Most economic policies are a two-edge sword. The overuse of a policy may cause significant side effects. The side effects of an expansionary fiscal policy include:

• A.

  government budget deficit.

• B.

  potential inflation.

• C.

  that the government may have too much influence on the market economy, and its efficiency is always of question.

• D.

  all of the above.

One year ago, the federal discount rate (a key interest rate) was 2.5%, and the current federal discount rate is 0.5%. Such adjustment aims to:

• A. encourage lending.

• B. decrease the monetary base.

• C. increase the cost for firms to borrow from the Fed.

• D. balance federal budget.

Shannon made $50,000 last year and received a $10,000 raise this year for her excellence at work. With the additional income, she spent $6,000 more this year. What is the marginal propensity to consume (MPC) for Shannon?

• A. 50%

• B. 60%

• C. 40%

• D. 70%

Suppose banks keep cash reserves as much as 5% of their deposits (currency drain ratio), and the current required reserve ratio is 10%. What is the money multiplier?

multiplier = (1 + CDR) / (RRR + CDR)

• A. 4

• B. 6

• C. 3

• D. 7

Suppose the U.S. real GDP in 2008 is $14 trillion, price level is 2, and velocity of circulation is 4. What is the quantity of money in the economy?

• A. 7 trillion

• B. 4 triliion

• C. 28 trillion

• D. 14 trillion

The Short-Run Phillips Curve shows:

• A. that monetary policy has an inverse effect on the unemployment rate and the inflation rate.

• B. monetary policy is effective in moving the real economy in the short run since it can affect the unemployment rate.

• C. There is a negative relationship between the inflation rate and the unemployment rate in the short run.

• D. all of the above.

The government expenditure multiplier refers to:

• A. that government spending leads to less consumer spending.

• B. that each additional dollar spent by the government will lead to a less than one dollar increase in GDP.

• C. that government spending has little impact on national economy.

• D. that government spending has a magnified effect on national economy.

To serve as a commodity money, an object must satisfy which of the following requirements?

• A. It has to be a commodity or token, which can be divided into small parts.

• B. It has to be generally accepted by the market participants to trade for goods and services.

• C. It has to be used as a method of settling a debt or payment.

• D. all of the above.

To serve as a commodity money, an object must satisfy which of the following requirements?

• A. It has to be a commodity or token, which can be divided up into small parts.

• B. It has to be generally accepted by the market participants to trade for anything and everything.

• C. It has to be used as a method of settling a debt or payment.

• D. All of the above.

Tom bought 6 oranges for 3 dollars. Money serves the function of:

• A. store of value.

• B. unit of account.

• C. medium of exchange.

• D. standard of deferred payment.

What is (are) the main objective(s) of fiscal policy:

• A. higher economic growth.

• B. full employment.

• C. low inflation.

• D. all of the above.

Discuss the pros and cons of Progressive Reforms. (1901-1920)
Examples, consider:
•The social purity movement
•The anti alcohol movement
•Business regulations
•Race reform and federal employment

The case Harnessing the Science of Persuasion, HBR, 2001. After carefully reading the case, reflect on and answer the following questions:

“Robert Cialdini discusses six persuasion tactics used to influence people. Pick any 3 out of these 6 tactics and find relevant examples from the marketing field. Your examples can come from advertisements, marketing communications, company practices and operations, or any other relevant company communication medium (foreign media). Discuss why your examples fit those three categories and justify your reasoning. Your answer should demonstrate you’ve done the reading and don’t forget to attach/include your examples to your essay.”

Assume that the MPC is 0.8. Assume that the total crowding-out effect is $25 billion. How will an increase in government purchases of $9 billion shift the AD curve?

Select one:

1. It will shift the AD curve right by $20 billion.

2. It will shift the AD curve left by $25 billion.

3. It will shift the AD curve right by $25 billion.

4. It will shift the AD curve left by $20 billion.

What were the factors that made high-speed growth in western Europe in the 1950s possible?

1. How does demand for the WNBA today compare to demand for the NBA today? How does demand for the WNBA today compare to what we saw in the NBA after 20 years?

