The introduction of technologies such as radio frequency identification tags (RFIDs) have created efficiencies for manufacturers and producers.

true-false

The potential for conflict among members is increased in a corporate vertical marketing system.

true - false

Explain 5 consequences on foreign direct investment when a country receives a lower sovereign rating.

The production team of a furniture manufacturing company is under pressure to increase profitability to get a loan from the bank to purchase a new pattern cutting machine. At the same time, there is a waste wood chips been thrown all the way.
i. Define the company’s problem in creative ways.
ii. Suggest TWO (2) potential alternatives for your defined problem in (i).

An assessment of the economic impact of COVID 19 on the Australian economy – an International Macroeconomic perspective.

Choice of exchange rate regime – would Australia be in a better position if it had a fixed exchange rate?

c. Discuss how an economist might consider the differences in incentives, efficiency and costs associated with the use of command and control (technology standards), Pigouvian taxes and tradeadle emissions permits to deal with issues of air pollution from factories?

Consider the GFC of 2008
a/ Why were mortgage backed securities (MBS) considered toxic. Explain your working and answer in words.

b/ What caused MBS to rapidly lose value? Explain your working and answer in words.

Question 41 1 pts

The effect of the multiplier associated with an initial increase in autonomous expenditures will be:

Group of answer choices

zero if there is an increase in the price level.

lessened if inflation occurs.

enhanced if inflation occurs.

the same whether or not inflation occurs.

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Question 42 1 pts

"Discretionary" fiscal policy is so named because it:

Group of answer choices

occurs automatically as the nation's level of GDP changes.

is invoked secretly by the Council of Economic Advisors.

involves specific change in taxes and expenditures undertaken expressly for stabilization purposes at the option of Congress.

is undertaken at the option of the nation's central bank.

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Question 43 1 pts

Expansionary fiscal policy is so named because it:

Group of answer choices

is aimed at achieving greater price stability.

a involves the expansion of the money supply

necessarily expands the size of the government

is designed to expand real GDP.

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Question 44 1 pts

The effect of built-in stabilizers (non-discretionary fiscal policies) on the business cycle is to:

Group of answer choices

only help the economy when it is in a downswing (recessionary).

make rich people richer and poor people poorer.

make both upswings and downswings smaller.

make the upswings larger and the downswings smaller.

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Question 45 1 pts

A $1 increase in government purchases will likely have a greater impact on real GDP than a $1 decrease in taxes because: (HINT: Don't forget about the mpc.)

Group of answer choices

government spending increases disposable income, tax cuts do not

a portion of a tax cut will be saved.

taxes vary directly with income.

government spending increases the money supply, tax cuts do not

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Question 46 1 pts

Which are contractionary fiscal policies?

Group of answer choices

decrease in the money supply.

increase in T and decreases in G.

decrease in T and increases in G.

increase taxation (T) and government spending (G).

an increase in interest rates.

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Question 47 1 pts

Which of the following best exemplifies "crowding out"? An increase in government spending:

Group of answer choices

is financed by borrowing, raising interest rates & causing private investment to fall

forces state & local governments to spend less.

is financed by an increase in the money supply, causing inflation.

causes taxes to rise automatically, reducing consumption.

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Question 48 1 pts

After virtually being in the economic stabilization policy "deep freeze" for over 2 decades, in the early days of "Great Recession":

Group of answer choices

none are correct

supply-side economics made a comeback

Walt Disney made a comeback

fiscal policy made a comeback

monetary policy made a comeback

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Question 49 1 pts

49. As noted in class, our (simple) spending multipliers were somewhat unrealistic. The actual size of the real world (or complex) spending multiplier is equal to (approximately):

Group of answer choices

10

1.5

0

negative 1.5

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Question 50 1 pts

Using an AS/AD diagram, how would you show expansionary fiscal policy?

Group of answer choices

with a leftward shift of the AS curve

with a rightward shift of the AS curve

with a leftward shift of the AD curve

with a rightward shift of the AD curve

Goods Market:  C=50 + 0.8(Y-T) Money Market: M/P=490 I=120-400r L(r,y)=.5y-100r G=110 T=50

a. What are the IS and LM equations? Calculate and show graphically the equilibrium output and interest rates?

b. Suppose there is an increased risk in the financial markets changing money demand by 50 units (add or subtract 50 from money demand). Calculate the SR and LR.

c. If the Federal Reserve wanted to stabilize the economy while at the SR equilibrium what policy would they need to conduct? Show this graphically and calculate how large of a policy they would need to conduct.

d. If the Government wanted to stabilize the economy while at the SR equilibrium what three policies could they conduct? Show this graphically and calculate how large of each of the policies would need to be. How different are these policies from what would have been suggested from the Fiscal Multipliers that were learned in introduction to macro?

