Discuss the following statement.

Monetary policy can be inflationary without being expansionary.

The tragic and ongoing Coronavirus pandemic highlights many economic issues we have recently covered in class, including price controls, public goods, and externalities. The purpose of this extra credit assignment is to give you an opportunity to think about and write about these the above economic topics as they relate to the management of the Coronavirus pandemic. Here is the assignment:

1. Public goods

a. Explain the public goods problem

b. Explain the solution to the public goods problem

c. Provide four examples of public goods that are instrumental in managing / solving the Coronavirus outbreak (one example of a public good is World Health Organization)

d. Comment on how effective you think these public goods are currently functioning. What could be done to improve their functioning.

2. Price controls – there is currently a lot of information in the media about states competing for personal protective equipment (PPE) in the marketplace, as well as a spike in prices for these goods.

a. Draw a S&D graph showing an analysis of rising PPE prices

b. Show the potential impacts of a price control on PPE

c. Do you think price controls should be imposed? What are the advantages and disadvantages?

d. Should price controls be imposed on other goods, such as food and other essentials. Why or why not?

3. Externalities

a. Explain the varies externalities associated with social distancing (or violating social distancing rules).

b. Discuss how social distancing might create externalities for the economy.

c. Draw a diagram showing an analysis of one of these externalities.

what was the “Market Revolution”? What was the driving force behind it?

Topics that you might want to include are

• The growth of the cotton sector
• “Revolutions” in transportation and communication
• Changes in agriculture (broadly conceived)
• The impact of the legal system, especially the Supreme Court, on the Market Revolution

Other developments you think important that flowed from the Market Revolution

Write Essay

1..A pure monopolist will maximize profits by producing at that output where price and marginal cost are equal.
A)True
B)False

2..In the long run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to:
A)average total cost.
B)marginal revenue.
C)average variable cost.
D)average cost.

3..Which is not true for a monopolistically competitive industry?
A).Firms tend to operate with excess capacity.
B). Each firm faces a downward-sloping demand curve.
C). These firms earn zero economic profits in the long run.
D). The portion of the marginal-cost curve above the average-variable-cost curve is the short-run supply curve for the firm.

4. Price exceeds marginal revenue for the pure monopolist because the:
law of diminishing returns is inapplicable.
A)demand curve is downsloping.
B)monopolist produces a smaller C)output than would a purely competitive firm.
D)demand curve lies below the marginal revenue curve.

5. If a monopolist is producing quantity whereas marginal revenue is equal to $125 and the marginal cost is equal to $125, the monopolist should:
A)increase production and lower the price to maximize profits.
B)continue producing at the current price to maximize profits.
C)decrease production and increase price to maximize profits.
D)increase production and increase price to maximize profits.
E)decrease production and decrease price to maximize profits.

6. The Clayton Act of 1914:
A)outlawed price discrimination, tying contracts, intercorporate stockholding, and interlocking directorates that lessen competition.
B)prohibited unfair or deceptive acts or practices in commerce that tend to reduce competition.
C)outlawed vertical and conglomerate mergers.
D)prohibited one firm from acquiring the assets of another when the effect was to limit competition.

7. Which of the following is not a barrier to entry?
A)patents
B)X-inefficiency
C)economies of scale
D)ownership of essential resources

Assume that you work for a large manufacturing company that utilizes both capital (K) and Labor (L) in the production process. Explain how a tax on capital would affect your operations and how you would estimate the welfare effects on your company.

Addressing safety and health issues in the workplace saves employers money and adds value to their businesses. According to the National Safety Council's Injury Facts 2017 Edition, estimates place the total costs associated with work-related deaths and injuries at $142.5 billion in 2015. These are expenditures that come straight out of company profits. When employees stay safe and healthy, employers realize substantial direct and indirect cost savings, and increased productivity and profitability. Employees and their families benefit because their family lives are not hindered by injury or illness, their stress is not increased and their incomes are protected. The safety and well-being of employees do not have to be sacrificed to drive business performance.

