Suppose some students are able to borrow for college at a rate of 5%, which also is the market rate of return. For other students, the only source of funds to borrow for college is Louie the Loanshark, who charges an interest rate of 20%. What are the consequences for the educational attainment of these different students? Is there a potential role for government intervention in the education market?

Explain the difference between a short-run and a long-run credit constraint. Give an example of a policy that could overcome each type of constraint. Why is it important for financial aid policy to distinguish between short- and long-run credit constraints?

Beginning in October 2016 for the 2017-2019 academic year, the Free Application for Federal Student Aid (FAFSA) will be available earlier– in October, rather than January– and the FAFSA will now use tax information from two years ago (“prior-prior” year) as opposed to last year a. What economic problem does this policy change address in the allocation of student aid? b. Who benefits from this policy change? c. What are the costs of this policy change? Are there any losers?

. In 1973, the Basic Education Opportunity Grant (later renamed the Pell Grant) was established to provide grant aid to low-income students—not just recent high school graduates (“traditional students”) but also older students who might be returning to school (“nontraditional students”). The program was intended to increase college enrollment among the students most likely to face difficulties financing a college education. a. How is the effect of the Pell grant on college enrollment different for a student who is in his mid-20s than for a recent high school graduate?

Describe the profit maximizing position of a perfectly competitive firm in the long-run. Use a diagram to motivate your answer.

find an article about a merger or acquisition that was announced within the last month. you should include a brief summary of the deal, along with your thoughts on the deal. To help you get started, here are some issues to consider:

Is this a good deal (i.e., is this deal likely to create value for the acquiring firm)?

What synergies does the deal create? Are these synergies realizable?

What is the catalyst for the deal? Why is the deal happening now?

minimum 300 words

The market for kerosene in the U.S. and Europe began to weaken, beginning around 1900, primarily because of a prolonged economic depression.

In a paper appearing in the National Tax Journal, titled “The cost of complexity in federal student aid: Lessons from optimal tax theory and behavioral economics”, Susan Dynarski and Judith Scott-Clayton examine the current federal methodology for determining eligibility for financial aid. At the time they wrote, it was true that “The FAFSA, at five pages and 128 questions, is lengthier than Form 1040EZ and Form 1040A. It is comparable to Form 1040 (two pages, with 118 questions).” Why might the complexity of the FAFSA reduce efficiency in the distribution of financial AID?  

In the real business cycle model, suppose that firms become infected with pessimism (for example, due to COVID-19 outbreak) and they expect that total factor productivity will be much lower in the future.

a. Determine the equilibrium effects of this.
b. If waves of optimism and pessimism of this sort cause GDP to fluctuate, does the model explain the key business cycle facts?
c. Suppose that the monetary authority wants to stabilize the price level in the face of a wave of pessimism. Determine what it should do, and explain.

(History of Economic Thought) Question.

Even though he considered the analyses of some classical economists to be vulgar, Marx valued highly the contributions of economists like Smith and Ricardo, and considered them to be true scientists. In what sense did Marx consider their efforts in economics to be ‘scientific’?

Questions ( 1 ) To use Aggregate Supplier & Aggregate Demand framework in order to explain how an expansionary monetary policy and expansionary fiscal policy can increase the national income (fight recession)?

Subject ::COVID-19 counter: UAE businesses are out to save their cash

By allowing businesses to save on costs, the UAE government has managed to ease short-term concerns. But businesses will need all they cash they can save or loan to get through the difficult months.

Dubai: Preserve cash at all costs – that’s the only priority for UAE businesses as they wait for commercial activity to resume. Even sending their staff on paid annual leaves is a way of cost saving for them.

“More businesses are “forcing” their staff to use up all their accumulated leave rather than allow any encashment,” said an HR consultant advising two of the leading corporate houses in Dubai. “So far, few businesses have taken the real hard decisions of massive layoffs or asking them to go in for extended pay cuts.

“But that will come... soon.”

On Monday, the corporate sector was shaken up by a memo reportedly signed by Emaar’s Mohammed Alabbar that talked about voluntary pay cuts for everyone from the chairman – Alabbar – right down to the support staff. The cuts were 100 per cent for Alabbar and up to 30 per cent for Grade 3 staffers. The cuts came into effect from April 1.

Emaar has so far not officially confirmed whether the circulated memo states the actual case, and if yes, how long the cuts will be in effect. “It’s likely that the cuts will only be for a set period of two to three months,” said a consultant.

Suppose a company invests in technological innovation and, therefore, has lower capital
stocks in the current period. What are the effects on current aggregate output, consumption, investment, employment, real wage, real interest rate, nominal interest rate, and price level? Explain your results and show the graph.

(History of Economic Thought) Question.

Why is division of labor so important for Adam Smith? Make sure that you also observe the connections Smith made between the ‘division of labor’ and the ‘market size’ on one hand, and the effects of this division on the ‘health of the worker’ on the other.