1. In general, what are some of the tactics the government uses to correct market failures? List 3 and provide a brief explanation of the opportunity costs involved in correcting these failures.

2. Briefly discuss the key difference(s) between Keynesian Economics and Neoclassical Economics.

Emerging business scenario that might require e-business come into actions

In the early months of 2020, many sectors in Hong Kong have been hit hard by the COVID19 outbreak. Investigate how the COVID19 affects the various aspects of the economy, such as Gross Domestic Product (GDP), import and export, economic growth/economic recession, unemployment, and cost of living (inflation/deflation)?

Have the government remedial policies been able to revitalize the economy?

What appropriate policies should be taken to revitalize the economy of Hong Kong if your group were one of the policy-makers in the government leadership?

discuss about Using viral marketing strategy on Wechat

Listed below is information on production for a firm that produces wheat. They can vary the number of workers. The land they use is fixed at one acre. The Wage is $ 20, The land costs $100, The wheat sells for $ 10 per unit.

# of workers | Total product

1...............................20

2................................70

3..............................130

4..............................180

5...............................210

6................................220

7.................................222

3) With 4 workers TOTAL COST is equal to ?

4) With 6 workers TOTAL REVENUE equal to?                   

5)With 7 workers, TOTAL PROFIT is equal to ?

6) If all these workers have the same level of skill, why does worker 6 have a LARGER marginal product than worker 7 ?

7) How many workers should this firm hire to maximize its profits ?

8) If this firm does hire the number of workers you answered for question (7), they will have TOTAL PROFITS equal to ?

9) If all these workers have the same skill level, why does worker 3 have a LARGER MPL than worker 2 ?

10) What is the amount of TOTAL FIXED costs for this firm and for all firms in the SHORT run.?

Comment on whether the price war would likely to end soon. (Base on your knowledge on Cartel and take Russia and OPEC as an example)

Suppose government puts a tax on investment at rate τ. That is, you get only 1 − τ apple tree next period if you invest one apple this period. Derive the investment demand equation (analog of Equation 4.1 in Lecture 5). What would be the effect of this tax on net exports and real exchange rate in an open economy in long run and very-long run? Explain in detail by showing the changes in the relevant markets.

Suppose government put a tax on renting capital so that firms need to pay τ fraction of their capital rental expenses as a tax to government. Drive first-order conditions for capital and labor by solving firm’s maximization problem. What happens in labor, capital and financial markets in short run and long run? Explain in detail by showing the changes in the relevant markets.

i) How might a central bank use monetary financing to allow the government to run up a bigger budget deficit?

How did the Northwest Ordinance effect westward expansion of the United States?

What is the Green Revolution? Write a short essay on the history and overview of the Green Revolution.(300) words

Consider the cash people carry in their wallets. This cash is part of the M1 money supply but not part of the M2 money supply.

True

False

When the bank makes a loan to a business, where does it get the money from?

from the purchase of government bonds

the bank's required reserves

the bank's excess reserves

the deposits held at the bank

When you compare the prices of two goods, you are using money as a medium of exchange.

True

False

If banks decide to hold a larger percentage of deposits on reserve then the money multiplier will increase.

True

False