Based on your knowledge on income elasticity of demand, normal good and inferior good, discuss the demand for luxury cars and bread (khubs) before February 2020 and after February 2020. Given today’s economic situation, would you advice the government to build more luxury car manufacturing plants or build green houses to produce food?

1. Discuss how each of the following events affects the number of hours the individual would like to work (increase/decrease/unclear/no change). For full credit, your answer must explain why things change using the terminology of labor supply theory. If the effect is theoretically ambiguous explain why. Depending on the question, you may need to discuss income effects, substitution effects, diminishing returns to income, diminishing returns to leisure and/or the labor/leisure tradeoff. (6 pts)
   1. Shogher gets a raise so she makes $25 per hour instead of $20 per hour.
   2. Todd inherits $1,000,000. His wage stays unchanged at $40 per hour.
   3. Vinitha doesn’t work initially because the best wage offer she has received is $15 per hour and she values her leisure time more than that. One day, she gets a wage offer of $25.

it's the Heckscher–Ohlin Model, that's all the info I have. The answer can be general, thank you!

Use the shoe and computer example from the lecture notes, with shoe production using labor intensively and computer production using capital intensively. Examine the long-run impacts following a natural disaster that decreases the foreign country's population on

a) factor prices in the foreign country

b) production in the foreign country

what happens to the rentals on land and capital in the long run?

Your uncle is pleased to hear you are taking macroeconomics; the whole financial crisis of 2008-2009 puzzled him. He was not happy about “bailing” out the banks. He is pretty good with graphs, so do not be afraid to use the IS-MP framework to explain the following:

How does the rapid decline of the housing market and the subprime implosion affect the macroeconomy?

Why the monetary policy was not being effective to stimulate the economy?

And why, pray tell, would we bail out the banks? Aren’t there potential long-run problems with doing this?

Consider a perfectly competitive firm that produces output using a wellbehaved production function y = f(x1,x2). Let the price of output be denoted by p, the price of input 1 be denoted by w1, and the price of input 2 be denoted by w2.
j)  Suppose x2 is fixed at some level x2. Graph the solution to the profit maximization problem where profit is maximized by choosing x1. [Note that this profit maximization problem is the short-run version of the profit maximization problem

(k) Suppose that our hypothetical firm operates in a perfectly competitive industry with free entry and exit. How much profit can the firm expect to make in the long run? Why? Explain your answer.

I need new and unique answers, please. (Use your own words, don't copy and paste), Please Use your keyboard (Don't use handwriting) Thank you..

a. Describe in your own words the concept of market power.

b. Provide an example of a firm exercising its market power.Referring to your example above, answer the following questions:

1. What are the sources of the firm's market power?
2. Can they be sustained over a short run / long run?

c. Answer the question below in your conclusion:

• Why is it hard for a firm to maintain market power over a Long Run?

Describe the Cochrane-Orcutt Iterative procedure to correct for first order autocorrelation in the model Yt = B0 + B1X1 + B2X2 + ut

In this discussion board contribution, your task to think more carefully and applied concerning the Aggregate Demand and Aggregate Supply framework. Suppose that for some reason, there is a fall in Aggregate Demand from a position that a reflected long-run full employment output (the “natural rate of unemployment”).

If this decrease in Aggregate Demand had been anticipated by all market participants, would there be any negative affects on the levels of aggregate output and employment, and why? How would the required adjustments have come about? But suppose that there is an unanticipated increase in Aggregate Demand, what will be the short-run and long run effects – why and through what changes?

In both the anticipated and unanticipated situations, what would happen to the general price level in these processes?

1.    For each of the following pairs of goods, which good is expected to have the more price elastic demand?

[i]    Milk [all brands, grades] or President's Choice Cola [a generic brand of cola]

[ii]   Cell phone usage or matches

[iii] Restaurant meals or food [generally defined]

           [iv] Auto gas during the next 3 months or during the next 3 years

2.    In the United States in 1916, the Ford Motor Company sold 500,000 Model T fords at a price of $440. Henry Ford, the founder of the Ford Motor Company, believed he could increase sales of the Model T by 40,000 cars if he cut the price to $400.

