Questions
The simple case of pricing with market power assumes (a) all consumers are charged the same...

The simple case of pricing with market power assumes (a) all consumers are charged the same price, (b) the firm sells one product, (c) demand exists in one time period, and (d) competitors do not pursue pricing games. Discuss what happens as each assumption is relaxed.

In: Economics

A key dynamic within any Multi National Corporation (MNC) is management of cash and also foreign...

A key dynamic within any Multi National Corporation (MNC) is management of cash and also foreign exchange risk exposure. Cash management is critical and also heavily influenced by global dynamics. Within the Caribbean and South American jurisdiction, the economic framework is tightly connected with the major Asian economies of China and Japan, as well as the United States and the United Kingdom. The Caribbean and South American economy respectively, have been a barometer of the global economic cycle. For the South American economy, many Multi-National Corporations have made significant investments in order to achieve a reduction in the production cost of goods and also diversification benefits. Despite the benefits that could possibly materialize, some South American countries have weak banking systems and also have not been resilient through Global market shocks and Financial Crisis. This weakness may be as a result of politics and the quality of prudential supervision. Given this context, respond to the following questions which require research with respect to the localized context and also within the current market dynamics.

“For a fixed exchange rate system to work successfully, the government that oversees its operations must be able to make tight budget and monetary policies prevail”. Agree or disagree and justify your position within the context of the Caribbean and South American Economy?

In: Economics

1. Sometimes when the U. S. economy starts pulling out of a recession, the unemployment rate...

1. Sometimes when the U. S. economy starts pulling out of a recession, the unemployment rate actually rises for a time rather than immediately falling. This is commonly referred to as a "jobless recovery". There are 2 reasons for this strange phenomenon occurring. What are the 2 reasons? Explain. (Hint: Refer to the Extra PPT on Unemployment and Chapter 6 of the course text! You could also do an Internet search for "What is a jobless recovery?"!)

2. There are 3 types of unemployment in economics: frictional, structural, and cyclical. The first 2 types together constitute NATURAL UNEMPLOYMENT,, while the 3rd type is the excess unemployment above the natural unemployment (where the natural unemployment rate is believed to be at most 5% for the U. S. economy). Given this, when the economy pulls out of a recession, which type of unemployed workers would be hired first, those who are structurally unemployed or those who are cyclically unemployed? Explain why.

3. During the period 1983-1984, the inflation rate in Israel was 370% . Given this, if a dinner cost 10 shekels in an Israeli restaurant at the end of 1983, how much would that same dinner cost at the end of 1984 in Israel? Show all work and calculations and explain!

4. Between the period 1980 to 1985, policy makers in the United Kingdom worked to lower the inflation rate in the country. They were successful in their attempts. Given this, explain what happened to the unemployment rate in the United Kingdom during this period as a result of this successful policy. (Note that a lower but still positive inflation rate is known in economics as disinflation!)

In: Economics

Would you say that getting the current corona virus is an insurable or uninsurable risk? Why?...

Would you say that getting the current corona virus is an insurable or uninsurable risk? Why? If you answered uninsurable risk, which category would it fall under: Changes in the general economic environment, Changes in the structure of the economy, Changes in government policy, or New products or production methods pioneers by rivals.

In: Economics

give a brief introduction about what type of Economic system Spain's government uses and what trade...

  1. give a brief introduction about what type of Economic system Spain's government uses and what trade system is ?
  2. Briefly describe any important features of the history of Spain ( which are relevant to its current econimic situation) and why you chose it ?
  3. analyze Spain's economic system and how the government of Spain mak economic decison.

4. Analyze Spain's trade policy,2 -3 paragraphs on the countries policies towards trade, both in general, as well as their existing trade agreement and major trade partners. Include in this section both the benefits and negative effects of trade for the country.

In: Economics

The Virus has been blamed for causing much economic havoc in the world and in the...

The Virus has been blamed for causing much economic havoc in the world and in the United States. In reality, much of the damage has been cause be governments using their police power to prohibit beneficial economic activities from occurring. Assume the Virus scare is over. You are Chairperson of the Federal Reserve System. What monetary policies would you implement to get the US economy improving and growing, if any. You must explain correctly and in detail what they are and how they would work. This means going into detail about their transmission mechanisms. You may choose more than one. You have to convenience your skeptical professor that you know what you are talking about.

In: Economics

give an account of those "determinants" of demand that can shift the demand curve. (include an...

give an account of those "determinants" of demand that can shift the demand curve. (include an example)

In: Economics

In your final specification, you allow for the binary variables to interact. The results are as...

In your final specification, you allow for the binary variables to interact. The results are as follows:

Earn = 0.14 + 0.093 × Educ + 0.032 × Exper – 0.0005 × Exper2 - 0.158 × Female + 0.173 × Married – 0.218 × (Female × Married),

(0.16) (0.011) (0.006) (0.001) (0.075) (0.080) (0.097)

R2 = 0.44, SER = 0.375

A) What is the gender wage gap for married individuals?

B) What is the gender wage gap for single individuals?

In: Economics

17) According to the Mundell–Fleming model, under: A) floating exchange rates, a monetary expansion raises income...

