The French Government announced that it will need to spend 8 billion Euros to repair Notre Dame cathedral. At the same time, the Filipino Government announced it was going to spend 20 million pisos to rebuild a bridge in Manila that was destroyed in a recent mudslide. Economists at the International Monetary Fund have posted data on income and consumption patterns for both France and the Philippines posted below. Based on this data:

1) What will be expected overall GDP growth in France resulting from the Notre Dame cathedral repair?

2.) What will be expected overall GDP growth in the Philippines resulting from the Manila bridge rebuilding project?

3.) Explain why the growth amounts in relation to the project sizes differs for France versus the Philippines.

French Consumption Patterns Per Disposable Income Level:

Filipino Consumption Patterns Per Disposable Income Level:

(B) Discuss the economic policies conducted by policymakers in the United States in response to the spread of COVID-19. Discuss how effective these policies are in dealing with the economic consequences of this event. Use concepts and tools from macroeconomics to support your answer.

International economics                                             Name:____________________

Balance of Payments

1.         Use the table below to answer the following questions.

a.         Classify the transactions below by putting a dollar value in the appropriate column.  Total the columns at the bottom.  The first is done as an example.

b.         Does the U.S. have a current account surplus (inflow of dollars) or deficit (outflow of dollars)?  How much?

c.         Does the U.S. financial account have a net inflow of dollars or a net outflow of dollars?  How much?

            Use the letters in the first column to answer the following questions.

d.         Which transaction(s) represent a remittance?  ________

e.         Which transaction(s) represent a direct investment?  ________

f.          Which transaction(s) represent a U.S. export of goods?  ________

g.         Which transaction(s) represent a U.S. service export?  ________

h.         Which transaction(s) represent a portfolio investment?  ________

i.          What is the total amount of dollar inflows?  __________

j.          What is the total amount of dollar outflows?  __________

York Airlines offers three classes of service on their flights between Toronto and Vancouver: economy, premium economy, and business class. Andrew, a student, is willing to pay a maximum of $300 for an economy class ticket, but is willing to pay up to $100 extra to travel in premium economy or in business class. Rebecca, a successful CEO, is willing to pay up to $500 for an economy class ticket, $800 for a premium economy ticket, and $1,000 for a business class ticket. For simplicity, suppose that York Airlines’ marginal costs are negligible (it has to pay a fixed cost to fly the airplane, but there are no marginal costs per seat sold, regardless of the class of service), so the management of the airline simply wants to maximize revenues.

(a) If the airline could perfectly price-discriminate, what class of service, and at what price, would it offer to each of the travelers? What would be the airline’s total revenues in such a case?

(b) Now suppose that the airline cannot perfectly price-discriminate; they must offer tickets in all classes of service to all customers, and tickets in a particular class of service must be sold at the same price to all customers. Suppose that the airline management decides to charge $300 for economy class tickets, $399.99 for premium economy tickets, and $1,000 for business class tickets. What kind of ticket will Andrew purchase? What kind will Rebecca purchase? What are York Airline’s total revenues?

(c) Suppose that business class tickets go on sale, and their price falls to $790. What kind of ticket will Andrew purchase? What kind will Rebecca purchase? What are York Airline’s total revenues?

(d) Suppose that the airline decides to reduce the cost of business class tickets even further, cutting the price down to $590. What kind of ticket will Andrew purchase? What kind will Rebecca purchase? Is this a good pricing strategy for the airline?

(e) Now suppose that York Airlines decides to get rid of the premium economy seats on their fleet. They maintain their $300 economy class tickets, but increase the price of business class tickets back up to $790. Is this a good strategy for the airline?

1. What is meant by the real exchange rate? What behaviors of the real exchange rate led economists to reject strong versions of PPP?

2. What is meant by a half-life? Why did Rogoff think half-lives are too long?

1. Suppose that the Danish Government wants to reduce the quantity of coconut oil consumption by 23% in order to reach their health improvement goals. How much does the tax need to be in order to meet their goals assuming a price elasticity of demand of 0.5? (Show your calculations for full points)

2. Suppose the Danish Government implements a 50% tax on coconut oil. How much will coconut oil consumption drop by if we assume a 0.5 price elasticity of demand? Will the Danish Government reach its goal of reducing coconut oil consumption by 20%? (Show your calculations for full points)

Suppose the economy is initially at a long-run equilibrium. Then the central bank increases the money supply. Assuming any resulting inflation is unexpected, explain any changes in GDP, unemployment, and inflation in the short-run that are caused by the monetary expansion. Explain your conclusions using three diagrams: (i) one for the IS-LM model, (ii) one for the AD-AS model, and (iii) one for the Phillips curve.

