Discuss how the concept of opportunity cost is related to the concept of production possibilities frontier.

COMPARE BOAT INSURANCE AND P&I (CLUB) INSURANCES (SCOPE, GENERAL CONDITIONS, etc.)?

QUESTION 13

SECTION 1
Because deflation is so costly, some have argued that setting an inflation target at 2 percent is too low and it should be set higher, to 3 percent, especially in the economic environment of 2007–2010.

1. Consider the impact of such an increase in the inflation target using the AD/AS framework in the short and long run. Begin your analysis in the long-run equilibrium.
2. How would you change your answer if expectations are rational and the FED is credible?

Discuss a specific market in which sellers have been able to establish brand loyalty through product differentiation. How are firms in this market impacted by COVID-19? Do you believe that government should focus financial assistance on business owners, families, or both during these difficult times? Explain it in between 100 to 200 words.

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7. To move to a point on the Phillips curve where inflation is lower,
A. unemployment must fall.
B. the Fed could increase the money supply.
C. the government could decrease taxes.
D. All of the above
E. None of the above are correct.

which of the following statements is (are) correct?
(x) During the early 1960s, inflation was about 1 to 3 percent in the United States, compared to about 4 to
6 percent in the late 1960s and early 1970s.
(y) In 1980, the U.S. unemployment rate was about 7 percent and inflation was above 8 percent at the
same time.
(z) In the United States, the inflation rate has been consistently below 4 percent during the period from
2000 to 2015.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

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• Think of a relevant example in your own life of how a change in the market (including information, preferences, technology, price of alternative goods, regulations, taxes, etc.) has shifted either the supply or demand of a good. How did this change affect the market equilibrium for that good or service? Explain.
• Next, find a relatively recent news article (within the past year) to support your finding (the news search feature in Google is helpful with this). If you cannot find an article specific to your example, you may find an article about another similar good or service.

Many economists during the 1960s believed the implications of the Phillips curve, which
A. indicated that low unemployment was associated with high inflation and high unemployment was
associated with low inflation.
B. offered policymakers a menu of possible economic outcomes from which to choose and the choice for
expansionary policy would lead to inflationary pressure but reduced unemployment.
C. indicated that there was upward pressure on wages and prices when unemployment was high.
D. All of the above are correct.
E. A and B, only

11. Which of the following would a student of economics expect if government policy had moved the economy
up along a given short-run Phillips curve?
A. Roscoe reads in the newspaper that the central bank had been increasing the purchase of bonds.
B. Bernadette loses her job because the factory shut down due to declining economic conditions.
C. Jasmine’s nominal wage falls because the manager, filled with jealousy, is stealing her tips.
D. Tim the “tool guy” cuts prices at his hardware store because of falling sales.
E. Both B and D

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its financial service sector

Analyze the effects of the following, on required levels of investment, both in the short run and in the long run

i. An epidemic that leads to considerable losses in the labor force.

ii. Annexation of a newly deserted city (that can be interpreted as a rise in capital stock)

iii. Improvements in anti-malware software that decreases the depreciation rate for computers

Dual mandates may be unable to avoid the time inconsistency problem. True False

Consider an economy that is subject to unexpected IS and LM shocks. Suppose Central Bank has two policy options: it will either keep the interest rate or the nominal money supply constant. For each type of shock, deduce which policy is more successful in reducing the variation in output.

A computerized machining center has been proposed for a tool-manufacturing company. The new system costs $250,000 and the company expects to borrow $100,000 at interest rate of 10% and paying for the remaining from its own funds. The loan of $100,000 is to be repaid in equal annual installments at 10% interest rate over eight years. Once the new system is installed, it will generate annual revenues of $125,000 and will require $23,500 in annual labor, $8,500 in annual material expenses, $2500 annual maintenance and another $9,000 in annual overhead (power and utility) expenses. The depreciation is based on straight line depreciation for 8 years. The company expects to phase out the facility at the end of 8 years, at which time it will be sold for $75,000. If the company’s MARR is 15% find the following: (1) The year-by-year after-tax net cash flow for the project at a 32% marginal tax rate; (2) The after-tax Net Present worth (NPW) of the project and (3) The internal rate of return