[a] Use the provided information to calculate the anticipated price elasticity of demand [PED] for the Model T Ford.   

[b] Based on your calculation in [a], did Henry Ford believe demand for the Model T was elastic or inelastic?

[c]   Based on your calculation in [a], if Henry Ford wished to increase total revenue from Model T sales, should he have increased or decreased price?

3.     [a] A recent study found that the cross-price elasticity of demand for marijuana and beer is –

               0.63. In light of this result, are marijuana and beer complements or substitutes?

        [b] The income elasticities of demand for movies and clothing have been estimated to be +3.4

               and +0.5, respectively. What do the associated numerical values imply about the items?

4.    Which good do you expect would you expect to have a smaller price elasticity of supply in the short term – baby-sitting services or rental accommodation?

For this discussion, imagine you are Garry Kelly and answer the following:

• What was the best way to utilize the Web site and Internet to attract and sell a varied range of products?
• How should Sears extend and enhance its business-to-business e-commerce initiatives to stay ahead of the pack and beat the competition?
• Could Sears utilize Lands’ End’s technological and operations capabilities to turn around its e-business?

ESSAY ON

Societal, cultural, religious similarities and differences between the United States and Ireland

"Compare and contrast the output and pricing decisions of monopolistically competitive firms with those of perfectly competitive firms."

Your response should be no less than one page long, size 12 font, and double spaced.

Discuss the types of controls that can be used in organizations.

Tesco Exits South Korea

Tesco was founded in 1919 by Jack Cohen (Cohen), who invested his serviceman’s gratuity of £30 in a grocery stall. The first private label product introduced by Cohen was Tesco Tea. The name Tesco was a combination of the initials of the tea supplier TE Stockwell, and the first two letters of Cohen’s name. Tesco opened its first store in 1929 in Edgware, London. In 1947, Tesco Stores (Holdings) Limited was floated on the Stock Exchange with a share price of 25 pence and the first supermarket was opened in 1956 in Maldon, Essex, England. The first superstore was opened in 1968 in Crawley, West Sussex. In the 1960s, Tesco went on an expansion spree and acquired several store chains. The Retail Price Maintenance (RPM) Act in Britain prohibited large retailers from pricing goods below a price agreed upon by the suppliers. To overcome this obstacle to price reduction, Tesco introduced trading stamps. These were given to customers when they purchased products and could be traded for cash or other gifts. RPM was abolished in 1964, and from then on, Tesco was able to offer competitively priced products to its customers in a more direct manner. The first Tesco superstore, with an area of 90,000 square feet, was opened in 1967.

TESCO’S GLOBAL EXPANSION
Tesco’s global expansion began in 1979, when it entered Ireland by acquiring a 51% equity stake in ‘3 Guys stores’. In 1986, Tesco divested itself of the stores after it found that it could not sustain its operations in the country as customers were rejecting the British products that it sold. During the late 1980s and the early 1990s, Tesco examined the options available in the US and European countries after the British government introduced new regulations on ‘out-of-town’ stores. In December 1992, Tesco entered France by acquiring an 85% equity holding in Catteau supermarkets, which operated under the Cedico brand with 72 superstores, 7 hypermarkets, and 24 small stores. However, Tesco failed to sustain itself in the market due to competition from French retailers like Carrefour and Promodès. In 1995, a law was passed in France which prohibited the opening of new large retail stores. Moreover, the company failed to adapt its products to suit local tastes and lost market share. In 1996, in spite of investing an additional £ 300 million in France, sales in the country grew by a mere 1%. In the year 1997, Tesco sold its operations in France to Prom odes.

TESCO IN SOUTH KOREA
In the early 1990s, there was a growing demand from consumers in South Korea for a modern shopping experience owing to rapid economic growth and increasing disposable incomes. The government had adopted protectionist policies and the retail sector was not open for foreign direct investment (FDI). Tesco

entered South Korea in 1999 through a joint venture with Homeplus, a unit of the country’s biggest business group Samsung Corporation (Samsung). In the next few years, Tesco became the most successful international retailer in the country. Its success was attributed to its ability to localize its products and stores to appeal to the South Korean consumers; its operating through local management; and its strong presence through different store formats. South Korea went on to become Tesco’s most successful international business in terms of revenue. As of 2014, it operated d 140 hypermarkets, 609 supermarkets, and 326 convenience stores.