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Injury Facts 2017 Edition also reports that the education and health services, manufacturing and retail trade industry sectors had the highest number of nonfatal occupational injuries and illnesses involving days away from work.

According to the Bureau of Labor Statistics (BLS) May 2015 National Industry-Specific Occupational Employment Estimates, more than 12 million people are employed in the North American Industry Classification System (NAICS) manufacturing sectors (31, 32 and 33) with slightly more than 1.7 million in the food and beverage manufacturing industry.

A company's productivity and profitability goes hand-in-hand with a safe and healthy workplace. To enhance workers performance while maintaining a safe and healthy workplace, employers must strive to reduce work-related injuries and illnesses by creating a structure and framework for identifying potential risks and then problem-solving. Within the food and beverage manufacturing industry, key risks include manual handling and repetitive motion tasks; slips, trips and falls on the same level; machinery related hazards; confined space entry: and powered industrial truck related hazards.

Manual handling & repetitive motion tasks

Manual handling is any activity that requires the use of force to lift, lower, push, pull, carry, or otherwise move or hold an object or load. Repetitive motion is any movement that is repeated with little or no variation every few seconds.

Typically, manual handling injuries result from overexertion and repetitive motion injuries are influenced by how often a movement is repeated, the speed of the movement, the muscles involved and the force required. Overexertion due to lifting / lowering or repetitive motions accounts for 34 percent of workplace injuries that result in lost work days (Source: Injury Facts 2017 Edition). Injuries to the back, neck, hands, wrists, arms and shoulders due to manual handling and repetitive motion are common.

Manual handling and repetitive motion injuries can be prevented by:

* Reducing the physical exertion of the hands, arms and shoulders whenever possible--use power tools, reduce the movement, and rotate job tasks so that different movements and muscle groups are used.

* Reducing the need for excessive gripping strength or force--use fixtures to hold products, parts or tools; grip with the whole hand; minimize gripping with just the fingertips; and use two hands to equalize the weight handled in each.

Slips, trips & falls on the same level

Many materials used in the manufacturing of food and beverages are inherently slippery--water, oil/grease, grains, animal parts, etc. Keys to preventing slips, trips, and falls on the same level include:

* Ensuring that the walking/working surface provides sufficient friction--review the different types of flooring that can be used to increase the amount of friction while maintaining the ability to be sanitized.

* Encouraging the use of slip-resistant footwear in conjunction with proper housekeeping and walking/working surfaces--the slip hazard still exists if relying on slip-resistant footwear only.

Machinery-related hazards

Most machines used in the food and beverage manufacturing industry have moving parts that can cause injuries such as crushed fingers or hands, amputations, burns or even blindness. Safeguards are essential for protecting workers from these preventable injuries. These hazards must be eliminated (best option) or controlled.

The dangerous moving parts that need safeguarding fall into three fundamental areas--the point of operation, the power transmission and the moving parts. To protect workers from machinery-related hazards, safeguards must prevent contact between the worker and the machine, and minimize the possibility of workers placing any body parts into the moving machine parts. Safeguards must be designed to be secure and not easily tampered with or removed. They must also ensure that no objects can fall into the machines. Safeguards should allow for safe lubrication without removing the guard and not create an unacceptable impediment for workers.

Confined space entry

Silos, tanks, mixing vats, hoppers and storage bins are all typical confined spaces found in the food and beverage manufacturing industry. Fatalities in confined spaces are a recurring tragedy and many occur during rescue attempts.

The first step to prevent confined space fatalities is to determine if a confined space hazard exists. Many workplaces have areas that are considered "confined spaces," because even though they are not necessarily designed for people, they are large enough for workers to enter to perform required tasks. A confined space also has limited or restricted means for entry or exit and is not meant for continuous occupancy.

Employers must take measures to prevent workers from entering confined spaces, label all confined spaces, and train workers to recognize what constitutes a confined space and the hazards that may be encountered.

Powered industrial trucks

Powered industrial trucks, sometimes referred to as forklifts or lift trucks, are widely used in the food and beverage manufacturing industry to receive and transport raw materials, transfer products to different locations and to load trucks.

