What affect, if any, do you think the precautionary principle will have on technological innovation and economic growth? Why? (500 words)

Suppose Nadine owns an apartment in San Francisco worth $108 and does not have earthquake insurance. Nadine’s wealth is $144, including the value of the apartment. Nadine’s utility of wealth function is U (W ) = 10W 0.5 . If an earthquake hits, Nadine’s apartment will be destroyed. The probability that an earthquake will hit is 0.5.

(a) Is Nadine risk averse?

(b) What is Nadine’s expected wealth?

(c) What is the largest amount that Nadine is willing to pay for comprehensive earthquake insurance?

(d) Suppose her neighbor Patricia also owns an apartment in the same building that is also worth $108. Patricia has the same utility of wealth function as Nadine but has total 1 wealth of $169, including the value of her apartment. Is Patricia wiling to pay the same premium that you solved for in part (c)? Without any calculations, how do you know?

(e) Draw Nadine’s utility of wealth function. Indicate her expected utility if she does not purchase earthquake insurance. Also indicate her wealth and certain utility if she pur- chases earthquake insurance at the premium you solved for in part (c).

How much do you think Schumpeterian creative destruction explains the American economic experience and why? How do biotech and digital technological innovations fit this answer?

Arguably the natural disaster will also affect the risk premium x: Briefly discuss how the risk premium might be affected and describe the implications for the short run equilibrium value of output.

Suppose that Canada is now in a recession triggered by the COVID-19 pandemic, with unemploy- ment and an output gap. We now analyze this situation using a New Keynesian sticky price model that we learned in Chapter 14. In particular, the labor market and the goods market do not have to clear in the New Keynesian model. Note: In this question, you do not need to show how the COVID-19 pandemic affects the economy, i.e., you do not need to compare the economy before and after the COVID-19 shock. Instead, you directly start from the fact that the economy is currently in a recession with unemployment.

1. (10 Points) Draw four separate figures illustrating the labor market, the goods market, the money market, and the production function. Make sure you illustrate clearly that there is unemployment in the economy, and label clearly the output gap in the figure of the goods market.

2. (10 Points) To help the economy recover from the recession, the Bank of Canada has cut the policy interest rate to 0.25%. At the same time, the government expenditure increases: The Government of Canada announced the COVID-19 Economic Response Plan will provide up to $27 billion in direct support to Canadian workers and businesses. Use the four figures to analyze how this combination of expansionary fiscal policy and expansionary monetary policy together helps the economy recover from the current recession by showing its impacts on output, employment, interest rate, wage, and money demand. (Hint: In our lecture notes we analyze the effects of fiscal policy or monetary policy separately, while in this question you are asked to illustrate the effects of these two policies that are implemented simultaneously.)

Why doesn't the Uniform Commercial Code cover patents? Please explain with a couple sentences.

Do you expect to benefit from the research efforts sponsored by the American Cancer Society? Do you contribute? If you answered “Yes,” then “No,” does this make you a free rider?

1. Which of the following quotes is a good description of the moral hazard problem?

1. Milton Friedman: “Nobody spends somebody else’s money as carefully as he spends his own. Nobody uses somebody else’s resources as carefully as he uses his own.”
2. Di Lorenzo: “Whenever government allocates resources … the more affluent in the society will always receive a disproportionate share of the benefits.”
3. Von Mises: “Motorcars, television sets and refrigerators do not make a man happy. As soon as some of his wishes are satisfied, new wishes spring up.”
4. George Orwell: “On the whole human beings want to be good, but not too good, and not quite all the time.”

2. The primary enforcement mechanism for the 1962 Kefauver-Harris Amendments to the Food, Drug and Cosmetic Act was

1. A shift in power from pharmaceutical companies to the FDA   
2. Positive inducement in the form of patent protection for FDA-approved drugs
3. A set of rules establishing standards for drug testing
4. Negative inducement in the form of fines imposed on companies who bring unsafe drugs to the market

get any written contract (from any source) and then show the following elements of this contract:

1. The names of the contracting parties.

2. The date and the place of the contract.

3. The subject of the contract.

4. The consideration.

5. The main obligations of the contracting parties.

6. Any other specific terms and conditions.

I want a presentation report  (2000-2300 words) on the topic- "Fixed exchange rates and implications for global trade".

It should include analysis and discussions. The  most important -  your point of view must be augmented.

2. which of the following statements is (are) correct?
(x) The natural rate of unemployment is the rate of unemployment that the economy tends to move to in the long run and it is not dependent on the money supply.
(y) A vertical long-run Phillips curve is consistent with the principle of monetary neutrality and it implies that the natural rate of unemployment is independent of the inflation rate.
(z) Government policy that creates structural unemployment via minimum wage laws or a change in frictional unemployment via increased unemployment benefits can alter the natural rate of unemployment.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

According to the long-run Phillips curve as described in the textbook, in the long run, unemployment depends upon factors such as
(x) the power of unions and minimum wage laws that alter the amount of structural unemployment.
(y) the nature of the job search process and the amount and duration of unemployment benefits.
(z) fiscal policy that reduces the amount of cyclical unemployment.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

Explain the external environment in which international business operates and evaluate its impact on business strategy.