show what happens if Islandia opens up to international trade and finds out that the world price for textiles is lower than the domestic price.

•Draw the diagram, labelling carefully and accurately and showing quantities before and after and amount of exports or imports

•Show a table with Consumer Surplus, Producer Surplus, Total Surplus and the ∆ both before trade and after trade

•State what happens to producers and consumers in terms of being better or worse off

Due to higher prices, an inflation would increase the consumption in absolute amount, which results in higher consumption tax. What do you think about this? Do you agree?

Cindy gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 80 hours. Her utility function is: U(C, L) = C(1/3) × L(2/3).

a) Derive Cindy’s marginal rate of substitution (MRS). Suppose Cindy receives $800 each week from her grandmother––regardless of how much Cindy works. What is Cindy’s reservation wage?

b) Suppose Cindy’s wage rate is $30 per hour. Write down Cindy’s budget line (including $800 received from her grandmother). Will Cindy work? If Cindy works, how many hours does she work?   

Covid-19, without a doubt, has exposed the many inequalities and inefficiencies which exist in the United States. One of those being access to high speed internet. With nearly all educational institutions moving to remote/ distance learning and many individuals working from home, the question becomes:

1. Should internet be treated as a public utility? Explain.
2. What are the pros and cons?

Please cite all sources used to support your response.

1. In this question, you'll have to solve for price elasticity of demand using the percent change formula.

When the old price of a food package was $6.92 per package, the old quantity was 822 packages were sold each day. After the price increased to the new price $10.05 per package, sales dropped to a new quantity of 449 packages per day. Using these numbers, what is the price elasticity of demand for food packages? Round your answer to 3 decimal places.

2. In this question, you'll deal with two goods, and you'll have to solve for cross-price elasticity using the percent change formula.

2A. When the old price of a file cabinet was $1,333 per cabinet, an old quantity of 227 desks were sold. After the price decreased to a new price of $935 per file cabinet, a new quantity of 426 desks were sold. Using these numbers, what is the cross-price elasticity of file cabinets for desks? Round your answer to 3 decimal places.

2B. Based on your answer to the above question, what is the relationship between file cabinets and desks?

A. substitutes

B. complements

C. unrelated goods

Dave's income increases by 23%. As a result, his consumption of burritos increases by 31%.

3A. What is Dave's income elasticity for burritos? Round your answer to three decimal places.

3B. Consider your answer for the previous question. Dave considers burritos to be

A. a normal, necessity good

B. a normal, luxury good

C. an inferior good

D. a substitute good

E. a complement good

F. a sunk cost

4. The price of a combo meal at Lion Restaurant is $5.

When Axel had an old income of $12,000 his old demand for combo meals was Q = 200 - 4P.

When Axel had a new income of $24,000 his new demand for combo meals was Q = 560 - 4P.

What is Axel's income elasticity for combo meals at Lion Restaurant? Round your answer to 2 decimal places if necessary.

If the USA continues to increase its federal budget deficit, what effect will this have on the U.S. dollar and why? What will be the effect on the balance of trade and why? Explain.

what is the effect of transportation sector in corona virus

a) Write out the equation that describes the Quantity Theory of Money. Must indicate clearly what each variable in the equation means in order to earn full marks . Based on the equation, predict what would happen to inflation in the long run:

b). if the growth rate of the velocity of money is zero and money supply grows at a faster rate than real GDP growth rate. You may use some hypothetical numbers to illustrate your answer (1.5 marks)

c). if the growth rate of the velocity of money is zero and money supply grows at a slower rate than real GDP growth rate. Use some hypothetical numbers to show (1.5 marks) d). Based on these two scenarios (b and c) and the quantity theory of money as stated in this question, what would be a good monetary policy for the economy in the long run?

Describe the steps from the time Bank of Canada lowers the bank rate to the time real GDP and the price level will increase or decrease. In order to earn full marks, each description must fit the correct order of the steps.

Give an example of how a developed country has not provided trade preference to a developing country and therefore as far as GATT/WTO procedures are concerned shows that the developed country is not legally obligated to provide preferential treatment.

Q1: What is the difference between a democracy and a developed democracy? give examples.

Q2: Why is the UK a developed democracy? Give evidence.

Q3: Why is the origin of democracy found in both Greece and Rome, even though Rome is not technically a democracy?

Q4: Why did the UK develop democratic institutions quicker than the rest of Europe?

Q5: Why can presidential systems lead to a greater likelihood of divided government? Give an example.

Q6: Why does the way a parliamentary system is set up distance the people from the executive and make it easier to pass legislation?

Q7: Why do post-modern values and post-industrial economies pose challenges to developed democracies? Give an example of each.

Q8: Why do SMD’s tend to create a two-part system in the governments that implement them?

Q9: Why do PR systems lead to more numerous and more disciplined parties