Incorrectly operated and maintained forklifts pose a serious hazard to both the operator and to other workers in the facility. Hazards associated with forklifts include overturns, workers on foot being struck and workers falling off forklifts. The potential for carbon monoxide poisoning from exhaust emissions is another hazard associated with forklifts.

Employers must ensure that forklift operators are properly trained on each type of truck on general guidelines, tips for driving safely, and load issues to consider.

Conclusion

Every year workplace illnesses, injuries and deaths cost our nation billions of dollars. Investing in a good safety and health program can save businesses $4 to $6 dollars for every $1 invested (Source: www.osha.gov $afety Pays).

This article discusses the effects of workplace safety and productivity in general and specifically within the food and beverage manufacturing industry.

Answer the following questions: According to the National Safety Council’s Injury Facts 2017 Edition, what is the total estimated costs of work related injuries and deaths? What is the incentive for companies to better manage work safety? What are the biggest safety risks in the food and beverage industry? What can companies in this industry do to reduce these risks?

Consider the following Keynesian economy.

Consumption function: Ct = 20 + 0.7(Y-T)

Investment Function: It = 42 −100r

Government Spending: Gt = 50

Tax Collections: Tt = 50

Real Money Demand Function: (Mt/Pt) = 6Yt − 2000Rt

Money Supply: = Mt = 2800

Price Level: Pt = 2

i. Derive the equation for the IS curve expressing r as a function of Y only. For interest rates ranging from 0-8, graph the IS curve.

ii. Derive the equation for the LM curve expressing r as a function of Y. For interest rates ranging from 0-8, graph the LM curve.

iii. The point of intersection between the IS-curve and the LM-curve depict short equilibrium interest rate and income. Solve for the short run equilibrium interest rate and income based on the IS and LM equations derived in parts a and b above. Show the short equilibrium values of interest rate, r and income, Y that you have solved for on a graph.

I wonder how can I differentiate mass marketing, differentiate marketing, niche marketing, and 1:1 marketing? give some examples also for clear explanation.

3) Suppose the real interest rate falls in the two-period model (where income and taxes are exogenous). Consider the income and substitution effects and explain in words and through diagrams how this change affects current consumption, future consumption, and savings of a consumer who is a

a) lender

b) borrower

c) Which type of consumer (lender or borrower) becomes better off after the interest rate change? Explain in words.

Firm Q offers a fairly lucrative defined benefit pension. However, the full benefit is reserved for those who stay at

least 30 years. Moreover, in order to qualify for any reasonable pension a worker must first be vested. A worker is

only vested (eligible for full retirement benefits) at Firm Q after having been there at least ten years. According to

the Lazear contract model this combination of vesting and a lucrative defined benefit pension plan is designed

to:  

An increase in investment creates a ______ ______ in aggregate demand, the aggregate demand curve shifts ________ potentially brining ________ phase of the business cycle.

larger; increase; rightward; expansion

larger; decreases; leftward; recession

smaller; increases; rightward; expansion

smaller; decreases; leftward; recession

1. ( A ) What is the WACC (weighted cost of capital) for a company if it borrows from two sources: bank loan of 25 million at 6% per compounded monthly, and retained earning of 10 million with earnings per share of 35 cents and price per share 14.00 dollars. Income tax rate is 35%.

( B )When using the “longest life” planning horizon what issue (or issues) might you have to consider for alternatives whose cash flow profiles are shorter than the “longest life”?

- Choice a    determination of salvage values for any truncated cash flows

- Choice b    the validity of the assumption that cash flow profiles are repetitive

- Choice c    both choice a and choice b

- Choice d    Neither choice a nor choice b

( C ) . What is the future worth of the following: At t = 1 you deposit 10,000   At t= 2 you deposit 10,500 .   Every year you increase your deposit amount by 500.   This goes on until t = 60.   I = 6%. How much is in the account at t = 60?

What are the main arguments made by opponents of government “stimulus” spending? How does Wolfson address each of these points? How is this question especially relevant in spring 2020?