What does insurance do to a CEF?

Group of answer choices

nothing

shifts it to the right

shifts it down

shifts it to the left

all of the choices are possible

Suppose when Joan is healthy, she earns $50,000 which generates utility of 100 utils.When sick, the cost of treatment is $30,000 and her utility falls to 60 utils. The probability of illness occurring is 25%. Income of $32,500 produces actual level of utility of 90. Income of $42,500 produces actual utility of 98.

i. Find Joan’s expected income and expected utility without health insurance.

ii. Would Joan buy health insurance, given the insurance policy offered sells at an actuarial fair premium (i.e., reflects only expected costs of medical care to treat illness). Explain your answer carefully.

b). One of the problems resulting from health insurance is moral hazard.

i. What is moral hazard? What are 2 different types of moral hazard? Please explain carefully.

ii. How does Nyman’s (2003) view on moral hazard differ from the conventional view of moral hazard?

iii. What are 2 examples of responses to reducing the moral hazard problem? Explain briefly.

What is

2.   MAD
3.   Hegemon
4.   Unilateralism
5.   Perpetual Peace
6.   Anarchy
7.   Populism
8.   Anti-egalitarianism
9.   Proxy wars
10.   Human perfectibilit

If you’re like some college students, you are always worried about having enough money. Suppose that you decide to become an Uber driver, and you offer rides to students on weekends. For a fee, you will drive them to parties and pick them up at the end of the night. Your marginal cost per ride is $10. To keep things simple, assume you are the only person in your town providing this service; that is, you’re a monopolist. On any given weekend, there are six customers who want a ride—three men and three women. The table below shows the most each person is willing to pay for a ride.

Part 1) If you could charge only a single price, you would earn   $------ in profit.

Part 2) Suppose you could charge men and women different prices. The tables below show each group's demand.

If you charge men one price and women another price, you would earn   $------ in profit.

Part 3 : How much profit would you earn if you practice perfect price discrimination?   $ -------

Assume Adia and Zardia can switch between producing wheat and producing beef at a constant rate:

In one hour, Andia can produce 3 Bushels of wheat and 5 pounds of beef.

In one hour Zardia can produce 4 bushels of wheat and 6 pounds of beef.

At which of the following prices would both Andia and Zardia gain from trade with each other? A - 6 bushels of wheat for 10.5 pounds of beef. B - 12 bushels of wheat for 19 pounds of beef. C - 24 bushels of wheat for 34 pounds of beef

Social Efficiency or Equity:  Which is more important economically?    

Suppose in Jack’s production function, capital and labor are perfectly substitutable such that q = K + L. Assuming, as we have all term, that the wage rate is w and r is the rental rate of capital, find Jack’s long-run total cost function representing Jacks’ total costs in terms of output, TC(q) = C(q)

Hau Lee​ Furniture, Inc., spends 45 ​% of its sales dollars in the supply chain and finds its current profit of ​$35,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to ​$40,000 so he can obtain the​ bank's approval for the loan.

Current Situation
Sales $140,000  
Cost of material $63,000 (45%)
Production cost $21,000 (15%)
Fixed cost $21,000 (15%)
Profit $35,000 (25%)
A)
What percentage improvement is needed in the supply chain strategy for profit to improve to $40,000​? What is the cost of material with a ​$40,000 ​profit?

A decrease of ..........% in material​ (supply-chain) costs is required to yield a profit of ​$40,000 for a new material cost of ............? . (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole​ number.)
B)
WHAT Percentage improvement is needed in the sales strategy for profit to improve to $40,000? what must sales be for profit to improve to $40,000?

an increase of .........% in sales is required to yield a profit of $ 40,000 , for a new level of sales of $......

Suppose you manage a local grocery store, and you learn that a very popular national grocery chain is about to open a store just a few miles away. Use the model of monopolistic competition to analyze the impact of this new store on the quantity of output your store should produce (Q) and the price your store should charge (P). What will happen to your profits? Explain your reasoning in detail. How and why do profits change? What could you do to defend your market share against the new store? (200 WORDS)