Ture or False.
1. Rwanda is an example of how colonialism can be good sometimes. The social structure supported by colonial powers was important in maintaining peace after Rawanda’s independence.

2. The reason some countries are developed, while others are not, is straightforward.

3. Imagine that I am looking-up values in the A column using values on a table E3:F10. VLOOKUP(A1, $E$3:$F$10,2,TRUE) MAY NOT work in practice.

4. Under the False-Paradigm model, development can be achieved by having students from poor countries earn their education in the developed world.

Most government interventions are designed to modify market outcomes, and the aim is usually to improve economic welfare. However, some interventions are specifically motivated purely by political considerations. For this task, we will consider political intervention in the labour market in Venezuela. This case study comes from the article by: Chang-Tai Hsieh, Edward Miguel, Daniel Ortega, and Francisco Rodriguez. 2011. The Price of Political Opposition: Evidence from Venezuela’s Maisanta, American Economic Journal: Applied Economics 3: 196–214.

http://ezproxy.deakin.edu.au/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=eds jsr&AN=edsjsr.41288634&authtype=sso&custid=deakin&site=eds-live&scope=site.

Note that the analysis in this reference is advanced and you do NOT have to read the entire study to complete the assignment. You should, however, read pages 196-198.

1. Figure 1 on page 197 of the Hsieh et al. (2011) article shows that over one million voters who signed a petition to remove President Hugo Chávez from office were discriminated against and experienced a drop in their wages and employment. Use demand and supply analysis to illustrate this situation.

2. With the aid of a diagram, discuss the impact this political event is likely to have had on Venezuela’s production possibilities and economic welfare.

The problem of mutual confidence of needs can be eliminated if :
A) trade is organized in a common market
B) Money is used to facilitate the exchange
C) Exchange of goods with goods ( exchange) is encouraged.
D) A and B are true


The sale of one-year discounted bond with a nominal value of $ 20,000 to selling for $15,000 ------------- means that it generates returns.
A) 3 percent
B) 20 percent
C) 25 Percent
D) 33.3 Percent

Lesson Six Discussion Question:

Please respond to the following discussion,

Very few would argue with the claim that the President’s role as Commander-in-Chief is the greatest formal power that a president possesses. Yet, in the Constitution, only Congress has the authority to formally “declare war.” Presidents for the last 60-70 years have openly stated that they do not need Congressional authorization to use the military to pursue America’s interests on the global stage. As proof, America has not formally declared war since WWII. So, Korea, Vietnam, Gulf War, Iraq War, Afghanistan, and now Syria have all been military exercises, but not wars in the Constitutional sense.

Has the power of the President of the United States as Commander-in-Chief exceeded constitutional boundaries and should those powers be curtailed, given the constant state of war we find ourselves in? Or should the President’s military powers continue to expand to address the growing chaos in our world, despite the Constitution or in congruence with the Constitution? Explain your answer.

Your initial discussion postings (250-300 words) should demonstrate an understanding and analysis of the assigned readings and video. While you are welcome to incorporate additional scholarly external sources you find in your initial post, you are expected to cite mainly from the assigned material in your response demonstrating connections between your thoughts and the course resources. Please remember you are expected to cite your sources in APA format, you can review the Citation/Reference portion of the syllabus to refer to examples of APA format. In addition, you will also need to post two substantial responses (about 150-200 words) to at least two of your classmates' posts.

The wage for workers in a competitive market is initially $10 and rent, the cost of capital (also rented in a competitive market), is initially $5. Now suppose that wages decrease to $8 and rent decreases to $2.

a) Describe how the scale effect changes a firm's use of labor and capital.

b) Describe how the substitution effect changes a firm's use of labor and capital.

c) Overall will a firm hire more or fewer workers? Will a firm rent more or less capital?

d) Will a firm change its production technology given the changes in w and r?

Moral Agency is the self-awareness, freedom, and ability to make choices based on everyone’s differing opinions and perceptions of right and wrong.

Question 2 options:

Question 3 (1 point)

Consumerism is:

Question 3 options:

Question 4 (1 point)

_______________ relies on the theory that global wealth is static and, therefore, prosperity depends on accumulating it from others.

