Consider an individual making choices over two goods, x and y with prices px and py, with income I , and the utility function u(x,y) = xy1/2.You already know that this yields the demand functions x∗ = 2I 3px and y∗ = I 3py (no need to calculate).
(a) Find the indirect utility function, expenditure function and the compensated (Hicksian) demands for x and y. Show your work.
(b) Use your expenditure function to find the compensating variation for a price increase from $2 to $3 for good x, given income I = 60, and py = 1.
(c) Use your answer from part (a) to determine which of these options is best for this consumer: (i) px = 1, py = 3, I = 100; (ii) px = 2, py = 2, I = 90;(iii) px = 3, py = 1, I = 120; (iv) px = 2, py = 1, I = 110.
1

Describe an alternative pricing mechanism that exists within the healthcare industry or by a specific healthcare firm that deviates from the traditional market equilibrium pricing process (i.e. price discrimination, price leadership models, cost-plus pricing, incremental pricing, multiproduct pricing, transfer pricing, price skimming, prestige pricing, penetration pricing, predatory pricing, prestige pricing or psychological pricing). What type of market conditions exist that allows the unorthodox pricing procedure to exist?

Some factory equipment was bought at a cost of $100,000. The O&M costs for the first year were $10,000 and they are expected to increase by $2,500 per year thereafter. The market value of the equipment declines by 15% per year over its 5-year life. What is the minimum cost life for this equipment? Assume MARR = 4%.

Group of answer choices

5 years

3 years

2 years

4 years

Give an example of a policy used to correct an economic fluctuation. Also, explain the impact of the policy.

A permanent scholarship fund is started through a donation of $75,000 today and 50,000 four years from now. If scholarships totalling $20,000 are awarded each year beginning seven years from now, the rate of return for the invested money is nearest to:

Group of answer choices

8%

12%

10%

6%

Give a detailed explanation about what is happening with the oil prices.

mention coronavirus, OPEC, Saudi Arabia.

give references

Assume that a labour strike ends and that the union is successful in negotiating a substantial raise in pay for its workers. Concerns are raised about the motivation of the union and the possible negative employment consequences of the expensive labour contract.

1. Discuss the various possible objectives for the union.

2. The opponents of unions typically cite the labour demand theory to support their claim that the union is destroying jobs.  Explain their argument. Present a graph.

3. Supporters of unions believe that the union does not destroy jobs when they bargain for higher wages.  Analyze their proposition. Include a diagram.

1 How internet came into existence??

2 Why internet replaced media??

2.b it is a good thing?

Describe some ways that the SARS-CoV-2 (Covid-19) pandemic will affect the following aspects of trade between the US and China over the next 5 years.

(a) The volume of trade?

(b) The pattern of trade, i.e., what each country exports to the other?

(c) The US trade deficit with China?

Explain, using an appropriate graph, why a tariff is an inefficient means to collect government revenue.

The Chineses economy and Chinese corporate culture, and of two examples of international FDI investment into China

Describe the Dispute Settlement Procedure of the World Trade Organization (WTO).

Explain how its collapse could lead to a collapse of the WTO?

1. Consider a firm with the following production function: Q = KL^1/2

(a) Consider an output level of Q = 100. Find the expression of the isoquant for this output level.

(b) Find the marginal product of labor, MPL. Is it increasing, decreasing, or constant in the units of labor, L, that the firm uses?

(c) Find the marginal product of capital, MPK. Is it increasing, decreasing, or constant in the units of capital, K, that the firm uses?

(d) Use your result in parts (b)-(c) to find the marginal rate of technical substitution, MRTS, for this firm.

(e) Is the MRTS increasing or decreasing in the units of labor, L? What does that imply about the shape of the isoquant?

(f) Given your result in part (d), what can you say about the firm’s ability to substitute one input for another? (g) Assume now that the firm were to increase all inputs by a common factor > 0. What happens to the output that the firm produces? [Hint: check whether the firm’s production function exhibits increasing, decreasing, or constant returns to scale.]

For the money demand function, we assumed that money demand depends on income and interest rate. Consider an economy where money demand does not depend on income and is only a function of interest rate.

M^d = L(i)

Suppose that the economy is open and on a flexible exchange rate:

(a) Draw the money demand and supply curves with money demand and supply on x-axis and interest rate on y-axis.

(b) Show what happens to money demand and supply curves if income changes.

(c) Derive the LM curve.

(d) Derive the AD curve.