Questions
1) Mundell – Fleming model and theory of optimum common currencies: a) Assuming perfect capital mobility...

1) Mundell – Fleming model and theory of optimum common currencies:
a) Assuming perfect capital mobility and flexible exchange rates, explain the impact on the Irish economy of a decrease in interest rates in the U.S. In your answer, clearly indicate the effect on income, rate of interest, balance of payments. (Show your answer with the help of an IS-LM-BP diagram and explain the mechanisms. Consider Ireland a small open economy with flexible exchange rates.
b) Are Monetary and Fiscal policies effective in the case of question (a)? Explain with graphs.
c) Discuss the notion of unholy trinity.

In: Economics

3) ________ is a particular problem in ________ , which contain a disproportionately large share of...

3) ________ is a particular problem in ________ , which contain a disproportionately large share of the world's wild species, but which are also under great pressure to pursue modern economic development. A. Habitat destruction; developed countries B. Habitat destruction; developing countries C. Biological uniformity; developed countries D. Biological uniformity; developing countries

In: Economics

1. A rise in the real rate of interest ________ the opportunity cost of holding an...

1. A rise in the real rate of interest ________ the opportunity cost of holding an inventory of a given size, and therefore ________ desired investment expenditure.

Select one:

a. decreases; decreases

b. decreases; leaves unaffected

c. increases; decreases

d. decreases; increases

e. increases; increases

2. If nominal national income increased by 20% over a certain period of time while real national income increased by 10%, then

Select one:

a. everybody in the economy became worse off.

b. inflation has decreased during this time period.

c. the price level has increased by approximately 10%.

d. the price level has declined by about 10%.

e. the labour force increased by 10%.

3. Suppose drought destroys many millions of acres of valuable Canadian farmland. The effect on the Canadian economy would be

Select one:

a. no change in Canada's production possibilities boundary.

b. to move its production possibilities boundary outward.

c. to move it along its production possibilities boundary.

d. to move its production possibilities boundary inward.

e. to move it beyond its production possibilities boundary.

4. Consider a simple macro-model with demand-determined output. An exogenous increase in the domestic price level will ________ the real value of the private sector's wealth, which leads to ________ in autonomous consumption and thus ________ shift in the AE function.

Select one:

a. increase; an increase; an upward

b. increase; a decrease; a downward

c. increase; an increase; a downward

d. reduce; a decrease; a downward

e. reduce; an increase; an upward

5. A farmer raises free-range chickens, which he sells to a company for $1000. That company sells the processed chickens to a grocery store for $1600, which in turn produces roasted chickens which are sold to the public for $2400. Based on this information, the value of total output is equal to

Select one:

a. $4000

b. $2400

c. $1600

d. $5000

e. $1400

In: Economics

i need a 7 min persuasive speech about the effects of pollution today

i need a 7 min persuasive speech about the effects of pollution today

In: Economics

In focus on interest rate risk, can you explain why banks offer higher interest rates on...

In focus on interest rate risk, can you explain why banks offer higher interest rates on longer term CD's than they do on short term CD's?

In: Economics

Contracting around observable characteristics to try and solve information problems are examples of A. first best...

Contracting around observable characteristics to try and solve information problems are examples of

A. first best efficient outcomes

B. second best efficient outcomes

C. positive externalities

D. negative externalities

E. creative destruction

In: Economics

Given the Demand function from Part 1: D(p) = 64 2p , The monopolist's cost is...

Given the Demand function from Part 1: D(p) = 64 2p , The monopolist's cost is equal to C(Q) = Q2 + 2Q:

PART II. Now take the same demand function as in Part I but imagine that the market has two firms instead of 1. Also assume that the marginal cost of each firm is equal to 4. Market structure is therefore characterized as a duopoly. Suppose that firms compete by choosing their output levels simultaneously.

