I want atleast 10 lines for each part. Please write your own opinion, dont copy paste.

Qs 1 a.Environmental Economics: How does the scarcity principle apply to the cap and trade system for carbon emissions?

Qs 1 b. Environmental Justice: Do technologically and economically advanced nations have a responsibility to help solve environmental problems in the developing world? Why or Why not?

Question 1: (Reasons for International Specialization) What determines which goods a country should produce and export?

Question 2: (The Current System: Managed Float) What is a managed float? What are the disadvantages of freely floating exchange rates that led countries to the managed float system?

Question 3: (Foreign Aid and Economic Development) Foreign aid, if it is to be successful in enhancing economic development, must lead to a more productive economy. Describe some of the problems in achieving such an objective through foreign aid.

Recently the Bank of Canada (BOC) asked retail stores to continue accepting cash from customers as payment for in store retail sales (ie for groceries or clothing). Why does the BOC have to make this request? Doesn’t Canada’s “legal tender” law require retailers to accept cash as payment by customers? Briefly explain.

The M2 Corporations is considering expanding its ergonomics consulting business. To do so, several pieces of equipment for performing a given analysis technique must be purchased. The CEO estimates that it will cost $155,000 to expand the business, resulting in $32,000 in revenues per year, $12,000 in expenses per year, and a salvage value of $3,000. If the useful life of the expansion is expected to be 15 years, and the corporation's MARR is 15%...

a) Should they undertake the expansion? YOU MUST USE BENEFIT/COST RATIO

b) What would the break-even point be for annual revenues for this problem?

1. What is the importance for the insurance firms to write “ideally insurable” loss exposures? If the applicant’s loss exposure is not “ideally insurable”, what can the insurance firms do to insure it?

Since the outbreak of the Coronavirus Canadian financial markets including those for corporate bonds have become less liquid.

(a ) What is the likely explanation for the reduction of market liquidity in financial markets? Briefly explain.

(b ) What action could the Bank of Canada (BOC) take to help restore market liquidity in the financial markets? Briefly explain how this action would work to improve market liquidity.

Assume in 2019 the rate of job separation is 1% and the rate of job finding is 19%. In 2020 during a recession, 85 out of every 1000 employed workers become separated from their jobs while 21 out of every 100 unemployed workers find jobs.

a. what is the natural rate of unemployment during the recession?

b. what is the percent change in the unemployment rate between 2019 and 2020?

c. describe a governmental program that will decrease the unemployment rate

Consider a 4-Firm Cournot market that is described by: p(Q)=100 - 0.2Q. Each firm faces no fixed costs and a constant marginal cost of $10.

a) Describe the market equilibrium under the 4‐firm Cournot structure. That is:

i) How much output will be made in total? (Hint: the formula is given on page 190.)

ii) How much output will each firm make?

iii) What price will be charged? (Hint: the formula is given on page 190.)

b) How much dead‐weight loss is experienced in the market compared to a perfectly competitive market?

Hint #1:Solve for the perfectly competitive equilibrium.

Hint #2:If you graph the market solution under perfect competition and under a 4‐firm. (Cournot market, you should be able to identify the area associated with dead‐ weight loss. Keep in mind that the marginal cost curve is horizontal at a cost of $10 per unit of output made)

The combination of falling U.S. housing prices and the large number of subprime borrowers defaulting on their mortgages just prior to the financial crisis of 2008 created a solvency problem for U.S. commercial banks that had provided mortgage loans to subprime borrowers and held those mortgages on their balance sheets (ie. they did not sell them to Special Purpose Vehicles). Briefly explain how these two events could threaten to make those U.S commercial banks insolvent.

True or False. In Canada, if a commercial bank has no “excess reserves” to lend out and a creditworthy customer asks the bank for a loan, then the bank must refuse the customer’s request for a loan. Briefly explain.

When the Bank of Canada lowers its target for the overnight interest rate (policy rate) the result is a lowering of the nominal interest rate on money market instruments. Under what circumstances will a reduction in the BOC policy rate lead to a reduction of the real interest rate on money market instruments. Briefly explain. No diagram is needed.

With the many local smaller special unique cultures around the world in many countries of all sizes: with globalization, should these small local cultures be protected from globalization?

Why yes? Why no?

Suppose a pandemic virus strikes and public health experts recommend everyone voluntarily stays at home until the spread of the virus subsides. For this analysis, assume the players are You and Everyone Else and each of you has the choice between staying at home or going out. If everyone goes out (regardless of what you do), then the pandemic will last longer and everyone receives a payoff of -3. Going out is worth a payoff of 2 (e.g if everyone goes out, then the payoff would be -3+2=-1 for every person that went out).

a. Draw a normal form representation of this game.

b. Do you have a dominant strategy?

c. What is the Nash equilibrium?

d. What does this suggest about public policy and voluntary stay-at-home orders?

The global economy is under significant stress to include U.S. state and local governments given expectation of lower income taxes and lesser fees and tolls.

a) How should expectations of financial stress impact the yield of municipal debt given actions by investors to include individuals and mutual funds?

b) whether the supply or demand curve within a loanable funds framework (% and $) should change and in what direction. Should state/local governments expect to pay more or less to borrow?

(150 words-300)

What is the link between institution and development? Explain practical evidences (considering any case studies you are familiar) that show the direct link between these two?