6. Suppose that the following information is given (Yd is disposable income):

C= 100 + (.75)(Y-T) G= 250

I= 150 t= 20% M= .15Yd

a) What would be the effect on output of a $50 increase in government spending? Show your work.

b) What if the marginal propensity to import was to increase. What would be the effect on output? Describe why it would affect economic activity.

c) What would be the effect on the equilibrium level of output if the tax rate were to increase? Explain and draw a graph of the goods market.

I need to know about specific monetary policies in place in the beginning of the 1980s. The instructor told us to remember that the Federal Reserve controls our monetary policy and they have a four main goals: 1. Price Stability 2. High Employment 3. Economic Growth 4. Financial Market Stability. So I need to know specific monetary policies used in that time period and what the goals were of those policies. (I need at least two policies). I already know that the main tools the Fed uses are the decreasing or increasing of the money supply (through open market operations, changing the required-reserve ratio, and changing the discount rate) and changes to interest rates. This is for a macroeconomics class if that helps.

What is the difference between economic growth and economic development? Please explain with detail and examples

6.

a. The market for coats is perfectly competitive with market supply given by QS= 2500 + 40P and market demand given by QD given by QD= 7500 – 10P. Solve for the equilibrium values of price and quantity. Calculate the values of elasticity of demand and elasticity of supply at the equilibrium.

b. With reference to question 6a, the government imposes a tax of 20% on coats. Calculate the new equilibrium prices and quantity and explain how the burden of the tax is shared between consumers and producers. How much tax revenue is collected?

c. With reference to your answer for part b, suppose that the government had imposed on the producers a license fee (a one time fixed payment) that generated the same revenue for the government as did the tax. What is the new equilibrium value of price and quantity. Explain the difference between the two answers.

ECO 202 Microeconomics

Question 1. Provide solutions for the following:

a) Discuss the differences between a policy protecting competition and policy protecting competitors.

b) Explain the concept of optimal pollution. Why might an ardent environmentalist and an economist have different views as to where "optimal" was?

c) Wind power is subsidized by the government with tax subsidies and purchase mandates. Explain how externalities theory might justify such subsidies. Is the wind subsidy an example of crony capitalism? Why or why not?

d) In what ways are unions similar and/or different from monopolists?

Consider an industry comprised of a dominant firm with a competitive fringe. Each firm produces a homogenous good. Market demand is given by Q=a-bp. The dominant firm has a constant marginal cost c. There are three competitive fringe firms; each competitive fringe firm i faces a marginal cost of c+qi, where is qi is the output of firm i.

a.) What is the dominant firm’s residual demand curve?

b.) What is the output and profit level of each firm?

c.) Suppose the dominant firm merges with one of the competitive fringe firms. What is the output and profit level of the dominant firm after the merger? Do two firms have an incentive to merge?

Suppose that the market for DVD rentals is perfectly competitive and operates at the industry's long-run equilibrium. At this point, Amazon and Hulu expand their online streaming services. Describe the long-run adjustment observed in the DVD rental industry, step by step. Explain the economic intuition for each change you describe and illustrate it with a graph.

Based on the film "Inequality For All---How has rising inequality in the U.S. been detrimental to the economy? What are the social consequences of inequality? In what ways is inequality linked to democracy in our country? What, if anything, can be done to mitigate the negative impacts of inequality?

The power of the U.S. president has evolved since the great depression. Develop an argument to explain whether this evolving power has made the presidency a dangerous office.

Defensible thesis statement.

Suppose that a firm has the p production function f(x1; x2) = sqrt(x1) + x2^2.

(a) The marginal product of factor 1 (increases, decreases, stays constant) ------------ as the amount of factor 1 increases. The marginal product of factor 2 (increases, decreases, stays constant) ----------- as the amount of factor 2 increases.

(b) This production function does not satisfy the definition of increasing returns to scale, constant returns to scale, or decreasing returns to scale. How can this be?

(c)Find a combination of inputs such that doubling the amount of both inputs will more than double the amount of output.
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The demand function for football tickets for a typical game at a large midwestern university is D(p) = 200, 000 -10, 000p. The university's football stadium holds a maximum of 100,000 spectators. On a clearly labelled graph, draw the inverse demand function and the marginal revenue function.

3. The UCC governs sales contracts, or contracts for the sale of goods. How does the UCC define a sale? Describe what goods are, who is a merchant, and how these fall into the context of a legal sale of product.

Develop an argument that explains whether the federal bureaucracy operates with sufficient checks and balances or whether it has too much discretionary authority to be a fully democratic element of government.

Defensible thesis statement/

Once consequence of income inequality is that high income individuals might engage in rent-seeking behavior. What is rent-seeking behavior and why is it bad for an economy?

One of the principle criticisms of the Malthusian model is that it fails to include a role for prices.   Provide a complete explanation as to why flexible prices serve to negate the predictions of the Malthusian model.