Provide rationale and research support whether the benefits of free trade outweigh the drawbacks

For Question 1-8, consider a competitive market for a good where the demand curve is determined by the demand function: P=5-Q^ D and the supply curve is determined by the supply function: P=Q^S . Where P stands for Price, Q^D is quantity demanded and Q ^S is quantity supplied.

1. What is the quantity demanded of the good when the price level is P = $1?

2. What is the quantity supplied of the good when the price level is P = $1?

3. At P=$1 there is:

a. Competitive equilibrium in the market;

b. Excess supply in the market;

c. Excess demand in the market;

d. Rationing in the market;

c. Excess demand in the market;

4. What is the equilibrium quantity level for the good in the competitive market?

5. What is the equilibrium price level for the good in the competitive market?

6. What is the consumer surplus in the competitive market?

7. What is the producer surplus in the competitive market?

8. What is the total surplus in the competitive market?

For Question 9-13, assume a market intervention of the form of price floor. The price floor is set at P=$3.5. This price floor is binding, so it has an impact on the equilibrium of the economy.

9. How many units of the good the producers are willing to supply the market at the considered market intervention?

10. How many units of the good the consumers are willing to demand the market at the considered market intervention?

11. At price $3.5 there is:

a. Competitive equilibrium in the market;

b. Excess supply in the market;

c. Excess demand in the market;

d. Rationing in the market;

12. What is the value of the Consumer Surplus considering this market intervention?

13. What is the value of the Producer Surplus considering this market intervention?

Question 4 Describe the capital asset pricing model (CAPM) and how it is used in capital budgeting decisions.

compare and contrast liberalism and realism, please. 250- 300 word

Explain why, when all adjustment have taken place, the perfectly competitive firm will operate at the minimum of its short-run and long-run average total cost curves and earn zero economic profit.

Dude Solutions employs four workers. Judy is capable of knitting 20 scarfs or 5 sweaters. Carlos can knit 8 scarfs or 8 sweaters. Mary can knit 4 scarfs or 16 sweaters. Bob can knit 40 scarfs or 20 sweaters.

1. Graph the production possibilities frontier for Dude Solutions. Place scarfs (R) on the vertical axis and sweaters (T) on the horizontal axis.
2. What is the opportunity cost of producing the first 20 sweaters? Show calculations.
3. What is the opportunity cost of producing the 37th scarf? Show calculations.
4. Suppose that Dude Solutions is currently producing 60 scarfs and 16 sweaters. What is the opportunity cost of expanding scarf production by 8 units? Explain.

1. According to official statistics in the United States, a family is considered to live in poverty if its money income:

A. is below three times an average family's minimum food budget.

B. is below the income earned by 90 percent of all Americans.

C. is below the income earned by 80 percent of all Americans.

D. and all government transfers are below three times an average family's minimum food budget.

2. The minimum food budget used to determine the poverty line was determined in the:

A. 1960s but has been recalculated every decade to account for rising standards of living.

B. 1960s and is not recalculated to account for rising standards of living.

C. 1930s but has been recalculated every decade to account for rising standards of living.

D. 1930s and is not recalculated to account for rising standards of living.

3. Today, the Gini coefficient of income inequality for the United States is about .5. In 1975, it had been about .4. What do these numbers tell us?

A. Wealth is distributed less equally than income.

B. The number of rich people has fallen.

C. Income has become more unequally distributed.

D. The official definition of poverty has changed.

4. John Rawls's views on income distribution and fairness can best be described by the statement:

A. The lesser individuals' duty should be to work for the well-being of the brightest individuals.

B. A high level of income inequality is necessary to sustain the arts, beauty, education, and civilization.

C. Society's goal should be to maximize the welfare of the least well-off, but some inequality is necessary to meet this goal.

D. Property rights should be equally distributed, and the market should determine the distribution of income.

Question 1: Show that the Cobb-Douglas Production function Y = zKαN1−α, where 0 < α < 1, satisfies all assumptions made in lecture 5.

Assumptions:

1) Output increases when either the capital stock or the number of workers increase

2) Both the marginal product of capital and the marginal product of labor are decreasing

3) The marginal product of labor increases when capital increases, and the marginal product of capital increases when labor increases

4) For any constant x > 0, F(xK,xN) = xF(K,N)

Marginal Costs. Discuss how the marginal cost declines as the marginal product of a variable input increases. Please integrate the Bible passages in your discussion.

How are the insurance premiums determined for deposit insurance? Use letters in alphabetical order to select options A The insurance premium is based on the bank’s level of riskiness and then adjusted according to the level of deposits of the overall U.S. banking system. B The insurance premium is based on the bank’s level of deposits and then adjusted according to the riskiness of the overall U.S. banking system's financial situation. C The insurance premium is based on the bank’s level of deposits and then adjusted according to the riskiness of a bank’s financial situation. D The insurance premium is based on the bank’s level of riskiness and then adjusted according to the bank’s level of deposits.

Fill in the blank with the correct answer by typing in the box. If banks are required to hold a greater amount in reserves, they have ______ money available to lend out.

When many banks are choosing to hold excess reserves, expansionary monetary policy may not work well. Use letters in alphabetical order to select options A true B false

4. Suppose that fixed cost for a firm in the automobile industry (start up costs of factories,

capital equipment, and so on) is $5 Billion and that the variable cost is $17,000 for each automobile produced. Because more firms increase competition in the market, the market price falls as more firms enter an automobile industry, or specifically, P = 17,000 + (150/n), where n represent the number of firms in the industry. Assume that the initial size of the automobile industry in the US and UK are 300 million and 533 million people respectively

a. Calculate the equilibrium number of firms in the US market and the European market in

Autarky.

b. What is the equilibrium price in each country?

c. Now suppose the US and Europe decide to trade, which adds the 533 million European demand to the US’ 300 million, how many firms will there be in Europe and the US combined? What is the new equilibrium quantity?

d. Why are prices different in the US in b and c above? Are consumers better or worse off? And why?

PLC and the Diffusion of Innovation

• Identify the stage your product is in on the Product Life Cycle (PLC).  

• Then, based on the stage your product is in on the Product Life Cycle, you will identify the consumers you will be targeting in terms of the Diffusion of Innovations.  

By using the question above, make the summary by using Nissan Almera as the brand and search Nissan Almera (PLC) and Diffusion of Innovations (300-350 words)

True/False answers for the questions below:

4. The monetary base includes the gold stock owned by the government.

5. If the Federal Reserve wanted to increase checkable deposits by $1 million and the required reserve ratio was 5%, using the simple model they would buy $50,000 of securities.

6. If the money supply is $10 million and the monetary base is $2 million, then the money multiplier must be 1/5.

7. The “rr” term in the money multiplier formula stands for “real reserves.”

8. The currency ratio is currency held by the public divided by bank reserves.

9. If the currency ratio rises, the money supply will fall.

10. If interest rates are very low, we may expect banks to hold a lot of excess reserves

Thank You!!!

What is consumer surplus?

a.It is the sum of the value consumers place on the product above the price they paid for it

b.It is the amount of income a consumer has remaining after purchasing a product

c.It is the profit margin on the product

Producer surplus is:

a.Revenue minus fixed costs

b.The area above the supply curve below the equilibrium price line

c.The area above the supply curve and beneath the demand curve to the left of the equilibrium point

The demand function for a pair of a popular new brand of athletic shoe has been estimated to be as follows:

Q_d = 500 – 2.5*Po + 1.5*Pc + .5*I + .02*A

Where Po is the own price of the pair of shoes, Pc is the price of a pair of close competitor’s shoes, I is the average income in the area measured in thousands of dollars, and A is spending on advertising measured in millions of dollars. At the current time, the new shoes are priced at $125 a pair, a pair of the competitor’s shoe is selling for $100, I = 37.5 and A = 5 .

Based on the cross price elasticity of the new shoe and its closest competitor, the 2 types of shoes are best described as:

a.unrelated

b.Substitutes

c.Complements

PROMPT:  The author offers what he claims to be a simple proposal on how regulators should think about concentrated industries: “…when members of a concentrated industry act in parallel, their conduct should be treated like that of a hypothetical monopoly.”

Explain why you believe that members of a concentrated industry should or should not be considered similar to a monopoly.

Comment on whether there is in fact a problem that needs to be resolved if firms in the same industry happen to independently reach the same decision regarding product characteristics and price.