Utilizing the market for reserves and assuming that initially the federal funds rate is 0.5 percentage point below the discount rate but 0.5 percentage point above the interest rate paid on reserves,

a. Show what would happen to the federal funds rate if the FED decreased the discount rate by 0.3 percent

b. Show what would happen to the federal funds rate if the FED increased the interest rate paid on reserves by 0.75 percent

Suppose that, in the market for litres petrol, demand is given by P = 5 – 0.3Q, and supply is given by P = 1 + 0.1Q.

Further, suppose that the government provides a $1 per litre subsidy for petrol.

A. Calculate the effect of the subsidy on the equilibrium price and quantity.

B. Calculate the change in producer surplus and consumer surplus that result from the provision of the subsidy.

C. Does total surplus to everyone in the economy increase or decrease as a result of the subsidy? Explain why and calculate the amount of the change.

Section 2 Business Application in the EU

4. Discuss the positive and negative effects on consumer markets of EU market Competition Policy. Please use examples to support your response.

5. B+C Motorcycles are based in the UK looking to enter the European markets for the first time. Advise the company on the research information and methods that they should undertake in order to establish which country target market is most attractive to them.

6. Discuss the impact of robots on the millennial worker and the repercussions on EU Migration.

1. There are two firms, A and B producing differentiated products. Their demand curves are:

_{qA=100-2PA+3PB}

_{qB=120-2PB+2PA}

and both have MC=5. Note that demand curves are not symmetric. Assuming that firms are engaged in Bertrand price competition:

(a)Write down the profit function of firm A and find its price response function

Hint:
_{πA=(PA-5)(100-2PA+3PB)}

(b) Write down the profit function of firm B and find its price response function

(c) Find equilibrium prices P_A and P_B; equilibrium quantities q_A and q_B; and profits for firms A and B.

Your firm has a contract to purchase 1000 laptops from a Taiwanese company. The payment is due on receipt of the shipment and must be delivered in Taiwan on June 31, 2020. In March 2020, when you are arranging the contract, the laptops are each priced at 20,000 NT$ (New Taiwan Dollar). The spot rate in March 2020 is $1 in exchange for 30 NT$.

a) [5 points] What is the U.S. dollar price of one unit of laptop in March 2020?

b) [5 points] What will be the total USD price of the laptops when payment is due in June if the exchange rate does not change between March and June?

c) [10 points] What will be the total USD price of the laptops when payment is due in June if the USD depreciates against NT$ by 10% between March and June?

Analyse the effects of a payroll tax given per unit of labour. Specifically, analyse its impact on total employment, the real wage and total wage earnings.

Section 1 European Policy

1. EU Competition policy is out to ensure no organisation has unfair advantage over another. Cite the economic rationale behind this and discuss the benefits of free trade competition.

2. Increased tension in the Middle East is resulting in military aggression. What role, if any, should the EU play? Critically discuss both positive and negative aspects of an EU response.

3. How has the advent of the Single European Market affected the process of European Integration?

a. Use a diagram to explain the process by which a sudden decrease in households’ wealth because of a decline in the stock market will, in the short run, move the economy from one long-run macroeconomic equilibrium to another. Illustrate your answer with a diagram. b. Assuming you have elected a liberal government, how would your public policymakers fix this economy? c. Would the actions you describe in your answers to question (b) cause crowding out? Explain.

3. (a) Below is an extract from the Skills Development Levy Act No. 46 of 2016: “An Act to provide for the imposition, payment and collection of a skills development levy at the rate of 0.5 percent of gross emoluments; and to provide for matters connected with, or incidental to, the foregoing…” The levy is payable by employers. The levy will be collected by the Zambia Revenue Authority (ZRA) and paid into the Technical Education Vocational and Entrepreneurship Training Authority (TEVETA) Fund. Using an appropriate economic model, analyse the likely long-run effects of this Act on skills development, real wages and employment levels.

1. The Covid-19 pandemic has disrupted labour markets in ways not seen since the Great Depression. Businesses have had to come up with measures to mitigate against the adverse effects of the pandemic. These include rearranging work arrangements (work-from-home), forced leave, rotational work schedules, etc. Naturally, one would argue that level of unemployment has increased, at least in the short-term. You are the senior labour economist at the Ministry of Labour in Zambia. Write a one-page policy brief outlining a set of practical policy prescriptions to arrest the rising unemployment levels.

[Hint: Use a standard policy brief template]

1. Suppose there are two identical firms A and B facing a market demand P=100-2Q. Both firms have the same marginal cost MC=4.

1. Assume that firms are Cournot-competitors (in quantity). Find the equilibrium price, quantity and profits.
2. Assume that firms are Stackelberg-competitors (in quantity) and Firm A is the leading firm. Find the equilibrium price, quantity and profits.
3. What general conclusions can you derive from the answers that you found in (a) & (b)?

Please I need today answer for This question and it is very important and I need solution for this issue with all the details , and help me with all the details.Please write your answer to me by typning  not by hand writing, so that I can read and understand your answer clearly.thanks in advance/Ha

Question 1

Economies of scale change the conclusions from some of the traditional trade models and can be used to understand phenomena such as intraindustry trade, cluster formation and economic geography.

a) Use the monopolistic competition model with internal economies of scale to analyse the effect of trade liberalisation (between two identical countries) in the car sector, assuming that this sector is characterised by internal economies of scale (due to fixed costs) and product differentiation. How and why does welfare change? What can we say about the location of firms?

b) If you would instead look at the watch industry and assume that this industry is characterised by external economies of scale and technological spillovers between firms, what would the effect of trade liberalisation on welfare be (use the external economy model)? What can we say about the location of firms?

Question 2 (foreign investment)

If there are internal economies of scale, why would it ever make sense for a firm to produce the same good in more than one production facility?

Question 3

Consider the model where firms have different levels of marginal cost ( “Firm Responses to Trade: Winners, Losers, and Industry Performance”).Explain why trade liberalisation has the same effect on an economy as an increase in the aggregate productivity of an economy (i.e. that the average output per worker increases).

Some groups of nations are forming blocks, like North America or Europe. Are regional trade blocks good for global trade or not? Support your argument.