Suppose a US investor wants to invest in the foreign exchange market by buying a foreign currency today and selling it in a year. The following information is available to him:

In dollars, how much does a big mac cost in Japan and in Mexico? Show your work.

Explain the concept of the Big Mac Index. Which currency is over-valued? Which is under-valued?

What strategies do college students employ in order to “game” their academic report cards? In light of this gaming, how can prospective employers and graduate schools determine the true academic performance of undergraduates?

Do teachers face a conflict of interest when “certifying” their students? What steps can schools and potential employers and graduate schools take to eliminate the problems created by these conflicts?

1. Suppose you have a demand function and supply function of Q_D = 300 - 2P and Q_S = 5P, respectively.

a. Suppose tax of $50 has been levied on the consumer. What is the new demand curve?

b. Draw both demand curves and the supply curve on one graph.

c. After the tax has been applied, what is the price that the sellers receive?

d. After the tax has been applied, what is the price that the consumers pay?

e. How much of the $50 tax do the sellers pay?

f. How much of the $50 tax do the consumers pay?

2. Suppose you have a demand function and supply function of Q_D = 300 - 5P and Q_S = 2P, respectively

a. Suppose tax of $50 has been levied on the consumer. What is the new demand curve?

b. Draw both demand curves and the supply curve on one graph.

c. After the tax has been applied, what is the price that the sellers receive?

d. After the tax has been applied, what is the price that the consumers pay?

e. How much of the $50 tax do the sellers pay?

f. How much of the $50 tax do the consumers pay?

Consider two mutually exclusive investment projects, each with MARR = 8% as shown in figure

A.On the basis of the IRR criterion, which alternative would be selected?

B. Determine the discounted payback period for each project.

What is critical thinking? What kind of mindset should you develop to become an effective critical thinker? Is it important to understand what an argument is to be an effective critical thinker? Why or why not? In your essay, touch on Socrates and independent thinking as well as concepts such as truth. Be sure to provide examples in your essay.

Why work?” discuss the role “life energy” plays in going to university and choosing a meaningful career.

Does the law of diminishing marginal utility hold for all goods and services we buy and consume? What are the exceptions?

Assume that there are 2 firms locating in Hotelling’s linear city of length 1. Each firm has a constant marginal cost of c. Consumers are uniformly distributed and have identical preferences represented by U=V-Pi-t(x*-xi)2 . where V-is consumer’s reservation value (consumer surplus from consuming her ideal product at zero price), Pi is the price of firm i’s product, x* is consumer’s location, 0≤x 1 and xi is firm i’s location. a) If both firms are required to locate in the middle, what price would they charge? b) If both firms are required to locate at two different ends of the city what price will they charge?

Explain why stagflation (rising prices coinciding with declining output) is difficult to reconcile with a stable FE curve.

Write an essay (not less than 500 words) on the following subject:
- The effects of the world epidemic of Corona virus on the Egyptian international
companies: the opportunities and threats.

3.

Discuss the validity of the following statement “Economic models play an important role when it comes to developing sound economic policies.”

Answer the following questions about trading strategies in efficiently inefficient markets.
(a) Discuss how active investors can be compensated for their information collection. Give examples of how you could try to collect information about specific firms and how you could trade on this.
(b) You work as an analyst at a hedge fund. Your manager suggests an investment strategy involving mergers and acquisitions (M&A). He provides anecdotes that suggest that the stock price of the target firm seems to go up once the deal is successful. He suggests a trading strategy that involves buying such firms right after the merger announcement, but before the actual merger. Should the hedge fund follow this trading strategy and, if so, what are the risks?
(c) Your manager also notes that the price of the target firm jumps right after the merger announcement. Suggest a trading strategy that might allow the hedge fund to profit from this occurence.

1.

Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. Then the consumption function is given by

2.

Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. At what level of income is saving = 0?

3.

The saving function