11. Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. As a result,
(x) aggregate demand shifts to the right
(y) the price level falls and real GDP rises
(z) the expected price level falls and bargains are struck for lower wages.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only
12. Suppose the economy is in long-run equilibrium. If there is an increase in consumer spending due to a tax rebate at the same time that a natural disaster adversely affects the availability of production inputs within the country, then in the short-run we would expect
A. the price level will rise, and real GDP might rise, fall, or stay the same.
B. the price level will fall, and real GDP might rise, fall, or stay the same.
C. real GDP will fall and the price level might rise, fall, or stay the same.
D. real GDP will rise and the price level might rise, fall, or stay the same.
E. the price level might rise, fall or stay the same and real GDP might rise, fall, or stay the same.
13. Suppose the economy is in long-run equilibrium. If there is a significant consumption (sales) tax increase at the same time that major new sources of oil are discovered in the country, then in the short-run we would expect
A. real GDP will fall and the price level might rise, fall, or stay the same.
B. real GDP will rise and the price level might rise, fall, or stay the same.
C. the price level might rise, fall or stay the same and real GDP might rise, fall, or stay the same.
D. the price level will rise, and real GDP might rise, fall, or stay the same.
E. the price level will fall, and real GDP might rise, fall, or stay the same.

Suppose a pure monopolist sells output in two different markets [A&B]. (third-degree price discrimination!). The demand curves are given as: Market A: PA = 20 - .1QA Market B: PB = 10 - .1QB where PA, QA are price and quantity in Market A; and PB, QB are price and quantity in Market B. The firm's marginal cost of production, MC=$5.00 and constant (hence, MC=AC). Fixed costs are zero.

a) Determine the profit-maximizing quantity (Q) and price (P) for each market (i.e. QA & PA; and QB & PB ).

(b) How much (total) profit (or loss) does the firm make?

c) What are the benefits of ‘second-degree’ and ‘third-deg

Indicate whether the following statement is true/false/uncertain and explain why:

1. The Heckscher-Ohlin-Samuelson theory is likely to explain the rise of the skill premium in the US and other industrialized countries in recent decades, because in the data we have observed a rise in the price of skill-intensive goods relative to unskilled labor-intensive goods over the same period.

2. In the Melitz model if the transport cost t is zero then opening up to trade does not force the least productive firms to exit the market (compared to autarky)

3. An individual worker may be better off as a result of trade in the short run, but maybe worse off in the long run.

4. The HOS theory predicts that, if countries start trading goods, the factor prices(returns to factors, for example wages) will become more similar across countries.

You are interested in estimating the average number of pizza slices a college student eats in one month. In a random sample of 30 college students, you find the average to be 18.924 slices with a sample variance of 120. What is the p-value for a two-sided hypothesis test where the null is that the true population mean is 14 slices per month?

14. Suppose the economy is in long-run equilibrium. If there is an expansion of government spending at the same time that a significant increase in immigration of skilled workers reduces production costs, then in the short-run we would expect
A. real GDP will fall and the price level might rise, fall, or stay the same.
B. real GDP will rise and the price level might rise, fall, or stay the same.
C. the price level will fall, and real GDP might rise, fall, or stay the same.
D. the price level will rise, and real GDP might rise, fall, or stay the same.
E. Either A or C will occur.
15. According to the AD/AS model, which of the following statements is (are) correct?
(x) Stagflation occurs if the economy experiences both an increase in prices and a reduction in output.
(y) Stagflation occurs if the aggregate supply curve shifts to the left because prices rise and output falls.
(z) An increase in the price level with a corresponding reduction in real GDP could be created by natural disasters such as floods, hurricanes and unusually dry weather
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

How has the office superstore market changed in the 18 years since Staples and Office Depot originally attempted to merge?

Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena’s income and the cost of other types of entertainment—in particular, how much it costs to go see a movie instead of playing golf. The three demand schedules in the table below show how many rounds of golf per year Lorena will demand at each price under three different scenarios. In scenario D₁, Lorena’s income is $60,000 per year and movies cost $11 each. In scenario D₂, Lorena’s income is also $60,000 per year, but the price of seeing a movie rises to $13. And in scenario D₃, Lorena’s income goes up to $80,000 per year, while movies cost $13.

Instructions: Round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.

a. Using the data under D₁ and D₂, calculate the cross elasticity of Lorena’s demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity of demand.)     

At $55, cross elasticity = .     

At $40, cross elasticity = .     

At $25, cross elasticity = .     

Is the cross elasticity the same at all three prices?      YesNo .     

Are movies and golf substitute goods, complementary goods, or independent goods? Independent goods Complementary goods Substitute goods .

b. Using the data under D₂ and D₃, calculate the income elasticity of Lorena’s demand for golf at all three prices. (To do this, apply the midpoints approach to the income elasticity of demand.)     

At $55, income elasticity of demand = .     

At $40, income elasticity of demand = .     

At $25, income elasticity of demand = .     

Is the income elasticity the same at all three prices? Yes No .     

Is golf an inferior good? Yes No , it is an inferior good, normal good .

The following cover letter outlines how the writing fits the criteria from the job posting and asks for an interview. This message does not employ an audience centered, professional tone. Additionally, the message contains several verb errors (tense and passive voice), number usage errors, grammatical errors, spelling errors, sentence errors (run-on, comma splices, etc.), and style errors.

Instructions: Within the body of the e-mail below, highlight the sentences that contain errors. (Click once to highlight and click again to remove highlight.)

October 5, 2011

Kinder Morgan
Jerusalem Station
Littleton, NC 27850

Dear Sir or Madam:

Re: Line Patroller Position

I hope you please consider accepting this letter an application for the line patroller position posted on the Kinder Morgan web site. The listing states that the line patroller’s primary purpose is to “perform and coordinate work group activities including patrolling, locating, and inspecting construction and inspecting excavation of company gas/liquids pipelines, appurtenances, compressor stations, process plants, and other related facilities.” I would like to elaborate on several qualities I possess in the areas of effective decision-making skills, ability to deal with pressure, planning/organizing/following-up skills, and teamwork skills that make me the perfect candidate for the Line Patroller position.

Throughout my career, I have reviewed items from simple reports to elaborate architectural drawings and have made recommendations. As an officer in the US air force, I regularly reviewed and wrote important documents and not only briefed colonels and generals but provided recommended courses of action to deal with achieving our objectives.

While employed at sunshine bank I worked closely with our architects who designed new branches and our corporate headquarters. My role was to make recommendations regarding the safety and security of the buildings for our clients, employees, and assets. I also regularly briefed the executive board of the bank to information them of my recommendations and our progress.

My proven record of success in the areas listed above will prove to be an asset for Kinder Morgan. You will find that my experience and character make me the perfect candidate to fill the line patroller position. Take the next week for consideration, and I will call to schedule the next step to becoming part of your organization.

Sincerely,
Peter E. Sampson

Explore and select one country with a developing economy. Research and discuss factors that this country must consider on increase Foreign Domestic Investments

In an open economy, GDP is $7400 billion, consumption is $4550 billion, government expenditures are $1200 billion, investment is $2400 billion, and net export is -$750 billion. What are the national savings and NCO

Suppose a computer virus disables the nation's automatic teller machines, making withdrawals from the bank accounts less convenient. As a result, people want to keep more cash on hand, increasing the demand for money.

a. Assume the Fed does not change the money supply. According to the theory of liquidity preference, what happens to the interest rate? What happens to aggregate demand?

b. If instead the Fed wants to stabilize aggregate demand, how should it change the money supply?

c. If it wants to accomplish this change in the money supply using open-market operations, what should it do?