Describe Keynes's policies to promote full employment and stability.

You have been asked to perform a stock valuation prior to the annual shareholders meeting next week. The two models you have selected to value the firm are the dividend discount model and the discounted cash flow model. Explain why the estimates from the two valuation methods differ. Address the assumptions implicit in the models themselves as well as those you made during the valuation process.

Modifying a product to increase its “value added” benefits customers and can also enhance supplier profits. For example, suppose an improved version of a product increases customer value added by $25 per unit. (In effect, the demand curve undergoes a parallel upward shift of $25.)a. If the redesign is expected to increase the item’s marginal cost by $30, should the company undertake it? b. Suppose instead that the redesign increases marginal cost by $15. Should the firm undertake it, and (if so) how should it vary its original output and price?

Suppose that you want to buy a bond with a face value of $10,000. The bond has annual coupon payments at a 20% interest on its face value each year. If you want a yield to maturity of 16%, what will be the maximum price of the bond? (Select the closest answer) (The bond matures in 10 years and the first payment will be received in one year.)

• A. $23589.1
• B. $11933.3
• C. $10946.7
• D. $12369.8

Share your thoughts and conclusions about entrepreneurs, profits, and the price system.

A television station is considering the sale of promotional DVDs. I can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of $1,200.00 plus $2.00 for each DVDs; supplier B has no set-up fee and will charge $4.00 per DVD. The station estimates its demand for the DVDs to be given by Q=1,600-20P, where P is the price in dollars and Q is the number of DVDs. (price equation is P=8-Q/200.)

a. Suppose the station plans to give away the video. How many DVDs should it order? From which supplier?

b. Suppose instead that the station seeks to maximize its profit from sales of the DVDs. What price should it charge? How many DVDs should it order from which supplier? (hint: Solve two separate problems, one with supplier A and one with supplier B, and then compare profits. In each case, apply the MR=MC rule.)

In Frederick Douglass's view, how were slaves, in their desires for freedom, closer to the founding ideals than the whites who celebrated the Fourth of July but preserved slavery?

1) Mundell – Fleming model and theory of optimum common currencies:
a) Assuming perfect capital mobility and flexible exchange rates, explain the impact on the Irish economy of a decrease in interest rates in the U.S. In your answer, clearly indicate the effect on income, rate of interest, balance of payments. (Show your answer with the help of an IS-LM-BP diagram and explain the mechanisms. Consider Ireland a small open economy with flexible exchange rates.
b) Are Monetary and Fiscal policies effective in the case of question (a)? Explain with graphs.
c) Discuss the notion of unholy trinity.

3) ________ is a particular problem in ________ , which contain a disproportionately large share of the world's wild species, but which are also under great pressure to pursue modern economic development. A. Habitat destruction; developed countries B. Habitat destruction; developing countries C. Biological uniformity; developed countries D. Biological uniformity; developing countries

1. A rise in the real rate of interest ________ the opportunity cost of holding an inventory of a given size, and therefore ________ desired investment expenditure.

Select one:

a. decreases; decreases

b. decreases; leaves unaffected

c. increases; decreases

d. decreases; increases

e. increases; increases

2. If nominal national income increased by 20% over a certain period of time while real national income increased by 10%, then

Select one:

a. everybody in the economy became worse off.

b. inflation has decreased during this time period.

c. the price level has increased by approximately 10%.

d. the price level has declined by about 10%.

e. the labour force increased by 10%.

3. Suppose drought destroys many millions of acres of valuable Canadian farmland. The effect on the Canadian economy would be

Select one:

a. no change in Canada's production possibilities boundary.

b. to move its production possibilities boundary outward.

c. to move it along its production possibilities boundary.

d. to move its production possibilities boundary inward.

e. to move it beyond its production possibilities boundary.

4. Consider a simple macro-model with demand-determined output. An exogenous increase in the domestic price level will ________ the real value of the private sector's wealth, which leads to ________ in autonomous consumption and thus ________ shift in the AE function.

Select one:

a. increase; an increase; an upward

b. increase; a decrease; a downward

c. increase; an increase; a downward

d. reduce; a decrease; a downward

e. reduce; an increase; an upward

5. A farmer raises free-range chickens, which he sells to a company for $1000. That company sells the processed chickens to a grocery store for $1600, which in turn produces roasted chickens which are sold to the public for $2400. Based on this information, the value of total output is equal to

Select one:

a. $4000

b. $2400

c. $1600

d. $5000

e. $1400

i need a 7 min persuasive speech about the effects of pollution today

In focus on interest rate risk, can you explain why banks offer higher interest rates on longer term CD's than they do on short term CD's?

Contracting around observable characteristics to try and solve information problems are examples of

A. first best efficient outcomes

B. second best efficient outcomes

C. positive externalities

D. negative externalities

E. creative destruction

Given the Demand function from Part 1: D(p) = 64 2p , The monopolist's cost is equal to C(Q) = Q2 + 2Q:

PART II. Now take the same demand function as in Part I but imagine that the market has two firms instead of 1. Also assume that the marginal cost of each firm is equal to 4. Market structure is therefore characterized as a duopoly. Suppose that firms compete by choosing their output levels simultaneously.

(14) (2 points) Write down the profit expressions of Firms 1 and 2.
(15) (4 points) Derive the best-response functions of Firms 1 and 2.
(16) (3 points) Plot the best-response functions of Firms 1 and 2.
(17) (2 points) Find the output choice of each firm. Show it on the graph you drew in (17). For 18-19, first state if the statement is True or False. Then, give a brief explanation.

(18) (3 points) Oligopolies create less deadweight loss than monopolies.
(19) (3 points) Consider a duopoly where firms compete by choosing quantities one after the other. The firm which makes its output choice first, enjoys more profits as it can set a higher price.

1) Suppose the cost of basket is P_eu = 300 euros in the Eurozone and P_Turkey =800 liras in Turkey. Suppose the home country is Turkey, and the exchange rate is 1.8 liras per euro.

a) Write the absolute purchasing power parity (PPP) equation. Check to see whether PPP holds for the lira-euro exchange rate.

b) Calculate the real exchange rate. Determine whether lira is over-valued, under-valued or neither.

c) Write two reasons for why the tendency for PPP to hold is weak in the short-run.لا