Explain the importance of "indexes"

How does the Federal Reserve stimulate the economy? When faced between continued stimulus to stimulate the economy and the potential inflationary pressure of rising oil prices, what can the Fed do and what do you think the Fed should do?

1) Why would a Keynesian monetarist use a contractionary monetary policy? What goals are they trying to achieve and why? (3 points)

​​​2) In the neoclassical money market (interest rates on the vertical axis) what does AS represent? (2 points)

3) In the neoclassical money market, how can AS shift to the right without shifting AD? How could this be accomplished? Why would the outcome of growth with lower interest rates be desired? (5 points)

4) Why are nominal interest rates not a good monetary target for expansionary monetary policy if inflation is expected? (3 points)

5) What is one example of a monetary aggregate that can be used as a target for long term policy? (2 points)

Post a policy-action that you believe the government should do in the next six months (in terms of fiscal or monetary policy). Just focus on one policy action, but you must provide a good logical reasoning for why you think the government should take this action.

While sipping a cup of coffee, CEO William Corke began to reminisce. It seemed like yesterday, but it was actually more than 10 years ago when he had convinced the board of directors of National Foods, Inc., to go into the soft drink business. Here he was a decade later, sampling a product that his VP of Marketing, Samantha Gordon, was telling him would be an even stronger “growth engine” for the company than bottled water. She had pointed out to him that in 2003 Caribbean consumers spent $1 billion on coffee. Although this amount was far less than the $3 billion spent annually for tea, it was five times as much as people spent on coffee a decade ago. “It’s obvious,” she told him, “National Foods must get into the coffee business.” As he poured his second cup of coffee, Bob had to admit that even he had begun to prefer coffee over tea. He decided to call Samantha into his office to discuss the matter further. “Okay, Samantha,” Bob began, “You’ve always had a good instinct for what’s new in the market. But before we leap into this, I want a report on exactly why you believe coffee will be the real spark to our company’s growth in the coming 5 years. After all, in our business it’s all about ‘share of stomach.’ If people are drinking more coffee, then they might be drinking fewer soft drinks and bottled water, so we’d be cannibalizing our own products. I’d feel much better if you could help me understand why this wouldn’t be the case. Furthermore, what are the key determinants of the demand for coffee? Could this be just a fad? Already people are starting to tire of their low-carb diets.

Required

a. Based on the scenario, prepare a response to the CEO describing how five key demand determinants that could affect the demand for coffee.

b. Based on your response to question 1 above, write the expression for the following for coffee: a. Demand function ( 5 marks) b. Demand curve

c. How might people respond to changes in the price of competing products such as bottled water and carbonated soft drinks?

d. Explain the factors that would determine if coffee is a ‘luxury’ good, or a necessity.

Is Singapore doing enough to stop the exploitation of migrant workers?

- If yes, explain what has been effective in addressing the mistreatment of migrant workers.

- If not, explain what is needed to prevent migrant workers from being mistreated in the labour market.

The main objectives of this discussion topic are the following:

To provide clear definition for Pure Competitive Markets or Perfectly Competitive Markets

To provide a clear set of characteristics of Purely Competitive Markets

To assess the theoretical and policy relevance of Purely Competitive markets to the real world (in other words evaluate why Purely Competitive Markets are still being taught in Principles of Microeconomics),

To provide clear definition for Non-Competitive Markets or Imperfectly Competitive Markets (example, Monopoly, Monopolistic, Oligopoly, Bilateral Monopoly etc)

To provide a clear set of characteristics of Non-Competitive or Imperfectly Markets

Also critically assess the theoretical and policy relevance of the different types of non-competitive markets in the real world

To comment on the Economics of Labor Markets -Are there purely competitive labor markets, Bilateral Monopoly labor markets, Monopolist labor markets etc?