With more natural disasters occurring, with rising political expectations that government will provide aid, and with the federal government shouldering more of the cost, are you comfortable with the implication that this could lead to a growing concentration of power in the federal government?

1. (10 pts) You just bought a house for $400,000. You put 20% down and financed the rest over 30 years at 6% nominal interest. Assuming equal monthly payments over the term of the loan, what are the monthly payments? What is the effective rate? (Chapter 4)

2. (10 pts) What would you need to invest today in an account that had a nominal rate of 8% compounded quarterly, if you wanted $12,000 in 4 years? What would be the investment required if the account compounded semi-annually? What is the effective rate of each investment? (Chapter 3)

3.

1. (10 pts) Assume the following cash flows: (Chapter 4)

Assuming an 9% interest rate, what is the value of A required to make the present value of the cash flows equal to 0?

Working with labor force statistics

You are looking over data on the U.S. labor force, employment, unemployment, persons not in the labor force, and discouraged workers from the November 2019 Current Population Survey. You are particularly interested in the problem of discouraged workers. You make several quick calculations.

First, you determine the official unemployment rate.

Second, you determine the unemployment rate if all discouraged workers are considered to be part of the labor force (and thus, unemployed).

Finally, you calculate what would happen to the official unemployment rate if 500 of the discouraged workers begin actively searching for work.

When you write a report on labor market dynamics, which of the unemployment rate measures will you choose as a gauge of the state of the labor market in November 2019? Why?

What are the key resources of an electrical service business?

15. If the central bank keeps the overnight rate unchanged, a drop in financial confidence will lead to…

(a)     Lower investment and net exports.

(b)     Unchanged investment and net exports.

(c)     Lower investment and unchanged net exports.

(d)     Unchanged investment and lower net exports.

15.  Choice:  

Explanation:  

16. Comparing the size of the monetary base and the money supply...

(a)     The two are equal because the banks prudently keep reserves equal to deposits.

(b)     The monetary base is typically bigger because it includes treasury bills.

(c)     The money supply is bigger because banks make loans.

(d)     The money supply is bigger because it includes treasury bills.

Assume that the economy is operating at full employment (long-run equilibrium). Use our AD and AS analysis to answer the following questions.

1. Graphically show the current economic state with an AD curve, a (short-run) AS curve and a long-run AS curve. Compare current GDP and potential GDP.

Tim purchases cookies (C), brownies (B) and jam (J). At his current levels of consumption, his MU_C = 10, MU_B = 15, and MU_J = 20. The price of a cookies is $2, the price of brownies is $3, and the price of jam is $4. Is the Tim maximizing his utility? If so, why? If not, what must he do to move his consumption toward equilibrium?

There are 2 players: Albert and Barbara. Albert has 100 cards which he distributes in 2 buckets. After that, he leaves 1 bucket for himself, and offers Barbara the other one. Barbara saw how Albert distributed the cards, but does not know which of the buckets Albert is offering her. Valuation of 1 card by Albert - 1 pound, valuation of Barbara -1.5 pounds. Barbara offers the price for the bucket offered to her, and Albert decides to accept the offer or refuse. They both want maximum payoff. If one player is indifferent, then he chooses an action that will benefit the other player.
a) In one bucket there are 100 cards, and in the other 0. Albert knows how many cards are in the boxes, but Barbara does not. What price should Barbara offer?
b) What is the best card distribution for Albert?

Suppose the firm knows that, there are three types of buyers: ?? = 100 − 4?,?? = 400 − 6?, and ?? = 300 − 10?. The firm’s ATC=MC=5.

1. Suppose the firm operates as a single price monopoly, what will be the market price, market quantity, and profit?

2. What will be consumer surplus, producer surplus, and deadweight loss? Draw a graph!

3. Under which conditions can this firm use segmented price discrimination?

4. Suppose that the firm conditions from c) hold, what should the firm charge in each

   market? What is output in each market? What is total market quantity? What is the

   firm’s profit?

5. Does segmented price discrimination of the market improve efficency? Why?

Suppose a pro sports franchise faces demand for tickets to its home events according to the function Q = 13000 - 50P, where P is the price per ticket in dollars, and earns marginal revenue according to the function MR = 260 - 0.04Q, where Q is the quantity fo tickets. For this franchise, the vertical intercept of the demand function is

a. greater than the vertical intercept of the marginal revenue function

b. equal to the vertical intercept of the marginal revenue function

c. less than the vertical intercept of the marginal revenue function

d. equal to 13,000 tickets sold

Suppose the sports franchise discussed in item above incurs marginal costs according to the function MC = 80 + 0.01Q. Assuming the franchise is a profit-maximizer, it will generate consumer surplus in this market of:

a. $676,800

b. $259,200

c. $129,600

d. none of the above

What does it mean to someone to connect in today’s world, and how does writing facilitate those connections?

1. Consider the orange-growing industry, which hires workers on a common labor market and sells oranges on a common product market. Firms in the industry have nearly identical production functions and capital.   Suppose that a freeze affects the industry in the following way: some oranges on each tree are damaged and cannot be sold, but others are fine. As a result, each worker takes longer to harvest oranges from each tree. What is the effect on Labor Demand for workers in this industry? Think carefully about all the components of Labor Demand.