1. Suppose you have been hired by a research firm trying to understand the market for Widgets (a hypothetical product). Your analysis of the data indicates that the Demand curve for Widgets is estimated to be linear and given by equation Qd = 100 – 2P and the Supply curve for Widgets appears to be linear as well and is estimated as Qs = 2P – 20.

• Graphically draw these two curves, labeling all relevant points (such as intercepts for each line) on the horizontal and vertical axes.
• Given that Demand is Qd = 100 – 2P and Supply is Qs = 2P – 20, your next assignment is to compute the equilibrium Price and Quantity in the market for Widgets. Indicate these values on the graph.
• The firm that hired you has estimated that improvements in Widget quality tastes will cause the Demand curve to change to Qd = 140 – 2P.   If the Supply curve remains the same (Qs = 2P – 20), graphically draw these two curves, labeling all relevant points on the horizontal and vertical axes.
• Given that New Demand is Qd = 140 – 2P and Supply is Qs = 2P – 20, your next assignment is to compute the new equilibrium Price and Quantity in the market for Widgets. Indicate these values on the graph.

• How does income distribution effect consumption in the U.S.? Which income group would have the highest marginal propensity to consume? Should something be done to make income distribution more equal? Should there be a living wage? Do you agree or disagree with Professor Reich's view on income inequality? How would a more equitable income distribution affect aggregate demand?

Economist Steven Landsburg argues that if one believes in the death penalty for murderers because of its deterrent effect, using cost/benefit analysis we should execute computer hackers - the creators of worms and viruses - because the deterrent effect in cost saving would be greater than the deterrent effect in saving lives. Estimates are that each execution deters eight murders, which, if one valued each life at about $7 million, saves about $56 million; he estimates that executing hackers would save more than that per execution, and thus would be the economic thing to do.

1. Do you agree or disagree with Landsburg's argument? Why?
2. Can you extend cost/benefit analysis to other areas?

A) What is quantitative easing, a term often used in the news? Answer:

B) How is the Fed different from the Treasury? And why were they separated in 1913, the year the Fed was created? Answer:

C) How does expansionary monetary policy use open market operations to achieve its goal of economic stimulation (raising the RGDP)? Answer:

How does the rotating membership of the FOMC work? Why does the president of New York's Federal Reserve Bank always have a vote in the FOMC?

Two mutually exclusive alternatives of A and B have both useful lives of 6 years. For Alternative A there is an initial cost of $7,200, and the annual benefits, which is $2,100 for the first year and it increases by $120 each year for the next 5 years. For Alternative B, there is an initial cost of $3000 and the annual benefits, which is $1200 for the first year, and it increases by $100 each year for the next 5 years, By following Rate of Return Analysis and defining incremental rate of return define which alternative should be chosen? MARR is 11% (Wherever Necessary, use interest rates of 8% and 10% for your trials)

1. Name a business that you believe has experienced declining costs attributable to computerization.
2. Were variable costs reduced?
3. What fixed costs increase was involved?
4. Does it seem clear that average total cost (ATC) went down? Explain.

Suppose a country suddenly faces an unexpected temporary increase in net taxes on households, i.e. T rises temporarily, so disposable income for any given Y drops temporarily. The country has a floating exchange rate for its currency. Use a DD-AA diagram to answer the following (you do not need to show the diagram, but you do need to write in words what happens on it).

a) Indicate and explain any movement(s) of the DD and AA curves that can be observed as a result of this activity.

b) What happens to the exchange rate, E, and national income, Y, as a result? Explain.

What doe Marx mean by the term self valorizing value?

There are many bizarre examples of complements and substitutes in the real world. For example, in
my home ketchup and Kraft macaroni and cheese are complements (everyone else here puts ketchup
on their mac and cheese, which concerns me!).
a. Come up with two bizarre/odd real-world examples of a pair of goods that are complements.
Explain why they are complements.
b. Choose one of those pairs of complements. Draw a consumer’s demand curve for each good (so
two graphs). Suppose the price drops for one of those goods (I don’t care which one, you choose).
What happens in that graph? What happens to the demand for the other complementary good?
Explain.
c. Come up with two real-world examples of a pair of substitutes. Explain how they are substitutes.
d. Choose one of those pairs of substitutes. Draw a consumer’s demand curve for each good (so two
graphs). Suppose the price drops for one of those goods (I don’t care which one, you choose).
What happens in that graph? What happens to the demand for the other good? Explain.

Why do industrialized countries upper hand on developing countries?

please answer in paragraph