Question 4 options:

Question 5 (1 point)

Businesses that wish to achieve the dual goal of human flourishing and responsible profits should model which ethical behavior?

Question 5 options:

Question 6 (1 point)

The cultural transmission and socialization process that stems from cultural exchange is called

Question 6 options:

Question 7 (1 point)

As a function of culture, ethics is not static but changes with each new era.

Question 7 options:

Question 8 (1 point)

Which intellectual, emotional, and social human trait affects all decision-making, including ethical decisions?

Question 8 options:

Question 9 (1 point)

Unfortunately, the emphasis on consumerism leads to the problem of:

Question 9 options:

Question 10 (1 point)

Ethical principles that apply everywhere despite differences in time, geography, and culture are referred to as

Question 10 options:

5.If the price elasticity of demand is 2.5, then a 40 percent decrease in the price of the good will lead to a _______ percent increase in the quantity demanded

A. 100.00 B. 22.5 C. 66.7 D. 150.00

6.Government intervention to reduce the level of pollution is prompted by the existence of

A. An inequitable distribution of income B. A monopoly C. Government failure D. Externalities

7.GDP is an incomplete measure of social welfare because

A. GDP includes the services of prison guards, so an increase in GDP could mean an increase in crime B. GDP does not include the value of volunteer activities, which may improve social welfare C. All of the above D. An increase in output may increase pollution and traffic congestion

8.In a competitive labor market, at wages above equilibrium, the

A. Labor-supply curve will shift to the left B. Quantity supplied of labor is greater than the quantity demanded C. Quantity demanded of labor is greater than the quantity supplied D. MRP of labor curve shifts to the right

9.A stock person who is laid off by a department store because retail sales across the country have decreased is _______ unemployed

A. Structurally B. Chronically C. Frictionally D. Cyclically

Part I.

If a central bank is selling its own currency in the foreign exchange market

a. It must have a fixed exchange rate

b. It has a BOP surplus

c. It has a BOP deficit

d. It has a CA deficit

e. It has a CA surplus

Part II.

If a central bank sells foreign currency (buys its own currency) in the foreign exchange market and simultaneously sells government bonds in the domestic market (an open market operation) then:

a. The money supply will expand and the currency will fall in value.

b. The foreign exchange intervention has been effectively sterilized.

c. The money supply will contract and the currency will rise in value.

d. The money supply will expand and the currency will rise in value.

e. The money supply will contract and the currency will fall in value.

Part III.

If a central bank simultaneously sells its own currency in the foreign exchange market AND purchases bonds in domestic open market operations then

a. The currency will depreciate as both of these actions cause the money supply to increase

b. The currency will appreciate as both of these actions cause the money supply to increase

c. The currency will appreciate as both of these actions cause the money supply to decrease

d. The second action sterilizes the first action

Briefly summarize Hamilton's economic policies. What were the goals of these policies, and why were they controversial (who opposed them and why?)?

Assess the arguments for and against taxing e-commerce at an international level as opposed to a domestic level.

1. Handsome Barbershop uses 12 workers, each working 8 hours, to cut hair for 192 heads. What is Handsome Barbershop's productivity?

Group of answer choices

96 heads per hour

24 heads per hour

2 heads per hour

16 heads per hour

2. The country of Venus does not trade with any other country. Its GDP is $17 billion. Its government purchases $5 billion worth of goods and services each year and collects $6 billion in taxes. Private saving in Venus is $5 billion. For Venus, investment is

Group of answer choices

$6 billion and consumption is $7 billion.

$6 billion and consumption is $6 billion.

$7 billion and consumption is $7 billion.

$7 billion and consumption is $6 billion.

3. Because of Coronavirus, the business community is pessimistic about the profitability of capital. Using the Market for Loanable Funds model, the equilibrium

Group of answer choices

interest rate and saving will fall

interest rate rises and saving falls.

saving falls and interest rate rises.

interest rate and saving will rise.

4. In the Market for Loanable Funds model, which of the following events would shift the savings curve to the right?

Group of answer choices

In response to tax reform, firms are encouraged to invest more than they previously invested.

