Government spending unnecessarily affects us all as taxpayers. Do you agree? why?

Explain why the firm in an monopolistic competition does not produce where marginal cost crosses demand (that is where a competitive firm would be located) but rather further up demand onto the elastic segment of the demand curve. Note again that the ability of a firm to raise price above the competitive price is termed "Market Power."

Let the IS and LM relations be given as in class but suppose that investment is now increasing in the interest rate i; that is, when i increases, I(Y,i) increases. All other functions and relations remain the same.

1. (a) Graphically derive the IS curve using a Keynesian cross; explain why, given the unusual assumption for investment, it is upward sloping.

2. (b) Draw an arbitrary LM curve (based on standard assumptions about the financial market) along with your IS curve from (a). Make your LM curve flatter than your IS curve. Suppose the government increases G. Show the impact this has on Y and i in the short run equilibrium.

Write a short essay based on current states of the US economy. Use one paragraph describing Fed's action, use one paragraph describing fiscal policy, and use at least one additional paragraph commenting on the potential effects of these policies using AS/AD framework

On what grounds have Marxists predicted the inevitable collapse of capitalism? In your answer, use concepts of “historical materialism”, “economic class”, “alienation” and “proletarian revolution”

2. The cane industry is composed of a large number of identical rms. Each rm faces the following short-run total cost (SRTC) function: SRTC = 10 + 20q + 0.5q² where q is the output canes per day. (a) Find the short-run supply curve for each cane maker. (b) If the price of a cane is 30 TL, will the rm make a loss, a prot, or neither? At this price, calculate the output, average cost, marginal revenue, and prot/loss of the rm, and show on a properly-labeled graph.

which of the following explains why syndicate units charge higher prices and make higher sales than franchised units?

a. government regulation

b. different chains operating in markets in different characteristics

c. syndication deal is the most suitable way to operate business

d. some chains may have lower quality than others

e. any of these reasons

• What can cause a financial panic?

• What would be the benefits and costs of using the Federal Reserve as a "lender of last resort"?

A bank has issued a one- year certificate of deposit for $50 million at an interest rate of 2 percent. With the proceeds, the bank has purchased a two- year Treasury note that pays 4 percent interest. a) What is the Bank's asset? b) What is the Bank's liability? c) What risk does the bank face in entering into these transactions? d) What would happen if all interest rates were to rise by 1 percent? Will the bank earn or lose money?

List the six economic functions of the United States Government and explain each using a brief statement.

3 If a researcher is using data that are low in cost and save time, which type of data is this likely to be?

Short Answer. Be thorough and clear in your answers. There are two parts A and B, so please identify your answers with an A and B.

Suppose that during this current coronavirus-caused recession with high unemployment rates and lower incomes, consumers choose to buy more generic food products and fewer brand name food products. (Assume the prices of the generic and brand name products did not change during this time).

A. Explain which good (generic or brand-name) is inferior and which good is normal.  Be sure to fully explain how you determined this answer (hint: definitions of these are in Ch. 4).

B.  Identify which elasticity measurement would be used to determine inferior and normal goods. Explain the formula and state what result you would expect for the brand name and the generic good, given your answer to part A. (i.e. positive number or negative number). [Hint: the more detailed (and correct) the answer, the better.]