Consider a simple economy with two types of workers. There are capable workers (type A), constituting 70% of the population, with remaining workers (type B) being of average ability. There are two types of job opportunities as well, labeled Good and Bad. In a Bad job, either type of worker produces 20 units of output. In a Good job, Type A worker produces 80 units, and the Type B worker produces 0. The economy is doing well so there is enough demand for workers. This means that for each type of job companies must pay what they expect the employee to produce. Companies must hire each worker without observing his type and pay him before knowing his actual output. But Type A workers can signal their qualification by getting educated. For a Type A worker, the cost of getting educated to level n is 0.4n2, whereas for a Type B worker, it is n2. These costs are measured in the same units as output, and n must be an integer.

(a) What is the minimum level of n that will achieve separation?

(b) Now suppose the signal is made unavailable. Which kind of jobs will be filled by which kinds of workers and at what wages? Who will gain and who will lose from this change?

In April 2020, the U.S. national debts has exceeded $23.8 Trillion. It is rising much faster than the U.S. economy, and it will soar to more than $34 trillion in 2029, according to the budget office.

Why does the U.S. national debt continue to rise?

What is the impacts of a huge and growing U.S. national debt on the U.S. economy?

How to reduce the U.S. national debt?

Some economists claim that inflation is always a “monetary phenomenon.” What do they mean by this claim and are they correct?

How do you think recessions influence elections?

Explain, why Perfect Competition is regarded as the best market structure for the society?

The manager of the bank where you work tells you that your bank has $5 million in excess reserves. She also tells you that the bank has $300 million in deposits, $50 million in government bonds, and $200 million in loans. Show your bank’s T-account. What is the required reserve ratio? What is the money supply multiplier? Suppose a customer withdraws $10 million. Show your bank’s new T-account. Does your bank now still meet the minimum reserve requirement? If not, what should be done to resolve the issue? What will happen to the supply of money? by what amount?

What is the CSME?

What would you strengthen in the CSME?

(2) List the properties of indifference curves and explain the intuition behind each property (that is, why must the indifference curve obey this property)?

Provide two reasons why a country may not want to specialize totally in the production of the good in which it has a comparative advantage.

• What do you think were the reasons why Korea’s economy did not develop in the past?
• What challenges did Korea face?
• How could South Korea overcome these challenges?
• What were some of South Korea’s first exports?

1.For a certain data set, r=0.57. Say whether the following statements are true or false and explain.

a.There are no outliers

b.There is anon-linear association.

2.True/False: average values of x correspond to above average values of y. Explain.

Suppose R$ > R€ + (E_($/€)^e – E$/€)/E$/€. Explain how the foreign exchange market will get into equilibrium in this situation. (Hint: Do investors prefer holding dollar deposits or euro deposits? How will their actions affect E$/€?)

2. Traditionally, monopolies are harmful because they lead to higher prices for consumers. However, using Google for search is free. Are there any potential harmful effects of Google’s significant market power?

1. How has Google been effective in getting and maintaining monopoly power as a search engine? Is this sustainable?