In response to tax reform, households are encouraged to save more than they previously saved.

Government goes from running a balanced budget to running a budget deficit.

Any of the above events would shift the savings curve to the right.

5. If the reserve ratio is 8 percent, then the money multiplier is

Group of answer choices

2.5

12.5

0.08.

10.

6. If the reserve ratio is 20 percent, then $1,200 of additional deposits would ultimately generate

Group of answer choices

$24,000 of money.

$6,000 of money.

$60,000 of money.

$1,200 of money.

7. If Y and V are constant and M triples, the quantity theory of money equation implies that the price level

Group of answer choices

more than triples.

changes but less than triples.

triples.

does not change.

An agent chooses high or low effort on a project. If the agent exert's high effort, the project will succeed with prob. 0.96, but under low effort the prob. of success is only 0.74. The ex ante cost of high effort is $500 and the cost of low effort is $0. The agent will be paid $Z only if the project succeeds. What is the minimum Z necessary to persuade the agent to choose high effort?

Group of answer choices

$2,133

$2,273

$2,445

$2,544

An investor has wealth of $500 and a project that requires a $500 investment. If the investor choose Safe, the project yields revenue $580, but if the investor chooses Risky, the project yields revenue $660 with prob. 0.75 and revenue $0 otherwise. If the investor uses her own wealth, her final (expected) payoff from choosing Safe is ____ and from Risky it is ____.

Group of answer choices

$565; $522

$565; $495

$580; $522

$580; $495

Demonstrate the attempt to justify the free market in both utilitarian and rights-based (deontological) ethics. Do you think that either of these approaches (or perhaps both) effectively serves to justify a free market system in whole or in part? Give reasons for your answer.

32. The discounted present value of a payment is the value ___ of the payment ___.

a. today; made yesterday

b. tomorrow; made today        

c. today; made tomorrow

d. tomorrow; made yesterday

e. yesterday; made today

33. The term structure of interest rates:

a. represents the variation in yields for similar instruments differing only in maturity.

b. reflects differing tax treatment received by different instruments.

c. always results in an upward-sloping yield curve.

d. usually results in an inverted yield curve.

e. depends upon the payment terms of the security – whether coupons are paid out every six months versus every year.

34. When it comes to financial matters, the views of Aristotle can be stated as:

a. usury is nature’s way of helping each other.

b. the fact that money is barren makes it the ideal medium of exchange.

c. charging interest is immoral because money is not productive.

d. when you lend money, it grows more money.

e. interest is too high if it can’t be paid back.

35. Which of the following is true?

a. Early forms of interest arose from the lending of seeds and animals that could reproduce in order to pay off the interest.

b. Ancient Babylonians that lent silver were regulated in terms of how much interest they could charge.

c. In ancient India, temples served a banking function by issuing what we would today call a “bill of exchange.”

d. In England in the 1600s, money began to take the form of tradeable promissory notes.

e. All of the above.

36. The highest 30 year monthly mortgage rate of interest since 1971 was in:

a. August of 2011.

b. March of 2007.

c. July of 1991.

d. October of 1981.

e. May of 1985.

37. According to Louise Yamada, based on interest rate changes in America over the past two hundred years:

a. we should expect rates to have bottomed out in recent years and to rise for many years to come.

b. we have seen ten sharp downturns in interest rates over the many cycles since 1798.

c. interest rates will be falling by 3% to 5% over the next ten years.

d. higher interest rates signal the end of a bull market until they get up to about 5%.

e. None of the above.

38. Which of the following is false about Harvard professor Paul Schmelzing’s views and study of interest rates?

a. When interest rates change, they will rise only very slowly.

b. Most of the depressions in real interest rates for the past 700 years were due to wars and natural catastrophes.

c. His study included rates from Italy in the 14th and 15th centuries.

d. The real rate over the past 700 years has averaged under 5%.

e. The real rate over the past 200 years has averaged 2.6%.

41. During World War I, the marginal income tax rate (which began in 1913) on incomes over $750,000 was:

a. 1%.

b. 11%.

c. 25%.

d. 42%.

e. 76%.