17) According to the Mundell–Fleming model, under:
A) floating exchange rates, a monetary expansion raises income whereas a fiscal expansion does not, but under fixed exchange rates, a fiscal expansion raises income whereas a monetary expansion does not.
B) both floating and fixed exchange rates, a monetary expansion raises income, but a fiscal expansion does not.
C) both floating and fixed exchange rates, a fiscal expansion raises income, but a monetary expansion does not.
D) floating exchange rates, a fiscal expansion raises income whereas a monetary expansion does not; but under a fixed exchange rate, a monetary expansion raises income whereas a fiscal expansion does not.

18) In the IS–LM model when taxation increases, in short-run equilibrium, in the usual case, the interest rate ______ and output ______.
A) rises; falls
B) rises; rises

C) falls; rises

D) falls; falls

19) If the LM curve is vertical and government spending rises by ΔG, in the IS–LM analysis, then equilibrium income rises by:
A) ΔG/(1 – MPC).
B) more than zero but less than ΔG/(1 – MPC).

C) ΔG. D) zero.

20) If MPC = 0.75 (and there are no income taxes) when G increases by 100, then the IS curve for any given interest rate shifts to the right by:
A) 100.
B) 200.

C) 300. D) 400.

21) The increase in income in response to a fiscal expansion in the IS–LM is:

A) always less than in the Keynesian-cross model.
B) less than in the Keynesian-cross model unless the LM curve is vertical.

C) less than in the Keynesian-cross model unless the LM curve is horizontal.

D) less than in the Keynesian-cross model unless the IS curve is vertical.

In: Economics

When interest rates rise firms want to borrow less for new plants and equipment and households...

When interest rates rise firms want to borrow less for new plants and equipment and households want to borrow more for home-building.

Select one:

True

False

The sticky wage theory of the short-run aggregate supply curve says that when the price level rises more than expected, real wages fall because nominal wages are increasing at a slower rate than the price level.

Select one:

True

False

Suppose the economy is in long-run equilibrium. If there is an increase in consumer spending at the same time that a natural disaster adversely affects the availability of production inputs within the country, then in the short-run we would expect real GDP will fall and the price level might rise, fall, or stay the same.

Select one:

True

False

According to the AD/AS model, the elimination of a government mandated minimum wage that leads to a decrease in structural unemployment will cause the long-run aggregate supply curve to shift to the left.

Select one:

True

False

According to the AD/AS model, stocks and bonds are not included in aggregate demand but the purchase of new capital equipment by business is included.

Select one:

True

False

In: Economics

pick any issue or country and write about the US foreign policy you need to asses...

pick any issue or country and write about the US foreign policy

you need to asses us foreign policy towards any issue like war on terror or immigration or oil, the arab-Israeli-conflict, 600-800 words

In: Economics

1.) Fizzy Water Inc. and Bubbly Water Co. are Cournot competitors in the sparkling water industry....

1.) Fizzy Water Inc. and Bubbly Water Co. are Cournot competitors in the sparkling water industry. Let the output of each competitor be denoted by QF and QB, respectively. The demand curve for sparkling water is given by P = 422 - Q where Q = QF + QB. If each firm has a marginal cost of production equal to $56 what is the price level that will be charged in the market in equilibrium?

a.) 244 b.) 122 c.)366 d.)178

2.) You are the manager of Big Cats Real Estate which specializes in construction of luxury apartment buildings. Your marketing team informs you that the company has to choose an advertising strategy in order to compete with your largest competitor, C. Baskin Builders. You are given the following information:

If C. Baskin Builders runs an "aggressive" ad strategy and if you choose to run an "aggressive" strategy in response, your revenues will increase by $2,800,000. If you choose to run a "passive" ad strategy in response your revenues will increase by $1,900,000.

If C. Baskin Builders chooses to run a "passive" ad strategy instead, your company would see revenues increase by $3,700,000 if you ran an "aggressive" ad strategy. Your revenues would increase by $2,900,000 if you ran a "passive" strategy in response.

Which of the following is true?

A.) Big Cats Real Estate should choose a mixed strategy in advertising to maximize payoffs.

B.) Big Cats Real Estate has a dominant strategy in "aggressive" advertising.

C.) Not enough information to answer this question.

D.) Big Cats Real Estate has a dominant strategy in "passive" advertising.

Please explain

In: Economics

Which curve shifts, and in what direction, when the following events occur in the local burrito...

Which curve shifts, and in what direction, when the following events occur in the local burrito shop market?

a. College students arrive back into town for the fall semester

b. Two more Chipotle restaurants open

c. Several pizza shops open

In: Economics

Linda and Alberto consume the same product. They have the following demand curves for this product:...

Linda and Alberto consume the same product. They have the following demand curves for this product:

Q Linda = 500 – 10 P

Q Alberto = 500 – 20 P

The marginal cost (MC) for the firm is $10.

  • Calculate the prices when the firm discriminates between the two consumers. (15 points) Please explain how you got your answer.
  • Is this a good strategy, or should the firm charge the same price to both of them? (10 points) Please explain how you got your answer.

In: Economics

write a paragraph relating the coronavirus epidemic to economics 202 as much as possible. thank you!

write a paragraph relating the coronavirus epidemic to economics 202 as much as possible. thank you!

In: Economics