17. Suppose that 1,000 people are interested in attending Elvis Land. Once a person arrives at Elvis Land, his or her inverse demand for rides is given by p(y) = 100 – 3y, where p is the price per ride. The cost function for rides in Elvis Land is c(y) = 20y + 0.5y2. Elvis Land charges a profit-maximizing two-part tariff, with one price for admission to Elvis Land and another price per ride for those who get in. What is the price for admission to Elvis Land?

- Answer: 40

18. Suppose that 1,000 people are interested in attending Elvis Land. Once a person arrives at Elvis Land, his or her inverse demand for rides is given by p(y) = 100 – 3y, where p is the price per ride. The cost function for rides in Elvis Land is c(y) = 20y + 0.5y2. Elvis Land charges a profit-maximizing two-part tariff, with one price for admission to Elvis Land and another price per ride for those who get in. What is the price per ride for those who get in?

- Answer: 600

19. Suppose that 1,000 people are interested in attending Elvis Land. Once a person arrives at Elvis Land, his or her inverse demand for rides is given by p(y) = 100 – 3y, where p is the price per ride. The cost function for rides in Elvis Land is c(y) = 20y + 0.5y2. Elvis Land charges a profit-maximizing two-part tariff, with one price for admission to Elvis Land and another price per ride for those who get in. What is the total monopolistic profit?

3. Utilizing T-accounts for all relevant actors, answer the following questions,

a. If the FED buys a $10,000 treasury bill from Carlos Slim and he deposits the money in his bank, what happens to reserves and the monetary base?

b. If instead Carlos Slim deposits $5,000 in his bank and cashes in the remaining $5,000, what happens to reserves and the monetary base?

4. Utilizing the market for reserves and assuming that initially the federal funds rate is 1 percentage point below the discount rate but 1 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 0.5 percent

b. Show what would happen to the federal funds rate if the FED increased the interest rate paid on reserves by 0.5 percent

Jilai earns $12 per hour for up to 40 hours of work each week. He is paid $18 for every hour in excess of 40. Jilai faces a 20 percent tax rate on his labor earnings. Regardless of how much he works, he also receives $200 in tax-free dividends from prior investments each week. There are 110 non-sleeping hours in the week. graph jilai.

Economics

1 What are the differences between a free trade area, customs union, common market, and economic union? Do any RTAs fit completely within one of these models of integration?

2 In what ways is the EU a unique RTA? What are some of the problems confronting the EU today?

In the open economy macroeconomic model, which of the following is included in the supply of U.S. dollars in the market for foreign-currency?
(x) Nebraska Life, a U.S. life insurance company, wants to buy a Japanese government bond.
(y) ABC Securities, a U.S. stock brokerage, wants to purchase stock issued by a French corporation.
(z) Tony, a U.S. citizen, wants to hold more currency in case of emergencies.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only
E. (x) only

According to the open-economy macroeconomic model, which of the following statements is (are) correct?
(x) In the open-economy macroeconomic model, if for some reason foreign citizens want to purchase more U.S. goods and services at each exchange rate, then the demand for dollars in the market for foreign-currency exchange shifts right.
(y) If foreign citizens want to buy fewer U.S. bonds, then the demand for U.S. dollars in the market for foreign currency exchange will shift to the right
(z) If the real exchange rate for the dollar is below the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is less than the quantity demanded and the dollar will appreciate.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

which of the following statements is (are) correct?
(x) A trade policy is a government policy that directly influences the quantity of goods and services that a country imports or exports.
(y) An “import quota”.is a limit on the quantity of a good that can be produced abroad and sold domestically.
(z) A tax on imported goods is called a tariff.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

What factors do you think are important when developing a total cost model? What do you think might be the greatest barriers to developing a total cost of ownership measurement system?

1. what is Bangladesh level of gdp and the growth of gap for at least 10-15 years

2. what is Bangladesh savings ratio, investment and trade ratio.

1. Which of the following statements is (are) correct?
(x) In the open-economy model, the key determinant of net capital outflow is the real interest rate.
(y) When the U.S. real interest rate decreases and is low, owning U.S. assets is less attractive and so U.S. net capital outflow is relatively high.
(z) Ceteris paribus, if the German real interest rate were to increase, German net capital outflow would fall and net capital outflow of other countries would rise.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

In the open economy macroeconomic model of the textbook, which of the following is included in the demand for U.S. dollars in the market for foreign-currency?
(x) A retail outlet in Canada wants to buy computers from a U.S. computer manufacturer.
(y) ABC Securities, a U.S. stock brokerage, wants to purchase stock issued by a French corporation.
(z) A United States bank that has branch offices in Mexico and Canada loans dollars to Tom, a resident of the United States, who wants to purchase a new car that was made in the United States.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only
E. (x) only

Which of the following statements is (are) correct?
(x) If at a given real interest rate desired national saving equals $50 billion, domestic investment equals $40 billion, and net capital outflow equals $20 billion, then at that real interest rate in the loanable funds market there would be a shortage and the real interest rate would rise.
(y) As the real interest rate falls, domestic investment rises and net capital outflow falls.
(z) If the quantity of loanable funds supplied is greater than the quantity demanded, then there is a surplus of loanable funds and the interest rate will fall.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

Suppose that the demand and supply function for ice cream are QdI = 85−4PI +6PP and QsI = 5PI − 5, respectively. Suppose the demand and supply function for pie are QdP = 110 − 5PP + 2PI and QsP = 3PP − 10, respectively. (a) Are pie and ice cream substitutes or complements? (b) Solve for and graph the market-clearing curves for pie and ice cream. (c) Find the general equilibrium prices and levels of consumption of both goods.

1. Why does the short run aggregate supply (SRAS) curve slope upward to the right? What does the upward slope indicate?

2. If the prices of both (a) resources and (b) goods and services increase proportionally will business firms have a greater incentive to expand output? Why or why not?

3. If the price level in the current period is higher than what buyers and sellers anticipated, what will tend to happen to real wages and the level of employment? How will the profit margins of business firms be affected? How will the actual rate of unemployment compare with the natural rate of unemployment? Will the current rate of output be sustainable in the future?

4. Why is an unanticipated increase in the price level likely to expand output in the short run, but not in the long run?

5. if the inflation rate increases and the higher rate is sustained over an extended period of time, what will happen to the nominal interest rate? What will happen to the real interest rate?

6. “When the U.S. dollar appreciates against the Euro, fewer dollars will be required to purchase a Euro.” Is this true? If the dollar appreciates, how will this affect net exports?

7. Can output rates beyond the economy’s long run potential be achieved? Can they be sustained? Why or why not?

8. When the economy is in long-run equilibrium, which of the following will be true?

a. The actual price level will be equal to the price level anticipated by decision makers.

b. The actual unemployment rate will be equal to the natural rate of unemployment.

9. (a) What is the difference between the real interest rate and the money interest rate?

(b) Suppose that you purchased a $5,000 bond that pays 7% interest annually and matures in five years. If the inflation rate in recent years has been steady at 3% annually, what is the estimated real rate of interest? If the inflation rate during the next five years rises to 8%, what real rate of return will you earn?

10. How is a nation’s trade balance related to its net inflow of foreign capital? If the inflow of foreign capital is used to finance the federal deficit, how will the well-being of future generations be affected?

2. Draw a graph on the utility maximization framework for a consumer who faces a decrease in the price of good x if x is inferior.  

2. Suppose that the economy is initially in long-run equilibrium as depicted in the AD-AS model. Suppose politicians believe that the current level of output is too low and encourage the central bank to engage in expansionary monetary policy.

a. (4 points) Discuss two ways in which the Central Bank can try to increase the money supply. Be explicit.

b. (6 points) What are the effects of the expansionary policy in the short run? Show in the appropriate graph(s).

c. (5 points) Which two factors determine the magnitude of the effects in the short-run?

d. (6 points) What are the effects in the long-run, assuming no further shocks to the economy? Show in the appropriate graphs.

e. (4 points) How does this example illustrate monetary neutrality? Explain your answer.

Suppose that the demand for real money balances depends on disposable income. That is, the money demand function is M/P = (Y-T) - k(r+Eπ). Using the IS-LM model, discuss whether this change in the money demand function alters the following:

a. The analysis of changes in government purchases.

b. The analysis of changes in taxes.