Questions
With examples, discuss the effect of protectionism trade policies on the socio-economic development of developing countries.

With examples, discuss the effect of protectionism trade policies on the socio-economic development of developing countries.

In: Economics

Give two detailed arguments for illegal dumping ( at least 150 words )

Give two detailed arguments for illegal dumping ( at least 150 words )

In: Economics

Describe what it means to say a strategic game played with 2 players is in a...

Describe what it means to say a strategic game played with 2 players is in a Nash equilibrium. Then, describe the standard trust game, and identify the Nash equilibrium. Explain why this equilibrium is a Nash Equilibrium. Finally, explain why people actually playing this game might not play as the Nash Equilibrium predicts.

In: Economics

Supply of good A is perfectly inelastic. Suppose a tax is levied on buyers. Draw a...

Supply of good A is perfectly inelastic. Suppose a tax is levied on buyers. Draw a graph to show the impacts on the market for good A. Your graph should indicate the CS, PS, tax revenue and DWL after tax.

In: Economics

On December 8, 1986, because of a severe business downturn, Ingram Manufacturing Company laid off 61...

On December 8, 1986, because of a severe business downturn, Ingram Manufacturing Company laid off 61 bargaining unit employees at plant no. 28. Then on June 12, 1987, the company subcontracted with Monroe Manufacturing Company for 49 wheels. Monroe Manufacturing Company was to fit, weld and machine the core of the wheel according to Ingram Manufacturing Company’s design. The local union representing workers at plant no. 28 has decided to file a grievance, alleging that the Company has violated the collective bargaining agreement by subcontracting work while employees are on layoff.

  1. To settle this matter, the union and Ingram Manufacturing Company are deciding whether to hire a permanent arbitrator to handle this grievance and future grievances, or an ad hoc arbitrator. Evaluate the merits of each kind of arbitrator.

In: Economics

Critically access the theoretical propositions of the Solow neo-classical model of growth. How does endogenous growth...

Critically access the theoretical propositions of the Solow neo-classical model of growth. How does endogenous growth model help to address some of the weaknesses of the Solow model? Illustrate the implications of technical advances and saving rates increase on growth according to both of these approaches.50 marks

In: Economics

Briefly explain the “efficient markets hypothesis”. What criticisms have been levelled against it? Discuss.

Briefly explain the efficient markets hypothesis. What criticisms have been levelled against it? Discuss.

In: Economics

Based on the current pandemic COVID-19, write a scenario forecast of the tourism sector a year...

Based on the current pandemic COVID-19, write a scenario forecast of the tourism sector a year from now (2021)?

In: Economics

Malaysia can produce 20 tons of fish or 5 tons of rice per month. Thailand can...

Malaysia can produce 20 tons of fish or 5 tons of rice per month. Thailand can produce 25 tons of fish or 20 tons of rice per month.

a) Assuming both countries are using the same amount of capital and labor, which country has the absolute advantage in producing fish? In producing rice?

b) What is the opportunity cost of producing one ton of fish for Malaysia? For Thailand? Show work.

c) What is the opportunity cost of producing one ton of rice for Malaysia? For Thailand? Show work.

d) Which country has the comparative advantage in producing fish? In producing rice?

In: Economics

What do you think the long-term ramifications will be for other countries without the US contributions...

What do you think the long-term ramifications will be for other countries without the US contributions to WHO

In: Economics

Capital (K) Labor (L) Output (Q) MPL APL MC AVC ATC 10 0 0    10...

Capital (K)

Labor (L)

Output (Q)

MPL

APL

MC

AVC

ATC

10

0

0

  

10

1

10

10

10

10

2

24

14

12

10

3

39

15

13

10

4

52

13

13

10

5

61

9

12.2

10

6

66

5

11

10

7

66

0

9.4

10

8

64

-2

8

Assume that each unit of labor costs $10 (the wage for a breakfast shift) and that fixed cost is $5.  Also assume that there are no ingredient costs or electricity costs (just to make it easier).

