- Describe the monetary policy tools the Fed can use to affect the monetary base.

- Compare and contrast expansionary and contractionary monetary policies.

1. During his prime in the 1980’s Larry Bird was one of the world’s best basketball players, making in excess of $7million per year playing for the Boston Celtics. However, at one point during his basketball playing days the NBA players went on strike. While on strike Larry took a job as a garbage man where he made approximately $30,000 per year.
   1. Given that Larry’s next best job, after being a basketball player, only paid $30,000, why couldn’t the Boston Celtics have simply paid Larry a bit more than $30,000 (or perhaps even ONLY $1 million) to play for them, rather than $7million? That is, what is the mechanism that forces the Celtics to pay so much more than Larry would have willingly accepted to play the sport he loved?

2. Given that Larry is so rich, how much higher prices does Larry pay for gasoline, food, clothes, etc, than the rest of us merely middle class folks? Please explain briefly.

Economics: Why do brides spend so much money on a wedding dress they will wear one time? While women often spend thousands of dollars on a gown, men only spend a couple hundred on a tuxedo, or even just rent it. Why is this?

What are the economic principles that can explain for why this is?

How does fiscal policy determine the rules of the market? Who controls the rules of the market? Are the rules fair? Are people paid what they are worth in the market? Should labor unions be encouraged? Why is it critically important for wages of the middle class to rise for the economy to recover? (Discuss in terms of Keynesian theory).

PLease answer the questions in brief with graphs.

A change in relative prices will always change a utility maximizing consumer’s marginal rate of substitution.

1b) Competitive firms shutdown production when price falls below the minimum of the average total cost curve.

1c) An increase the price of firms output will always increase the use of an input.

1d) An import tariff on a commodity will increase the price for the producers of the commodity producers in the exporting country.

1e) When ending stocks are large, prices tend to be very unstable.

please answer this question in brief with graphs.

2a. In two paragraphs, describe the sources of the gains from trade and why countries use import tariffs.

2b In two paragraphs, describe how the COVID-19 pandemic has impacted the global macro economy and multiple ways it has impacted a specific agricultural commodity market (e.g. corn, beef, wheat).

Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment.

         a. How does this policy affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rate and the trade balance?

         b. Representatives of several large exports oppose the policy. Why might that be the case?

Please try to answer as soon as possible. Thanks in advance.

Answer the questions true, false or uncertain and provide a brief explanation or a graph to defend your answer.

1 a) A change in relative prices will always change a utility maximizing consumer’s marginal rate of substitution.

1b) Competitive firms shutdown production when price falls below the minimum of the average total cost curve.

1c) An increase the price of firms output will always increase the use of an input.

1d) An import tariff on a commodity will increase the price for the producers of the commodity producers in the exporting country.

1e) When ending stocks are large, prices tend to be very unstable.

Please answer the questions as soon as possible. Thanks in advance.

Please explain in brief in one to two paragraphs and provide graphs.

1. In two paragraphs, describe the sources of the gains from trade and why countries use import tariffs.

2b In two paragraphs, describe how the COVID-19 pandemic has impacted the global macroeconomy and multiple ways it has impacted a specific agricultural commodity market (e.g. corn, beef, wheat).

I. In each of the following two scenarios, what type of transaction is involved? (spot exchange, contract, or vertical integration). Explain your answer.

3. XYZ Corporation a big automobile company purchases Mich Tires, a local tire company.

4. Each year LAREDO bell, a new fast food company, has a legal obligation to purchase 0.5 billion pounds of potatoes from AGRI Expert located in San Antonio.

Since the 2007 financial crisis the Fed’s portfolio of Treasury and mortgage-backed securities has grown tremendously, from $900 to around $4.0 trillion today. In recent years there has been much discussion about how and how quickly the Fed may begin reducing the size of its balance sheet. What is the Fed’s balance sheet? What’s your take? Should the balance sheet be smaller

In each of the following two scenarios, what type of transaction is involved? (spot exchange, contract, or vertical integration). Explain your answer.

XYZ Corporation a big automobile company purchases Mich Tires, a local tire company.

Choose either free market, democratic socialism, socialism, or communism. Limit your answer to 7-12 sentences if possible.

“Based on my prior and current knowledge, I support a country that adopts a ____________ economic system because…”