1.

a. A firm is currently in equilibrium. They use workers and capital in production. Suppose that they undergo a positive technology​ change, making workers more productive. How will this affect their choice of labor used in​ production? When will they stop making​ changes, if​ any

b. In early​ 2018, President Trump endorsed a 25​ cent-per-gallon gas tax increase. Would this tax be​ progressive, regressive, or​ proportional?

Investment is ________ related to the interest rate, while net capital outflow (NCO) is ________ related to the interest rate.

Using the information in the table shown, what is the inflation rate in 2014?

As new goods and services become available:

Many governments actively work to:

Koala Entertainment Limited (KEL) is a leading entertainment, artists and performance brokerage agency （演出經紀機構） in Australia. KEL founder Mr Wright realised that China is a world-class media and entertainment platform and wants to begin penetrating the firm’s popular musical, magic shows there, but KEL has little international experience. Mr Wright is unaware of the various types of investment and nontariff trade barriers that KEL might face in China.

Q. What can KEL management do to minimise the threat of government intervention? Explain the FOUR strategies with an example based on the above case. (~300 words)

Below are six strategies and only four is needed.

• Research to gather knowledge and intelligence. Understand trade and investment barriers abroad. Scan the business environment to identify the nature of government intervention.

• Choose the most appropriate entry strategies. Most firms choose exporting as their initial strategy, but if high tariffs are present, other strategies should be considered, such as licensing, or FDI and JVs that allow the firm to produce directly in the market.


• Take advantage of foreign trade zones. FTZs are areas where imports receive preferential tariff treatment, intended to stimulate local economic development. e.g., A successful experiment with FTZs has been the maquiladoras — export-assembly plants in northern Mexico.

• Seek favourable customs classifications for exported products. Reduce exposure to trade barriers by ensuring that products are classified properly.


• Take advantage of investment incentives and other government support programs.

• Lobby for freer trade and investment. Increasingly, nations are liberalizing markets in order to create jobs and increase tax revenues.

QUESTION 9 - 5.2

What is the supply response character for agricultural output in the short run?

QUESTION 10 - 5.2

What happens to the degree of industry concentration if existing firms merge or buy out competitors?

QUESTION 1 - 6.1

Suppose you operate a wholesale business that sells and delivers bulk coffee to office break rooms. You are the only firm that provides this service in your city, so you hold a local monopoly position in this market. If the price of gasoline declines for your delivery fleet, your marginal cost curve will shift downward. What happens to your profit maximizing level of output?

QUESTION 2 - 6.1

Which of the following statements is true?

QUESTION 7 - 6.3

I dislike using Microsoft Word and prefer to use other work processing software. However, nearly everyone that I work with uses Word, so I have to use this product when writing articles, books, and other research reports. For this reason, Microsoft Word holds a near-monopoly position in the word processor market. What is the barrier to entry that helps Microsoft maintain their market power?

QUESTION 8 - 6.3

Suppose there are 100 firms that sell athletic shoes and each has one percent of the market share. What is the HHI statistic for this market?

QUESTION 9 - 6.3

Suppose there are six firms in the breakfast cereal market. The four largest firms have 20 percent of the market share each, and the two smallest firms have 10 percent of the market share each. If one of the largest firms buys one of the smaller firms, what is the market share of the largest firm in the market after the buyout is concluded?

QUESTION 10 - 6.3

What happens to the profits of monopolistically competitive firms in the long run?

The sandwich shop is a restaurant that serves only one item, the ham sandwich. The restaurant serves two groups of customers, younger adults and senior citizens. The two segments have the following demand functions: younger adults, Q_y = 5,000 – 10P_y and senior citizens, Q_s = 10,000 – 100P_s. The restaurant has constant marginal cost of $10 and no fixed costs.

(4)a. Write the inverse demand and marginal revenue functions for each segment of the ham sandwich market.

(4)b. What are the profit maximizing price and quantity for each segment and how much profit will he earn?

(4)c. What are the price elasticities of demand for each segment at the prices and quantities you determined in part “b”

Short-answer Questions and Problems: Be thorough, clear, and show your work.

1.) In a perfectly competitive market, price is equal to marginal cost in the long run. Explain why this is not true for a monopolist or for firms in a monopolistically competitive market.

2.) Suppose Pizza Hut raises its price by 8%, and as a result, the demand for Little Caesar’s pizza goes up by 4%.

a.) What is the cross-price elasticity of demand for Pizza Hut and Little Caesar’s?

b.) Does your answer to part a indicate that these products substitutes or complements? Explain.

c.) What could Pizza Hut do to make it more likely that that they would increase their total revenue even after this price increase? (Draw only upon the material in chapters 11 and 12 for your answer.)

3.) Briefly explain one idea from microeconomics (a concept, a claim, a model, …) that you did not know before taking this course and that you found interesting or useful. Briefly explain the idea and briefly explain why you find it interesting or useful.

4.) Give an example of a Prisoner’s Dilemma situation. Clearly explain the situation, including the strategies available, the dominant strategy for each side, and the Nash equilibrium (i.e., the outcome that is most likely). Clearly explain why that outcome is most likely. Use a matrix to present your example very clearly (feel free to draw this matrix using Word or attach a picture drawn by hand). Offer two suggestions on how the participants could get out of this situation to their mutual benefit—i.e., how they could end up in the result that benefits both.

