Explain the steps of how a bill becomes a law.

Where does legislation begin?

What are the many steps through Congress and where does the bill end up?  

3. Discuss international capital movements. In particular:

1. State the difference between portfolio investments and direct investments.
2. List the main determinants of both types of capital movements.
3. Argue about the role of risk diversification in explaining “two-way” capital flows.

1. Suppose that Nation 1 can import good X from Nation 2 at a price P₁=1.20 or from Nation 3 at a price P₂=1.50. If the domestic demand and supply curves are given by the following equations:

Demand: P=80-2Q            Supply: P=5+3Q

1. Under free trade, how many units of good X are consumed? How many units of good X are produced domestically? How many units of good X are imported? From which Nation?
2. If a 30% import tariff is imposed, how many units of good X are consumed? How many units of good X are produced domestically? How many units of good X are imported? From which Nation?

Now, suppose that Nation 1 agrees about a custom union with Nation 3 only (that is, trade is free between Nation 1 and Nation 3, while a 30% import tariff is still in place between Nation 1 and Nation 2).

3. How many units of good X are consumed? How many units of good X are produced domestically? How many units of good X are imported? From which Nation?
4. What is the welfare change due to the custom union?

We discussed four types of market failures in class. List two types of market failures, give an example of market or type of product for which this failure is likely to exist, give an example of a solution, and state whether it is an incentive compatible approach or a command-and-control approach.

What strategies should social media companies (Twitter, Instagram,facebook) take when approaching sport and sport marketing? What will drive users, ad sales, and revenue? Why?

(a) If your utility is represented by u(x; y) = min(x+2y; 2x+y);what
do your indi¤erence curves look like?
(b) Given your answer in (a), obtain the MRS (marginal rates of sub-
stitution).
(c) Suppose the prices of x and y are px = $3 and px = $1 and you
have 100 dollars. What would you choose?
(d) If px decreases to $1; what would you choose?
(e) Use the Slutsky decomposition to decompose the total price e¤ect
into the substitution e¤ect and income e¤ect when px decreases
from $3 to $1:

To test the effectiveness of a job training program on the subsequent wages of workers, suppose
we estimate the following model using individual level data:

log(wage_i) =b₀ + b₁train_i+ b₂ educ_i + b₃ exper_i + b₄ part-time_i + u_i (3)
where train=1 if a worker participated in the program and =0 otherwise, educ=the years of
education a worker has, exper=the number of years of work experience the worker has, and parttime=
1 if the worker held a part-time job(<30hrs/week) and zero otherwise. The error term, u,
contains unobserved worker ability (or motivation or enthusiasm).

a) If less able workers have a greater chance of being selected for (and participate in) the program,
and you use an OLS analysis, what can you say about the likely bias in the OLS estimator of b₁?
Explain/show how you arrived at this expectation of the bias. [3]

How long do you think it will take for U.S. gasoline demand to shed the influence of COVID-19? Explain.

Suppose the U.S. is considering raising the tariff on Chinese steel. The steel industry is the primary employer in the state of New Colombia. If a Senator from New Colombia votes to impose the tariff, does public interest theory or public choice theory better explain this behavior?