1. What was the Embargo Act of 1807? Why do you think President Jefferson and others thought it was necessary to sign this act into law?

2. What similarities between the Embargo Act and the current economic tension between the U.S. and China do you see? How do they differ?

3. What lessons can we take from the failed Embargo Act as the threat of a trade war looms near?

Question (1)

The nation of Textilia does not allow imports of clothing. In its equilibrium without trade, a T-shirt costs $20, and the equilibrium quantity is 3 million T-shirts. One day, after reading Adam Smith’s The Wealth of Nations while on vacation, the president decides to open the Textilian market to international trade. The market price of a T-shirt falls to the world price of $16. The number of T-shirts consumed in Textilia rises to 4 million, while the number of T-shirts produced declines to 1 million.

1. Illustrate the situation just described in a graph. Your graph should show all the numbers.
2. Calculate the change in consumer surplus, producer surplus, and total surplus that results from opening up trade.

             (Hint: Recall that the area of a triangle is 0.5 × base ×height.)

Assume that the market of medical supplies is in perfect competition.

In early April, Trump administration proposed export bans on medical supplies. Suppose America is large economy and large exporter of medical goods.

Analyze the impact of the export bans on comsumer surplus, producer surplus, government revenue, and national welfare in the US. Use a graph to assist your analysis.

Is Ford Motor effective at developing and manging external partnerships? [As a need to know investor: Please have 200 words or more][Will give thumbs up]

Does Ford Motor employ sophisticated forecasting methods and monitor their performance? [As a need to know investor: Please have 200 words or more][Will give thumbs up]

How is an iPhone XS Max both a good and service? Write two paragraphs explaining how.

ETHICAL INQUIRY OF outsourcing in the United States?

Are Ford Motor JIT practice effectively developed? [As a need to know investor: Please have 200 words or more][Will give thumbs up]

1. An article entitled “The Income Elasticity of Health Care Spending in Developing and Developed Countries” by Farag et al, 2012 finds the following results (from Table 2 of the paper on page 153):

The authors ran two separate models. The first only controls for a country’s income (measured by gross domestic product). The other adds in country-specific attributes. All of the results are significant as indicated by ***. Answer the following questions: (30 points)

1. Are health care commodities normal goods? y/n
2. Would you say health care services as it relates to income is elastic based on Model 1? y/n
3. Once we control for indicators of how developed the country is (including any unobservable differences across countries by controlling for fixed effects) the income effect goes down. In other words, by controlling for more factors that explain health care spending, and are also related to GDP (which measures the country’s income), we come closer to the isolated effect of income. This provides support for which of the following economic concepts used repeatedly in our modeling?
   1. Complements
   2. Elasticities
   3. Ceterus parabus
   4. Consumer sovereignty

4. Would you classify health care as a necessity, or a luxury based on the income elasticity in Model 2 (the preferred model)?

In a perfectly competitive market for cases of plastic water bottles, market demand is given by PD = 30−QD and market supply is given by PS = 10+ 14QS (where QD and QS are the quantities of cases bought and sold, respectively).

(a) (2 points) What is the quantity of cases bought and sold in competitive equilibrium?

(b) (2 points) What is the price in competitive equilibrium?

(c) (2 points) Suppose that the government imposes a tax of $10 per case of plastic water bottles. How many cases are bought and sold after the tax?

(d) (2 points) What is the deadweight loss associated with the tax in part (c)?

1.Consider the monetary intertemporal model as discussed in the course. There is no inflation. Suppose that the price of oil, an important input in production, doubles. Now suppose that nominal wages are sticky. Initially, the economy is at full employment.

a) Derive the effect of the oil price shock in the Keynesian framework.

b) What should the central bank do if its objective is to stabilize prices and what should it do if its objective is to speed up the adjustment of employment to its long run level?

(Note to expert: Please answer both a and b as they are both part of the same question, thanks!)

1. To produce ice cream cones, Marcus requires capital K and labour L. Neither by itself produces good ice cream cones. Suppose that the production technology can be captured by the production function q=20L^0.5K^0.5, where q is number of traps, MP_L = 10L^-0.5K^0.5, and MP_K =10 L^0.5K^-0.5.
   1. What can you say about the returns to scale for this production function?
   2. What is the equation of the isoquants?
   3. What is the equation for a slope of an isoquant? What is this called? What does it indicate?
   4. Set up the cost minimization problem and solve for the conditional capital and labour demands as functions of w (the labour costs), r (the capital costs), and q (number of ice cream cones).
   5. What is the equation of the expansion path? Discuss your findings.
   6. Discuss the demand functions you derived in d). Are production inputs the normal inputs? What happens to optimal amount labour as w increases? What happens to optimal amount of capital as r decreases?
   7. Now, assume that the cost of the labour is $10 while cost of capital is $40. What is your “optimal production plan”?
   8. Derive the cost function and simplify the function as much as you can.
   9. What is your “optimal production plan” if you wish to produce 100 ice cream cones?
   10. What is the cost of producing 100 ice cream cones?

Now suppose your investor fixes capital to 10 units in short run.

11. What is your “optimal production plan” with fixed capital if you wish to produce 100 ice cream cones?
    12. What is the short-run cost function?

Imperfect information is pretty common. Many people who got caught up in variable interest mortgages claimed not to know the interest rates would go up after a few years. Many people have been defrauded in Ponzi schemes. Not too long ago a poor elderly lady was discovered to still be paying $3.00 a month to rent her phone from AT&T, something that was done way back in the 70s and before, when you could not own your own telephone. One recent scam that has surfaced are people calling to help unknowing suspects to sign up for Obama Care and getting payments, which is stolen money. Another is people calling and claiming the person missed jury duty and demanding money to pay off a fine. Do you know anyone that has been defrauded or suffered simply because they did not know what they were doing? Discuss.

Assume you have the utility function U( X; Y ) = XY: You have 20 liras to spend. Price of good X is a lira per unit and price of good Y is a lira per unit. Given this information, you can solve for optimal consumption bundle and conclude that consuming 10 units of X and 10 units of Y maximizes your utility. Now assume that price of X increases to 2 liras. Price of good Y is constant and your income is still 20 liras. Now,the new optimal consumption bundle is 10 units of Y and 5 units of X. We observe that good X consumption declines from 10 to 5. This is what we call as total e§ect. Decompose the decline in X consumption into income e§ect and substitution e§ect. Decompose numerically. Explain your answer using a graph as well. (I want you to be able to say for example " the decline in X consumption is 5 units. 2 units is due to substitution e§ect and 3 units is due to income e§ect )

How could I answer the following discussion question? Thanks!

Higher education has become increasingly expensive and hence education now costs much more than it did before. One of the ways the government controls prices is by setting a floor or a ceiling on the market.

Explain what might happen in the market for higher education if the government placed a price ceiling on the cost of one undergraduate credit hour. Explain your answers using economic theory on impacts of price ceiling on market equilibrium.

1. What are the impacts of pricing ceiling market equilibrium in education market?
2. Does it matter whether or not the ceiling is set above or below the equilibrium price?
3. Who might benefit from this price restriction? Who might be harmed from this price restriction?