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:

Present a labor market analysis (a diagram and accompanying “story”) that describes how technological improvement will tend to affect the nominal wage level, real wage level, and employment level, assuming the technological improvement increases labor productivity.

a. Suppose that business pessimism leads to a reduction in investment demand. What are the short-run (immediate) effects on output, the unemployment rate, the real interest rate, consumption and investment?

b. If the nominal interest rate is reduced to the zero lower bound by the reduction in investment demand, what happens over time to inflation, output, the unemployment rate, and the real interest rate?

c. In this circumstance, discuss the ability of monetary and fiscal policies to restore full employment, that is, to return output and the unemployment rate to their natural rates.

Suppose that individuals become more optimistic about their future incomes, and increase consumption at their current levels of disposable income. Use the Romer model to explain the short-run (immediate) and long-run effects of this law on inflation, output, the real interest rate, consumption, and investment.

1. The table below shows price and quantity data for a hypothetical economy.

Assume that a typical consumer’s food basket contains only coffee and tea. Moreover, assume that consumers are completely indifferent between coffee and tea. If the official “food inflation rate” for 2018 is calculated using a Paasche index, the substitution bias is demonstrated by the fact that the official (i.e. calculated) food inflation rate is

1. 40% while the actual food inflation rate is more likely 25%.
2. 25% while the actual food inflation rate is more likely 40%.
3. ‐40% while the actual food inflation rate is more likely ‐25%.
4. ‐25% while the actual food inflation rate is more likely ‐40%.

why is it more likely -25%?

This question definitely brings back information we studied at the start of class. Change is stressful for many people, especially at work. Communication plays a big factor here. What are some ways we can better help employees understand change and why change is needed? How can kindness and understanding play a big role here?

• Full participation points for this topic includes a thorough (150-250 words) response

What is the relationship between information and decisions... bad or good? Think of fun dates versus bad dates, divorces, stock purchases, etc. Acquisition of information is a real cost! Economists call such costs "transaction costs."

1. From the Book: Triangle: the fire that changed america

Describe how the trial unfolded. What was the defense strategy for the factory owners? What was the trial outcome?

Explain how the expected rate of return and the risk of an individual asset are measured.

Draw a neatly labelled LRAC curve with at least 3 SRAC curves contained within it and explain how LRAC is used as an output planning mechanism for how much a firm should produce.