2. Consider a firm with the following short run costs:

1. Calculate the MC and AVC for each level of production (quantity).
2. How much would the firm produce if it could sell its product for $5? For $7?, for $10?
3. Explain your answers.
4. Assuming that its fixed cost is $3, calculate the firm’s profit at each of the production levels determined in part c.

what would happen to the interest rate price level, GDP and unemployment if credit cards become less available?

3. Describe the governmental subsidies to real estate, and their impact on the economy.

Suppose you are running an online marketplace, and you want to reduce the number of returns your customers make so that you can reduce your shipping costs. How might you use the following concepts to encourage your customers to make purchases they don’t regret? Adaptation, projection bias, peak-end evaluation, pre-commitment.

4. Assume the full employment level of national income (YF ) is at $280 billion. In order to reach YF from the existing equilibrium income level in ( 3 ) above, calculate the required changes, ceteris paribus, in a) Government spending ( G ) b) Autonomous taxes ( Ta ) c) The tax rate (t)

Please look at my previous questions. Thanks!

1.   Assume a private, closed economy where Y = C + I, and C = 10 + 0.9Y and   I = 15. (Values in $ billions.)

1. Solve algebraically for the equilibrium level of national income.
2. Calculate the value of the multiplier.  
3. Solve graphically for the equilibrium income by constructing an accurate

i) The 45 degree graph

ii) savings/investment graph   

2. Now add the government sector to the model so that Y = C + I + G where C = 10 + 0.9[Y – T] , I = 15, G = 25, T = Ta + tY = 5 + 0.10Y.  

a)         Solve for the new equilibrium level of national income.

b)         Calculate the size of the

i) new multiplier

                        ii) budget balance

3. Now add the foreign sector to the model so that Y = C + I + G + [ X - M ] where the new variables are: X = Xa = 40, and M = Ma + mY = 5 + 0.11Y.    The other variables remain the same as in question 2.

1. Solve for the new equilibrium level of national income.
2. Calculate the size of the

i)   New multiplier

            ii) Trade balance  

            iii) Budget balance

Why is taxonomy important and useful? Include a brief description of the three Cs.

Briefly explain the " consumption puzzle" . What solutions have been proposed to solve it and to what extent they have been successful ?. DISCUSS.

With examples, discuss the effect of protectionism trade policies on the socio-economic development of developing countries.

Describe what it means to say a strategic game played with 2 players is in a Nash equilibrium. Then, describe the standard trust game, and identify the Nash equilibrium. Explain why this equilibrium is a Nash Equilibrium. Finally, explain why people actually playing this game might not play as the Nash Equilibrium predicts.

Supply of good A is perfectly inelastic. Suppose a tax is levied on buyers. Draw a graph to show the impacts on the market for good A. Your graph should indicate the CS, PS, tax revenue and DWL after tax.

On December 8, 1986, because of a severe business downturn, Ingram Manufacturing Company laid off 61 bargaining unit employees at plant no. 28. Then on June 12, 1987, the company subcontracted with Monroe Manufacturing Company for 49 wheels. Monroe Manufacturing Company was to fit, weld and machine the core of the wheel according to Ingram Manufacturing Company’s design. The local union representing workers at plant no. 28 has decided to file a grievance, alleging that the Company has violated the collective bargaining agreement by subcontracting work while employees are on layoff.

1. To settle this matter, the union and Ingram Manufacturing Company are deciding whether to hire a permanent arbitrator to handle this grievance and future grievances, or an ad hoc arbitrator. Evaluate the merits of each kind of arbitrator.

Critically access the theoretical propositions of the Solow neo-classical model of growth. How does endogenous growth model help to address some of the weaknesses of the Solow model? Illustrate the implications of technical advances and saving rates increase on growth according to both of these approaches.50 marks

Based on the current pandemic COVID-19, write a scenario forecast of the tourism sector a year from now (2021)?