2. (i) First describe in general, a tariff and an import quota.
(ii) What are the primary differences between them?
(iii) Using a diagram for each, show how an increase in demand would affect such macroeconomic variables as (a) the price, (b) imports, (c) domestic production and (d) government revenue, much as we did in class. Be sure to show these effects on your two graphs.

The firm's production function as reported by the firm's production engineer is as follows:

Moreover, the accounting department reports that the wage rate is $10, the unit cost of raw material is $1, the firm needs one (1) unit of raw material for each chair and the total fixed cost is $5.

- Find how many chairs the firm must produce and sell if the selling price of a chair is $3, or $5, or $8.

- Then draw a graph of a selling price and the corresponding quantities at each price to indicate the firm's supply line.

7.EXERCISE 15.2 POSITIVE AND NEGATIVE SHOCKS

Draw a labour market diagram where the economy is at labor market equilibrium with stable prices. Now consider:

• A positive shock to aggregate demand that reduces the unemployment rate by 2 percentage points.

• A negative shock that increases it by 2 percentage points.

1.What happens to the bargaining gap in each case?

2.What would you expect to happen to the price level in each case? Explain your answers.

Suppose a firm experiences an increase in technology. All else equal, will this allow the firm to produce the same level of output at a lower cost? Explain.

The company Macy's has struggled due to global trade pressure, large debt, and online competition. How does each of these factors affect the business?

2.EXERCISE 15.7 FISCAL OR MONETARY POLICY? Think back to the discussion of the government finances in Unit 14.

a. In the event of a financial crisis, would it be preferable for the government to stabilize the economy using fiscal or monetary policy?

b. What are the dangers of using fiscal policy?

c. When might the government have no choice but to use fiscal policy?

John is an accountant and just earned your CPA. John has decided to open up John’s Tax Service on Main Street. He leases a storefront:   his office in the storefront has glass all around it. John has hired an administrative assistant who sits outside his office. His administrative assistant answers phones, receives and sends emails, sets appointments and other administrative type work. Assuming that John spends most of his time inside the office, should John pay his administrative assistant an hourly wage, piece rates or a % or profits? Explain why.

Imagine two countries are trading pomegranates. The Home country is “large” and imports pomegranates. The Foreign country exports pomegranates (the size of Foreign is not important for this question). What would happen to the equilibrium world price of pomegranates if demand for pomegranates in the Foreign country's market increases?

a.The equilibrium world price will increase

b.The equilibrium world price will decrease

c.The equilibrium world price will not change

part2

Imagine two countries are trading flower pots. The Home country is “large” and imports flower pots. The Foreign country exports flower pots (the size of Foreign is not important for this question). Because Home is large,

a.Home welfare will always increase as a result of instituting a tariff on flower pots.

b.Home will always pay a smaller fraction of a tariff they institute on flower pots, relative to the fraction Foreign pays.

c.there exists an optimal tariff that Home can institute on flower pots that will maximize their welfare.

d.Home will always pay a larger fraction of a tariff they institute on flower pots, relative to the fraction Foreign pays.

part3

Which of the following assumptions in the Ricardian model is most responsible for the laborers' wages being equal between the cheese and wine industries?

a.Labor can move costlessly between industries

b.Labor is paid their productive value

c.There are only two goods: Cheese and Wine

d.The countries have the same homothetic preferences

In a duopoly, each firm has marginal cost MC = 100, and market demand is Q = 500 - 0.5p.

Assuming average cost is the same as marginal cost.

In which oligopoly, Cournot or Stackelberg, do firms have more market power?

a. Cournot since the Lerner Index in the Cournot model is twice as much as that in the Stackelberg model.

b. Stackelberg since the Lerner Index in the Cournot model is twice as much as that in the Stackelberg model.

c. Cournot since the Lerner Index in the Cournot model is about 1.08 times as much as that in the Stackelberg model.

d. Stackelberg since the Lerner Index in the Cournot model is about 1.08 times as much as that in the Stackelberg model.

Please answer both questions

1. Ore-Ida is the one of the largest potato processors in the world. Explain why Ore-Ida buys it potatoes from farmers instead of growing potatoes itself?
2. Why would Ikea, a wood furniture and home furnishings manufacturer, buy forests and woodlands?

What is the intution in Thomas Sampsons paper from 2016 "DYNAMIC SELECTION: AN IDEA FLOWS THEORY OF
ENTRY, TRADE, AND GROWTH".

Over the last month or so, the value of stocks have fallen because of the corona virus? Which determinant(s) of aggregate demand are affected when the value of stocks fall? How has the drop in the value of stocks affected the aggregate demand curve?

Bread and Roses, Too is a fictionalized example of the widespread shift to industrialized capitalism in the United States during the late nineteenth and early-twentieth centuries. What tensions or difficulties does the book document? What were the desires and needs of workers and management? What were the shared labor concerns among workers in early twentieth-century America?