Derive the cost curves:   MC  AVC  and ATC.     Then sketch them (its best to draw and then submit a pdf or jpeg)

Hint: You don’t have enough detail to do MC for each unit of output, so you need to find it for the increments shown in the table (for example MC for the first 10 breakfasts is $10 or $1 per breakfast in that range so put $1 as MC per unit there) So you are finding MC per unit for units in each range based on the info given.  

Fill in columns for MC  AVC and ATC  and graph those cost curves.

In: Economics

21) The two ways to view macroeconomic equilibrium in the Keynesian model are C = S...

21)
The two ways to view macroeconomic equilibrium in the Keynesian model are
C = S and I = Y.
C = Y and S = I.
C = I and S = Y.
C = T and G = S.


22)
According to the table, at what level of income is the economy in equilibrium?
100
150
200
250


23)
Which of the following formulae is the expression of the multiplier?
a + bY
1/(1-b)
1/(1-b) * (a + I)
1/b


24)
Keynes believed that expansionary fiscal policy was the best response to a period of high unemployment.
true
false


25)
What would cause the aggregate expenditures line in the graph to shift upward?
An increase in taxes
A government program that increased consumer savings
A decrease in government spending
An increase in government spending


26)
When NX > 0, it means that we are buying more from foreigners than foreigners are buying from us.
true
false

In: Economics

If Sally’s consumption function is linear and her marginal propensity to consume is 0.8, this means...

If Sally’s consumption function is linear and her marginal propensity to consume is 0.8, this means that
Sally’s total spending cannot exceed 80% of her income.
Sally will spend at least 80% of her total income.
Sally will not save money regardless of her income.
Sally will begin to save at the point where her marginal income is equal to 0.8.

  

  

  

(19)
If a household’s income increases from $50,000 to $60,000, and as a result, its consumption increases from $45,000 to $51,000, then what is the slope of its savings function? (Assume no taxes.)
0.6
0.15
0.85
0.4

  

  

  

(20)
The graph shows aggregate expenditures as a function of income. Given the information in the graph, which of the following statements are true?
There is no autonomous spending.
Business spending, government spending, and net exports are treated as autonomous spending.
Aggregate expenditures do not vary with increasing income.
Aggregate expenditures will fall to $0 when income falls to $0.

  

  

  

(21)
The two ways to view macroeconomic equilibrium in the Keynesian model are
C = S and I = Y.
C = Y and S = I.
C = I and S = Y.
C = T and G = S.

  

  

  

(22)
According to the table, at what level of income is the economy in equilibrium?
100
150
200
250

  

In: Economics

What would happen if the government increased its spending in response to an increase in consumer...

What would happen if the government increased its spending in response to an increase in consumer savings?
The increase in government spending would cause output to rise by even more than it would as a result of the increase in savings.
The increase in government spending would offset (fully or partially) the decline in consumer spending.
The increase in government spending would cause investment spending to fall, causing output to decline.
None of the above.

  

  

  

(8)
An increase in taxes reduces aggregate expenditures by an amount equal to
the change in taxes multiplied by −b.
the change in taxes multiplied by (−b/1 − b).
the change in taxes multiplied by (1/1 − b).
the change in taxes.

  

  

  

(9)
According to Say’s Law, supply creates demand.
true
false

  

  

  

(10)
Which of the following statements regarding aggregate expenditures is correct?
Consumer spending, or consumption, decreases as consumer income increases.
When the interest rate is low, investment spending increases.
If the exchange rate rises, foreigners will increase their purchases of U.S. goods and services.
Government spending depends on aggregate income.

  

  

  

(11)
If the marginal propensity to consume = .85 and taxes = 0, we know that consumers typically save $.15 of each additional dollar of income they receive.
true
false

  

In: Economics

Assume that country X subsidizes its exports and country Y imposes a countervailing tariff that offset...

Assume that country X subsidizes its exports and country Y imposes a countervailing tariff that offset the subsidy. Explain why the relative prices in country Y would be unchanged. Discuss the welfare effects in the two countries. What would be the effect if country Y retaliates with an export subsidy but without countervailing tariffs on the product?

In: Economics