The market demand function is Q = 7000 - 1000p

Each firm has a marginal cost of m = $0.16 Firm 1, the leader, acts before Firm 2, the follower. Solve for the Stackelberg-Nash equilibrium​ quantities, prices, and profits. Compare your solution to the​ Cournot-Nash equilibrium.

The​ Stackelberg-Nash equilibrium quantities are:

q1 = _______ units and q2 = ________ units.

The​ Stackelberg-Nash equilibrium price is:

Profits for firm 1 is:

Profits for firm 2 is:

The Cournot-Nash equilibrium price is:

Profits for Firm 1 is:

Profits for Firm 2 is:

According to the Solow model of growth, growth, in the long run (the steady-state), determine only by growth in technology. However, in the Solow model, there is nothing about how technology determined.

1. What factors do you think might affect technology in the long run?

2. Justify your answer and explain the implications to the growth in the long run.

1. This question is about trade policy.

1. List and briefly explain two distinct reasons that a country might want to have positive tariffs on foreign goods.

2. Given that there are many reasons why governments might be motivated to have significant tariffs on foreign goods, why do we have so many trade agreements to limit them?

suppose that companies located in Italy can produce 40,000 ton of Spaghetti Noodles for each year of labor they employ and, also using a year of labor, can produce 4 units of machinery. Suppose companies in Japan produce, with the same amount of labor 30,000 ton of Spaghetti Noodles and 6 units of machinery.

1. Which trade theory can best demonstrate the benefits of trade in this example and explain?
2. Explain whether each county can specialize in production of one product or not and determine which product to specialize.

c. Illustrate the amount of total production and consumption (combined both countries) before and after specialization and production, suppose that the total production after specialization will be divided equally between the two countries for consumption

1. This question is about the IS-LM-FX model. Assume Home and Foreign are in an initial equilibrium with a fixed exchange rate. Then the Home government decides to lower government spending, G.

2. 1. Describe the initial impact of this policy on the Home nominal interest rate, exchange rate, money supply and real output, holding Foreign interest rates and real output constant. You do not need to provide the graph in your solution, but you may find it useful to draw for yourself. (2 pts)

1. 2. Now describe the impact of Home’s policy on Foreign’s nominal interest rate, money supply and real output, taking as given the changes in Home’s variables you found in part a) as given. (1 pt)

2. 3. Now suppose that Home has decided that Home’s G must fall, but Home reaches out to Foreign to coordinate a monetary policy response. Describe a joint monetary policy that can (at least partially) stabilize both Home and Foreign output without sacrificing the fixed exchange rate. (1 pt)

Please write your thoughts about economic policy and results implemented between 1950-1960 years in Turkey?

which of the following statements is (are) correct?
(x) During the early 1960s, inflation was about 1 to 3 percent in the United States, compared to about 4 to
6 percent in the late 1960s and early 1970s.
(y) In 1980, the U.S. unemployment rate was about 7 percent and inflation was above 8 percent at the
same time.
(z) In the United States, the inflation rate has been consistently below 4 percent during the period from
2000 to 2015.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

10. Many economists during the 1960s believed the implications of the Phillips curve, which
A. indicated that low unemployment was associated with high inflation and high unemployment was
associated with low inflation.
B. offered policymakers a menu of possible economic outcomes from which to choose and the choice for
expansionary policy would lead to inflationary pressure but reduced unemployment.
C. indicated that there was upward pressure on wages and prices when unemployment was high.
D. All of the above are correct.
E. A and B, only

11. Which of the following would a student of economics expect if government policy had moved the economy
up along a given short-run Phillips curve?
A. Roscoe reads in the newspaper that the central bank had been increasing the purchase of bonds.
B. Bernadette loses her job because the factory shut down due to declining economic conditions.
C. Jasmine’s nominal wage falls because the manager, filled with jealousy, is stealing her tips.
D. Tim the “tool guy” cuts prices at his hardware store because of falling sales.
E. Both B and D

What do studies of conditional convergence find and how do their findings argue in favor of the Solow model(s) and against the Harrod-Domar model?

Question 02: Game theory is the study of multi- player decision making in situation where the choices of each player may affect the pay-offs received by other players. Arrange how many types you can categorized Game Theory. ( 10 Marks)

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Note: Plagiarism is strictly prohibited please do not copy paste from internet

Two types of consumers (boaters and non-boaters) share a community on the seaside. Boating accidents can be reduced by lighthouse services. The boaters combined inverse demand for the lighthouse is P = 60 − 6Q, and the non-boaters combined inverse demand is P = 20 − 2Q. The cost of providing lighthouse services to the community is TC = Q².

a) Briefly explain why lighthouse services can be considered a public good.

b) Find the optimal provision of lighthouse services (use Samuelson condition).

c) Suppose that no government provides lighthouses. The boaters decide to produce lighthouse services on their own. How much would they produce?

d) Suppose the boaters produce the amount in your answer to part c), and then ask the non-boaters to contribute remainder to get the optimal amount you found in part b). What would the non-boaters say?

Q2: Suppose a US investor has $4000 to invest and can choose either a US investment paying 2% or a foreign investment paying 4%, where e is currently 1.14 and the investor can lock in e in one year equal to 1.16.

Q2a- How much will the US investment be worth after a year?

q2b- How much foreign currency can investor get now?

Q2c- How much foreign currency will investor get after a year?

Q2d-How much (in dollars) will the foreign investment be worth after a year?

Q2e-  Would investor prefer to invest?A- Domestic B- Foreign

Q3: Suppose a US investor has $8000 to invest and can choose either a US investment paying 3% or a foreign investment paying 4%, where e is currently 77 and the   investor can lock in e in one year equal to 78

Q3a- How much will the US investment be worth after a year?

Q3b- How much (in dollars) will the foreign investment be worth after a year?

Q3c- Would investor prefer to invest? domestic or foreign

Q4: Suppose a US investor has $12,000 to invest and can choose either a US investment paying 2% or a foreign investment paying 4%, where e is currently 12.

Q4a- How much will the US investment be worth after a year?

Q4b- What future e would leave the investor indifferent between investing at home or abroad?

Essay question (1).

1. (10) We discussed R&D (research and development) as a driver of productivity growth. In that context, we saw that intellectual property rights protection often is set to balance ex ante and ex post efficiency.

a. Describe what is meant by ex ante and ex post efficiency in this context. How do the two perspectives on efficiency differ?

b. What type of intellectual property rights protection is argued for from the ex ante efficiency perspective? From the ex post efficiency perspective? Why?

c. How does developed countries’ intellectual property rights protection typically seek to balance these two efficiency considerations?

d. Which perspective on efficiency, ex ante or ex post, is a developed country likely to stress in international negotations? A developing country? Why?