There is nothing more on this paper. What do you need more on?

The local indigenous communities will be relocated from the area the houses are built upon. The leaders of the communities object, but their combined contribution to the market economy (measured with GDP) is negligible. Using internet research discuss the weaknesses of GDP as a measure of welfare. Describe the three parts to Wight’s taxonomy of ethical action and apply it to the decision whether to go ahead with the project

How does culture affect the way people do business?

You need to make it clear what culture means to you before you start to discuss the question.

6.    Suppose an economy under fixed (pegged) exchange rates is currently facing:

1. a balanced current account (NX = 0),
   2. a negative output gap (excess unemployment), and
   3. a balanced budget.

1. Using an NX/ (S-I) model depict the above situation in relation to the internal and external balance diagrammatically.

2. Now suppose as an advisor to the government your recommendation is to employ an expenditure-changing policy to attain the Internal Balance. Explain in details what this policy is made up and what the consequences of your recommendations will be. Show diagrammatically and explain fully.

3. In light of your answer to part (b) would you agree with this statement? “A trade deficit and low savings go hand in hand.” Evaluate fully.

4. Defend this proposition “attaining the two policy objectives of internal and external balance requires two polices”. Explain and illustrate diagrammatically.

Suppose the U.S. economy was in both short-run and long-run equilibrium, until the economy experienced inflation.

a. Which policy would be consistent with the goals of monetary policy during this time?

• The Fed repos $25 billion worth of Treasury bonds to non-bank financial firms.

• The Fed reduces the discount rate from 7 percent to 5 percent.

• The Fed reduces the reserve ratio from 20 percent to 15 percent.

• The Fed sells securities worth $100 million to financial institutions.

21. The price elasticity of demand for Dell computers is estimated to currently be –3. Assuming that this estimate is correct, which of the following is true?

A. Total revenue from the sale of its computers will increase this year if Dell raises its prices this year.

B. If Dell lowers the price of its computers, the total revenue from sale of its computers will decrease this year.

C. There will be no effect on its total revenue from the sale of its computers this year if Dell lowers its prices.

D. If Dell lowers the price of its computers, the total revenue from the sale of computers will increase this year.

22. Suppose you run a movie theater and want to increase the total revenue you take in during daytime showings of movies. You can increase your revenue by

A. lowering the price of tickets if the demand for tickets is elastic.

B. lowering the price of tickets if the demand for tickets is inelastic.

C. lowering the price of tickets if the demand for tickets is unit elastic.

D. raising the price of tickets if the demand is inelastic. E. either A or D. 11

23. The long-run supply curve of new automobiles is perfectly elastic. If a 10 percent excise tax is levied on automobiles and collected from manufacturers, then in the long run, other things being equal,

A. the tax will be fully shifted to buyers of automobiles as the market equilibrium price of automobiles increases by 10 percent.

B. the tax will be borne entirely by manufacturers and the net price they receive from selling each automobile will be 10 percent less because of the tax.

C. buyers and sellers of automobiles will share the tax on each automobile.

D. it is not possible to forecast the impact of the tax on the market price of automobiles.

While answering the questions below, assume France is a small country and thus unable to influence the world price. Its demand and supply schedules for washing machines are shown in Table below.

1. Draw the graphs of demand and supply and determine the equilibrium price and quantity.
2. Suppose France imports washing machines at a world price of $100 each. How many washing machines will be produced, consumed, and imported?
3. To protect its producers from foreign competition, suppose the French government levies a specific tariff of $100 on imported washing machines.

(a) Find and show graphically the domestic price of washing machines in France, the quantity of washing machines supplied by French producers, the quantity of washing machines demanded by French consumers, and the amount of import after the tariff is imposed. Explain how the domestic price and quantities changed as compared to the no-tariff situation.

(b) Show graphically and calculate the effects of this tariff on consumers, producers, government, and on the economy as a whole.

REWORD THE TEXT TO 6TH GRADE LEVEL DO NOT USE ONLINE SOURCES PLEASE

• Obama was expected to give his keynote speech on Tuesday night 27 July. Before his presentation, some Obama advisors were worried, because it was the first time he had used a teleprompter.Obama soon went into a brief autobiographical session talking about his grand-dad made a living by working as a servant for the British, to his own dad who had got a scholarship so that he could come to the United States. Then talked about his mother's family, explaining his grandfather fighting in World War II under Patton while his grandmother was working and taking care of his mom..  

• He spoke about the simple librety enunciated in the Declaration of Independence, and he said in the 2004 election he thought was a time to reassure these values and remember that "We have more work to do." He then went on to mention several Americans he met who weren’t doing good with jobs, healthcare, and education, saying that "they don't expect the government to fix all their problems, but they hope, deep in their hearts, that with just a small change in priorities, we can ensure that every child in America has a fair shot at life and that the doors in opportunity remain open to all.In the next piece of his speech, Obama addressed John Kerry, stating his core principles and convictions on a variety of topics, interrupted by a tale of a young Marine he had met and affirmed that when military action is conducted, the families and soldiers involved must be looked after and that there is a duty to never go to war without adequate troops to win the war, secure peace and gain world respect. "Obama subsequently returned to Kerry and expressed his determination to keep America safe. Obama then discussed the notions of community and cohesion in America that individuals suffering elsewhere affects us even though we are not directly involved in it.