A community that is located in a resort area is trying to decide on the parking fee to charge at the town-owned beach. There are other beaches in the area, and there is competition for bathers among the different beaches. The town has determined the following function, which expresses the average number of cars per day q as a function of the parking fee p stated in dollars.
     q = 6000 - 1200p

a) Determine the fee that should be charged to maximize daily beach revenues. $  Blank 1. Fill in the blank,

b) What is the maximum daily beach revenue expected to be? $  Blank 2. Fill in the blank

c) How many cars are expected on an average day?  Blank 3. Fill in the blank, cars

List the properties of indifference curves and explain the intuition behind each property (that is, why must the indifference curve obey this property)?

Suppose your marginal utility for meals at the campus cafeteria this week has fallen to zero. Explain what has happened to your total utility curve derived from consuming these meals. Now explain what will happen to total utility if you eat more meals at the cafeteria this week. Why?

(1) increase the wealth of people holding a fixed quantity of money

(2)reduce the real rate of interest

(3)make domestically produced goods cheaper than those produced abroad

Explain WHY each of the factors that our authors list as those that affect Aggregate Demand and Short Run Aggregate Supply, and Long Run Aggregate Supply can cause those curves to shift.

1. The following table looks at the maximum amount of Televisions and Machines that China and Japan can produce. Assume that the trade-off between Televisions and Machine production in China and Japan is always the same.

1. Draw a production possibilities curve for China and Japan. (Assume that China and Japan produce nothing else except machines and televisions.
2. What is the opportunity cost of producing one more machine in China? In Japan?
3. Identify which country has the comparative advantage in machine production and which country has the comparative advantage in television production.
4. Show how China would benefit from trading with Japan.
5. Show how Japan would benefit from trading with China.

According to the wealth effect and the exchange-rate effect, a decrease in the price level causes the value of money holdings to decrease and net exports to decrease, respectively.

Select one:

True

False

The short-run aggregate supply curve (SRAS) is upward sloping due to the stickiness of wages and other input prices because contracts fix some input prices and firms are unable to change the input prices they face as output prices are changing.

Select one:

True

False

Suppose the economy is in long-run equilibrium. If there is a reduction of government spending at the same time that a civil war reduces the availability of resources, then, in the short-run we would expect real GDP will fall.

Select one:

True

False

An increase in the price of a major input would cause production costs to rise and the short-run aggregate supply curve would shift to the right.

Select one:

True

False

If state governments decide to build more education facilities and highways, then the AD curve will shift to the right but an increase in Social Security payments by the federal government will cause the AD curve to shift to the left.

Select one:

True

False

What factors could a competent Nigerian government use to foster a greater sense of shared national identity among the people?

What are the factors that tend to divide Nigerian society and cause Nigerians to be, in the words of Nigerian novelist and political activist Chinua Achebe, “among the world’s most unpatriotic people”?

15.3

a. Nina starts with wealth of $120,000, earns no additional income, and faces a zero interest rate. How much does she consume in each of three periods if she has the following utility function: U = ln(C₁) + ln(C₂) + ln(C₃)

b. David starts with wealth of $120,000, earns no additional income, and faces a zero interest rate. How much does she consume in each of three periods if he has the following utility function: U = 2 ln(C₁) + ln(C₂) + ln(C₃)

Hint: For both a. and b. Equate the slope of the budget constraint, 1+r, to the slope of the utility function, the marginal rate of substitution between consumption in any two periods i.e. the ratio of marginal utilities. Note marginal utility is the first derivative of total utility.

1. Conduct a Benefits-Cost Analysis on the following Highway Project using:

Initial Costs of Tunnel. = $5,000,000
Annual costs for operating/maintenance = 150,000

Annual savings and benefits to travelers = 250,000

Residual value of benefits after horizon = 350,000

Useful life of investment = 30 years
Interest Rate = 6%

a. Find B-C Ratio of Annual Worth

b.Find B-C Ratio of Future Worth

c.Find B-C Ratio of Present Worth

42. Assume the required reserve ratio is 20 percent and the FOMC orders an open-market purchase of $100 million in government securities from member banks. If the oversimplified money multiplier is assumed, then the money supply will

43. In the mid-1990s, real interest rates fell in the United States. This was the result of budget deficit

48. An expansionary monetary policy will

49. The Fed has which of the following as its strongest control over the money supply?

It is said of Gary Cohn, former chair of Goldman Sachs and advisor to the Trump presidency, that while “[p]inning blame for the world’s financial crisis of 2008 on one man or one bank would not be fair, . . . Gary Cohn and his entourage at Goldman Sachs is a good place to start.” At Goldman Sachs, Cohn aggressively promoted subprime mortgages and other dubious financial instruments. Knowing that these financial instruments were likely to fail, he and his cronies walked away with hundreds of millions of dollars in bonus money and stock options. His behavior cost his company billions and the world economy trillions of dollars in value, and earned him a place in Donald Trump's inner circle.

Of course, Cohn was only one of many crooks to walk away rich from the financial crisis of 2008.

1. Why was Cohn able to operate his fraud for so long? Why did people continue to trust him with their money right up until his frauds were exposed?

2. What happens to financial markets where insiders get a reputation for corruption? Will people continue to invest?

Question One The economic advisors to an economy estimate the supply and demand curves for cigarettes as the following:

Qd=140,000-25,000P

Qs=20,000+75,000P

, where Q is the daily sales in packs of cigarettes, and P is the price per pack.

1. Calculate the consumer surplus and producer surplus of this economy at the market clearing condition;

b. Calculate the price elasticities of demand and supply in this economy. Interpret your findings.

Discuss how the economy can have inflation from the demand side and from the supply side. Discuss the purpose of the Phillips curve and the shape of the Phillips curve in the long-run.

1. The following macroeconomic projected return models

π = inflation and GDP = GDP growth

RBAH=9.2+0.2Fπ+ 0.8FGDP+ϵ

RFIVN=11.6-0.6Fπ+ 1.8 FGDP+ϵ

RSP500=8.8-1.2 Fπ+ 1.6 FGDP+ϵ

1. Expected inflation is 2.3% and actual inflation may be greater by 0.4%, calculate the impact on the S&P500 projected return ( How would the projected return change)
2. Create a portfolio invested in Boaz Allan (BAH) and Five9 (FIVN) with the same exposure to GDP as the S&P500.
3. Create a portfolio invested in Boaz Allan (BAH) and Five9 (FIVN) to diversify away exposure to inflation.

2. Given the following information

             Corr (Bah,FIVN) = 0.4

Does an arbitrage opportunity exist?

Please include work

This is all the information provided for the question.