5)

a) Most policies that target inequality either target it at the low end of the income distribution by trying to increase wages of low-income workers, or at the high end of the income distribution by limiting wages of high-income workers. List a few potential policies of each type.

b) In order to better understand how sensitive inequality measures are to the choice of measure, provide a Lorenz curve of an economy with a 90-10 wage gap that is essentially zero but for which the Gini coefficient is close to 1.

Consider a firm which produces according to the following production function by using labor and capital:

f(l,k) = k^{1/4 / 1/2}

(a) Solve the cost minimization problem of this firm for the given wage rate, w and the rental rate of capital,v.

(b) Derive the cost function of the firm.

(c) Solve the profit maximization of the firm for a given price p, and derive the supply function.

(d) Derive the profit function of the firm.

(e) Suppose demand for this good is given by the following relation: p = 272−2q

Now, solve for the market equilibrium price level (where demand equals supply) if w = 1 and v = 2. (f) Decide whether the production function exhibits constant, increasing or decreasing returns to scale.

State whether the following represent an injection into the circular flow of income or a withdrawal from it. You have to assume that “other things remain unchanged” (ceteris paribus)

a)         a cut in taxes
b)         BAe Systems (a defence contractor) receives a large order from abroad
c)         central government spending on higher education is cut
d)         retirement pensions are increased

2. Think of a business with which you are somewhat familiar. For that business:

A. What are the fixed costs?

B. What are the variable costs?

C. What are the explicit costs?

D. What are the implicit costs?

The following numbers will be estimates (I'm not asking you to do any research; Begin by entering possible numbers for the fixed costs and variable costs for each level of output. Then calculate total cost, marginal cost and average cost. I just want you to have practice calculating the various costs.)

Complete this table

E. Do your average total costs show economies of scale or diseconomies scale? Why?

1) What effect will the following have on the demand for UK-produced goods and services ceteris paribus?

a) the Chancellor of the Exchequer, George Osborne increases taxes
b) there is an increase in interest rates
c) there is an increase in interest rates in Germany
d) additional spending on the National Health Service to reduce waiting lists
e) reduced spending on Child Benefit
f) Samsung builds a new factory in Scotland

This assessment is designed to apply the knowledge and skills developed by students in evaluating the role of systems thinking in global and local sustainability challenges. You have been assigned a case study on the LMS, and must answer the following questions in relation to the case:

Using the Iceberg model, explain if and how systems thinking might be useful in addressing the wickedness of the problem. (500 words).

The city of Selma (like most other cities) contracts with a single garbage collection firm, Alamo Waste Inc., which has been given an exclusive franchise to pick up trash in the city. However, Mr. Foo L. Noone has proposed an alternative scheme. He suggests that the city government should divide the city into several, much smaller areas. Then it should allow numerous small companies that would like to get into the business of collecting trash to competitively bid for garbage collection in these areas. The government would then allow the lowest bidder to service the area.   

      Suppose that the city government has estimated the price residents are willing to pay for various numbers of garbage collections per month and the total costs per resident as shown in the following table.

1. Complete the above table.

2. How much are the fixed costs per month of garbage collection per resident in any given        area?

C.   Given that the current garbage collection firm has a monopoly what is the current number of collections per resident and the price charged residents for each collection? What is the economic profit received from each resident by the monopoly firm. Show your work.

D. If competitive bidding were allowed and a competitive market for garbage collection services developed, what would be the number of collections per month and the price charged per resident per collection? What is the economic profit received from each resident by the competitive firms?

E.   Draw an appropriate graph of your solutions to parts B and C and insert your numbers onto the graph. Based on the above analysis should the city government implement Mr. Noone's proposal? Briefly explain your answer.

7. Research Questions Choose one of the questions below and write a short essay. No longer than 500 words.

1. Why has income inequality increased over time in emerging economies (China, Russia, etc.) What are some of the explanations for this increase?

2. Has intergenerational mobility increased or decreased over time within advanced economies?

The Economic Problem is a fundamental problem of Economics

Write an 800 words essay about this.

Identify the key concepts relevant to answering the question

Links these concepts together and logically to make an argument that runs through the whole essay.

•             State the main theoretical concepts - Definitions ( Expect min 4 max of 5)
•             Explain briefly how each theoretical concept defined works           
•             Illustrate the theory – for the main concepts draw a Graphs or a Diagram
•             Use examples from real world
•             Evaluation - Do these theories always works in real world

Suppose that the world price for a good is 50, and the domestic demand and supply curves are given by the following equations:

D^X: P^D=100-4Q^D S^X: P^S=10+6Q^S

1. How much is consumed? How much is produced domestically? What are the values of producer and consumer surplus?
2. If a 5% import tariff is imposed, by how much do consumption and domestic production change? What is the change in consumer and producer surplus? How much revenue does the government earn from the tariff?
3. What is the net national cost of the tariff? Show your results through a graphical representation.

The Economic Problem is a fundamental problem of Economics

Write an 800 words essay about this.

Identify the key concepts relevant to answering the question

Links these concepts together and logically to make an argument that runs through the whole essay.

•             State the main theoretical concepts - Definitions ( Expect min 4 max of 5)
•             Explain briefly how each theoretical concept defined works           
•             Illustrate the theory – for the main concepts draw a Graphs or a Diagram
•             Use examples from real world
•             Evaluation - Do these theories always works in real world

Answer the following three questions. You can use any reference to write your answers (e.g., textbook, articles, internet web pages, etc.). However, you have to use your own words. No Cheating. No plagiarism.

1. Your boss told you that he wants to put you on charge of the opening ceremony for company new plant in Jeddah. He gives you the authority to choose your team members and to make all necessary decisions. The ceremony will be held on October 30th. Explain in details how are you going to manage your team throughout the assignment.

2. One day you came back home to find your older brother setting there. You asked him: “Why did you come early from work?” He replied: ”I did not go to work today.” You noticed that he was frustrated and nervous. Obviously, his job satisfaction is low. Using what you have learned from this course, explain in details what are the possible reasons for his dissatisfaction.

3. You have decided to become the president of the student club at the college. Based on what you have learned from the topics of leadership, power & politics, and conflict & negotiation, explain in details how you are going to practice your leadership role as the club president.

The length of your answers shall not exceed 6 pages (2 pages for each question).  

The Economic Problem is a fundamental problem of Economics

Write an 800 words essay about this.

Identify the key concepts relevant to answering the question

Links these concepts together and logically to make an argument that runs through the whole essay.

•             State the main theoretical concepts - Definitions ( Expect min 4 max of 5)
•             Explain briefly how each theoretical concept defined works           
•             Illustrate the theory – for the main concepts draw a Graphs or a Diagram
•             Use examples from real world
•             Evaluation - Do these theories always works in real world

Give 3 examples of situations that describe why the relationship between social, economic and ecological aspects are important to achieve a sustainable development