Total surplus per person is now_____as a result of this policy. (Hint: Total surplus is equal to consumer surplus minus the external cost of pollution plus government revenue.)

Based on your calculations, you would or wouldn't   support the mayor's policy because it decreases or increased welfare compared to before the tax.

(1) Suppose duopolists face the following market demand:

D=100-2P

And both have MC=20

(a) Assume they compete by simultaneously choosing prices (Bertrand-style). What is the Nash equilibrium outcome? List price, quantity supplied by each firm, and profits for each firm. (b) Assume they compete by simultaneously choosing quantities (Cournot-style) with prices set to clear the market (i.e. demand=supply). What is the Nash equilibrium outcome? List price, quantity supplied by each firm, and profits for each firm. (c) Assume the firms successfully collude by setting prices at the monopoly price and splitting the demand in half. What is the outcome? List price, quantity supplied by each firm, and profits for each firm.