(14) (2 points) Write down the profit expressions of Firms 1 and 2.
(15) (4 points) Derive the best-response functions of Firms 1 and 2.
(16) (3 points) Plot the best-response functions of Firms 1 and 2.
(17) (2 points) Find the output choice of each firm. Show it on the graph you drew in (17). For 18-19, first state if the statement is True or False. Then, give a brief explanation.

(18) (3 points) Oligopolies create less deadweight loss than monopolies.
(19) (3 points) Consider a duopoly where firms compete by choosing quantities one after the other. The firm which makes its output choice first, enjoys more profits as it can set a higher price.

In: Economics

1) Suppose the cost of basket is Peu = 300 euros in the Eurozone and PTurkey...

1) Suppose the cost of basket is Peu = 300 euros in the Eurozone and PTurkey =800 liras in Turkey. Suppose the home country is Turkey, and the exchange rate is 1.8 liras per euro.

a) Write the absolute purchasing power parity (PPP) equation. Check to see whether PPP holds for the lira-euro exchange rate.

b) Calculate the real exchange rate. Determine whether lira is over-valued, under-valued or neither.

c) Write two reasons for why the tendency for PPP to hold is weak in the short-run.لا

In: Economics

1. Discuss the advantages and problems associated with test marketing. ​ 2. What exactly is analyzed...

1. Discuss the advantages and problems associated with test marketing. ​
2. What exactly is analyzed during the business analysis phase of new-product development? ​
3. ​Identify and describe the three major ways to modify existing products and give an example of each.

In: Economics

Write a research about The effect of postponing consumer bank premiums for 6 months on the...

Write a research about The effect of postponing consumer bank premiums for 6 months on the Kuwaiti economy?

5-6 pages maximum

In: Economics

Explain how a decrease in productivity growth is likely to affect a country’s macroeconomic performance (detailed...

Explain how a decrease in productivity growth is likely to affect a country’s macroeconomic performance (detailed answer please)

In: Economics

Australian company Too Cool has developed two new virtual reality games based on The Hunger Games...

Australian company Too Cool has developed two new virtual reality games based on The Hunger Games and X-Men movie franchises and wants to market these offshore. Select one country and develop an international promotion strategy for the company’s entry into that country. In particular, consider the following: • Culture • the consumer behavior/buying process, • levels of economic development and • constraints such as media availability and language. In your response, consider the different promotional tools that could be used (e.g. advertising, sales promotion, direct marketing or social media) in the context of the country, product, consumer and competition.

In: Economics

Alienware and Foxconn are two multinational electronics company operating in a homogeneous computer hardware market. The...

Alienware and Foxconn are two multinational electronics company operating in a homogeneous computer hardware market. The engineering department at Alienware has been steadily working on developing a patented technology that has enabled the firm to reduce its marginal cost and emerge as a leader in the market.

The inverse demand function for the market is   P = 1200 - 6Q

Alienware's costs are TC = 60QA and Foxconn's costs are TC = 120QF.
The current output for Alienware is QA = 100 while Foxconn produces QF = 50. The current price is P = 300.

Ignoring antitrust possibilities, suppose Alienware makes an offer to Foxconn and they are in the process of negotiating a merger.

What is the potential price of the product after the merger?

In: Economics

      In view of the Coronavirus epidemy, the Bank of Canada along with most advanced nations’ central...

      In view of the Coronavirus epidemy, the Bank of Canada along with most advanced nations’ central banks has cut its policy interest rate by 1.5% to 0.25%.

  1. Explain the Bank of Canada’s intention and motive behind this policy.
  2. Employing the model of interest parity, discuss with the help of a diagram the expected impact of these interest cuts on the exchange rate (Canadian dollar).
  3. Now explain how the expected change in the Canadian dollar is hoped to affect Canada’s net exports (NX) and Canada’s GDP.

In: Economics

What role was played by quantitative easing (QE) in the U.S. after the “Great Recession”? Was...

What role was played by quantitative easing (QE) in the U.S. after the “Great Recession”? Was this QE necessary or not? (Explain in great detail with reference to economic policies)

In: Economics