Question 36 1 pts

Assuming variable output prices, a decrease in aggregate demand will decrease (HINT: AS curve is upward sloping)

Group of answer choices

the price level & increase the real domestic output.

both real output & the price level.

the real domestic output & no impact on the price level.

the price level & have no effect on real domestic output.

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Question 37 1 pts

A leftward shift of the AS curve:

Group of answer choices

would increase output supplied at all price levels.

could be caused by an increase in the overall price level.

would result in both a higher price level and a lower level of output

could be caused by a decrease in input prices (a positive supply shock).

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Question 38 1 pts

A leftward shift of the AS curve is often associated with:

Group of answer choices

the stagflation of the 1970's.

demand-pull inflation of the "Vietnam era" of the 1960's.

the stock market crash of 1987.

the Great Depression.

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Question 39 1 pts

The inexplicable disappearance of the typically abundant harvest of anchovies off the coast of Peru contributed to the stagflation of the 1970's.

Group of answer choices

strange, but true

oh, c'mon, now you're just making things up: false

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Question 40 1 pts

Which of the following is not a tool of fiscal policy?

Group of answer choices

taxes

the money supply (more specifically, interest rates).

government purchases

unemployment insurance

All are "tools of fiscal policy."

Question 31 1 pts

The Pigou-Wealth effect indicates that

Group of answer choices

a lower price level will increase the real value of financial assets and therefore increase spending.

a decrease in the overall price level would shift the AD curve leftward

a higher price level will increase the real value of financial assets and therefore increase spending

an increase in the overall price level would shift the AD curve leftward

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Question 32 1 pts

The Keynes-Interest Rate effect suggests that

Group of answer choices

a lower price level might lead to a reduction in the demand for money resulting in a fall in the rate of interest, the result will be a movement down the AD curve.

lower prices and, therefore lower interest rates would cause the AD curve to shift left.

higher prices and, therefore higher interest rates would cause the AD curve to shift.

the above scenario- lower prices, lower interest rates- would result in a movement up the AD curve.

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Question 33 1 pts

Which one of the following would not shift the AD curve?

Group of answer choices

a change in government expenditures (G).

a change in household expectations about employment/income

a decline in the price level.

a change in interest rates

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Question 34 1 pts

The (short-run) aggregate supply (AS) curve:

Group of answer choices

is down sloping because real purchasing power increases as the price level falls.

shows the various amounts of output which firms wish to supply at each price level.

contains a vertical range where output is variable and prices are constant.

Is explained by the Keynes, Pigou and Foreign Purchases effects.

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Question 35 1 pts

The equilibrium price level and level of real output (GDP) occur where:

Group of answer choices

the AD and AS curves intersect.

real output is as high as possible.

the price level is at its lowest level possible.

exports equal imports.

what are the implicit and explicit cost associated with introducing a new product ? what is the total cost associated with this venture and what happens to this cost in short and long run production?

Based on your knowledge of the current status of the Pandemic, and the numerous reported progress on solutions to fight it, make a forecast of the tourism sector. Specifically, use the Scenario Writing Method, write ONE (1) mini probable OPTIMISTIC scenario forecast of the tourism sector a year from now (2021)

Newfoundland’s fishing industry has recently declined sharply due to overfishing, even though fishing companies were supposedly bound by a quota agreement. If all fishermen had abided by the agreement, yields could have been maintained at high levels.

Model this situation as a prisoner’s dilemma in which the players are Company A and Company B, and the strategies are to keep the quota and break the quota. Suppose that if both companies keep the quota, then each receives a payoff of $100, and if both break the quota, then each receives a payoff of $0. On the other hand, if one of the companies breaks the quota and the other keeps the quota, then the company that breaks the quota receives a payoff of $150, and the company that keeps the quota receives a payoff of -$50.

Instructions: Enter the players' payoffs in the payoff matrix below. Be sure to include a negative sign (-) in front of any negative numbers.

Company A

Keep quota Break quota

Company B                      Keep quota                                       Break quota   $ for Company A   $ for Company B   $ for Company A       $ for Company B $ for Company A $ for Company B   $ for Company A   $ for Company B

What is the dominant strategy for both companies?

	Break the quota.
	Neither company has a dominant strategy.
	Keep the quota.

In equilibrium, what is each company's payoff?

	Each company will receive a payoff of $0.
	Company B will receive a payoff of $150, and Company A will receive a payoff of -$50.
	Each company will receive a payoff of $100.
	Company A will receive a payoff of $150, and Company B will receive a payoff of -$50.

Relative to the equilibrium outcome, both companies would be better off if they (Click to select)both kept the quotaboth broke the quota.