Q1. (a) WHAT DOES THE DOWNWARD SLOPING DEMAND CURVE IMPLIES? (b) WHAT IS THE BASIS FOR THE LAW OF SUPPLY (c) DISCUSS MANAGERIAL APPLICATION OF ELASTICITY OF DEMAND.

Suppose the market for apples is perfectly competitive. a) Suppose the government wants to boost the income of producers. Explain how they could use a minimum price (a price floor) or price support to do this. b) Which policy would producers prefer?

Discuss some of the reasons why poorer households are generally expected to be disproportionately affected by climate change, AND some of the reasons why poorer households may miss potentially profitable opportunities to adapt to climate change.

What suggestions does David Cay Johnson to improve the US economy? Do you agree or disagree with his suggestions? What do you suggest needs to be done?

Explain each in-depth and why.

How do consumption and investment spending affect aggregate expenditures and output over the business cycle?

Which is more responsible for volatility - consumption or investment spending or both?

How do government actions affect consumption and investment?

Why would Year-Ended Inflation rates be a strong indicator to analyse economic recession? Discuss strength and weaknesses.

Discuss Foreign Direct Investment as a method for internationalization, including the motives and selection decisions for locating FDI.

Do any labor and employment laws strike you as unfair and would you seek to strengthen or weaken current employment laws if you could? If so, what would you change?

Consider the global market of oil, which has become quite competitive, so you can rely on the supply and demand graph . A group of oil producing countries (OPEC) would like to impose a price floor, to prevent the price from reaching a low equilibrium level. Show graphically the effect of a successful price floor on oil buyers, sellers, and society at large.

In recent years, the number of new oil producers has risen considerably (one reason among many is the discovery of shale oil). How is this going to affect the market under the same price ceiling? Will OPEC find it easier to maintain the ceiling? Explain.

In terms of supply and demand in economics how does the Public Option under the Affordable Care Act affect the markets of healthcare?

Does supply go down and demand go up if more people become insured? Will costs go down if the Public Option strives to lower costs?

a) Assume a tax of 2 $ per unit is imposed on buyers. Show the impact of the tax on buyers, sellers, and economic efficiency. Carefully label your graph. Other things being equal, will a tax on sellers produce a better outcome? Will it change the burden of the tax? Explain.

b) Accounting professors earn more than Literature professors at most universities. What might be the reasons (use the supply and demand model)?

Question 21 (1 point)

If a firm in country B borrows from a bank in country A, and the loan is denominated in country B's currency, which party(ies) would stand to lose (in the loan transaction) from an unexpected devaluation of currency B (relative to currency A)? Assume the loan will be repaid at face value.

Question 21 options: