Given: When entering a highway, a driver saves 300 seconds minus 5 seconds per driver in the highway. The driver gets personal benefits = 300 - 5N and the external costs imposed on all drivers = 5N, where N is the total number of drivers.

1. What is the number of entrants that maximize net benefits for the highway? And what what is the number of entrants at the market equilibrium? (assume no cooperation or regulation, this is an example of the tragedy of the commons).

a) 45 and 90, respectively

b) 30 and 60, respectively

c) 15 and 30, respectively

d) 60 and 120, respectively

2. The Net Benefits from the highway at the optimal level of entrants equals $4500 every year, starting today. Assume the highway generates these benefits for an infinite period (forever). What is the present value of net benefits (NPV) for this highway? Assume r = 5%.

a) 90000

b) 4500

c) 9000

d) 45000

3. Now assume we start receiving these benefits ($4500/year) 10 years from now (every year, forever). What is the new NPV? Assume r still = 5%.

a) 2762.6

b) 55252.2

c) 5525.2

d) 27626.1

3. Draw and label the bond market graph covered in chapter 5. Then, using the graph, illustrate how the equilibrium price, yield to maturity, and quantity changes as a result of:

A) an increase in expected inflation. Explain the movement from one equilibrium to another.

B) A decrease in the riskiness of bonds. Explain the movement from one equilibrium to another.

C) an increase in the government budget deficit. Explain the movement from one equilibrium to another.

You are given the following information about a country's international transactions during a year: Merchandise exports $2,000 Merchandise imports 1,800 Service exports 1.500 Service imports 1,600 Income flows, net 800 Unilateral transfers, net −1,200 Increase in the country's holding of foreign assets, net (excluding official reserve assets) 3,000 Increase in foreign holdings of the country's assets, net (excluding official reserve assets) 2,200 Statistical discrepancy, net 88 Required: a) Calculate the values of the country's goods and services balance, current account balance, and official settlements balance. b) What is the value of the change in official reserve assets (net)? Is the country increasing or decreasing its net holdings of official reserve assets?

What do you think are sources of economic growth in Europe and North America? Why does convergence occur among OECD countries rather than all around the world?

How does Amazon compete against Walmart? What are their strategies and what makes them unique?

As a detective seeking evidence [need to know investor]:

Does Ford Motor have an effective leadership model (that supports the objectives) fostered and effectively deployed ?

·         What are Intellectual Property Rights?

·         Why are they important?

·         Why be concerned about IPR on a global level?

·         What can or should firms do to protect their IPR?

(a) Name three key elements that distinguish managed care from traditional FFS insurance. What was the primary change from traditional FFS insurance?

(b) Describe how incentives may di§er between traditional FFS insurance and HMOs from a dynamic perspective

During the 1920s, the U.S. government, under the guidance of Harding and Coolidge, took a backseat in issues pertaining to the economy. They believed in capitalism as the driving force behind the economy and decreased regulation by the federal government. During this period, big businesses regained a lot of power and grew exponentially, labor unions became ineffective without the support of government regulations, and consumer spending increased. While the economy looked great, warning signs pointed to problems that will eventually lead to the stock market crash and the Great Depression of the 1930s.

After analyzing the political and economic policies of Harding and Coolidge, do you believe the federal government of the 1920s could have taken a more active role in helping to regulate the economy and would this have prevented the stock market crash of 1929 and the Great Depression? Is it the government’s responsibility to be involved in the economy? Support your answer with specific examples and make sure to cite all of your sources.

Describe the three forms of Efficient Market Hypothesis and in each form, discuss the usefulness of technical analysis and fundamental analysis in portfolio choice.                                                 

, which of the following statements is (are) correct?
(x) Unemployment usually rises during the recession phase of the business cycle.
(y) Although the unemployment rate falls during an expansionary phase of the business cycle, an unemployment rate of zero is not obtainable.
(z) In 2011, the unemployment rate in the United States was above 8 percent for the entire year. Historical experience suggests that this rate is above the natural rate of unemployment, so that suggests real GDP growth was likely low during 2011.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

Which of the following statements is (are) correct?
(x) The model of aggregate demand and aggregate supply explains the relationship between real GDP and
the price level.
(y) The aggregate demand curve slopes downward because higher prices cause real wealth to increase,
interest rates to decrease, and consumption to increase.
(z) The effect of an increase in the price level is represented by a movement upward along the aggregate
demand curve and the quantity demanded decreases as a result.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

According to the wealth effect and the exchange-rate effect, an increase in the price level causes
A. the value of money holdings to decrease and net exports to decrease, respectively.
B. the value of money holdings to increase and net exports to increase, respectively.
C. the value of money holdings to decrease and net exports to increase, respectively.
D. the value of money holdings to increase and net exports to decrease, respectively.
E. None of the above

1.) Neatly draw out the ASAD model including the names of each of the curves and the labels for each axis.

2.) the graph should demonstrate a recessionary gap. 3.)Model the classical response to the gap, including a label for each new line drawn. 4.)What are the outcomes of this process?

(History of Economic Thought) Question.

1-) What were the two phases of mercantilism? Give dates for these phases. What was the focus of the economists in these phases?

2-) What are the three classes that we see in the Tableau? Define and explain each briefly.