TESCO’S STRATEGIES IN SOUTH KOREA
Immediately after entering into the joint venture, Tesco went about upgrading the store layouts. The stores were modified to resemble department stores, which were spacious and clean. Tesco’s stores in Korea did not resemble its stores in the UK or in other European locations like Hungary, Poland, the Czech Republic, and Ireland.

CHANGES IN THE OPERATING ENVIRONMENT
In October 2012, when Tesco posted its first fall in profits in 20 years, the company also announced that its profits in South Korea would take a £ 100 million hit due to the "retail market development bill” that had been passed by the government in November 2010. However, changes in the operating environment in South Korea due to new laws that were enforced beginning 2010 to protect small retailers and merchants started to impact Tesco and other large retailers. These laws placed restrictions on the locations where supermarkets could be opened. The Distribution Industry Development Act passed in 2012 imposed restrictions on the time for which the stores could remain open and also specified that on two weekends every month the large retail stores should be closed. As most Koreans shopped during the weekends, these restrictions started to impact Tesco, which made losses in 2015. Under the impact of the global recession, the private spending in South Korea fell. Another factor that impacted Tesco in South Korea was its UK business, which was not doing well.

TESCO’S EXIT FROM SOUTH KOREA
After several months of speculation, Tesco sold its South Korean stores to Asian private equity firm MBK Partners for £4.2 billion on September 07, 2015. On September 07, 2015, Tesco PLC (Tesco), a British multinational grocery and general merchandise retailer, announced that it had sold its South Korean business, operated under the name Homeplus, for £4.2 billion to a consortium of companies led by MBK Partners, a South Korean buyout firm. The consortium included Canada Pension Plan Investment Board, Public Sector Pension Investment Board, and Temasek Holdings (Private) Limited.

Case study question
The extract above mentions changes in operating environment in which Tesco functions.

Discuss in this context, the nuances of a Task environment.

Advance Macroeconomic

Please feel free to make use of graphs as you see fit

1.

a. Provide a detailed analysis of the four crucial components of the Classical Model: the labor market, Say’s Law, the loanable funds market and the quantity theory of money.

b. While making use of these four components, provide an explanation of why this model implies that there is no need for any aggregate demand management to maintain full employment. (Please emphasize, in particular, the role played by flexible prices and wages).

2.

a. Provide a detailed analysis of the three crucial components of Keynes’ Model: the consumption function, the determinants of investment demand and the speculative demand for money.

b. Assume that nominal wages are rigid. Use these components to explain why, in this model, the economy can come to rest at an equilibrium with involuntary unemployment.

c. What policy tools can be used to move such an economy to a state of full employment? Provide an analysis of how these tools can achieve this objective.

3.

a. Derive the IS and LM curves. Explain how the IS curve helps address a flaw in the Classical Model. And explain how the LM curve helps address a flaw in Keynes’ Model.

b. Using the IS-LM framework, determine the conditions under which monetary and fiscal policy will be most effective in restoring the economy to a state of full employment.

c. Does the emergence of a state of equilibrium with involuntary unemployment rest on the assumption of rigid nominal wages or does it rest on the existence of speculative demand for money? Use the IS-LM framework to provide an answer to this question.

4.

a. According to the most fundamentalist Keynesians in the 1950s and 1960s, changes in the quantity of money were deemed to have no effect on aggregate nominal income. How did these Keynesians arrive at this conclusion? What does such a view imply regarding the nature of the demand for money?

b. Provide a summary of the main arguments advanced by Friedman “to bring money back,” i.e., in support of the position that changes in the money supply do have a significant impact on aggregate nominal income?

c. According to Friedman money is non-neutral in the short run and neutral in the long run. Explain how he arrives at this conclusion. What are the implications of his argument for the validity of the Phillips Curve?