3. (a) The income effect of a wage rate increase will labor supply, and the substitution effect of a wage rate increase will labor supply.

A. increase B. decrease C. not change

Therefore, the total effect of a wage rate increase on labor supply is .

A. positive B. negative C. ambiguous

(b) Increasing the overtime wage rate is often considered as an effective way to increase employees working time during a relatively short period, such as one week. Explain the reason using consumer choice tools, i.e., budget lines and indifference curves.

Survey a 3 of your peers/family members/coworkers about what features of a website they feel are most important when shopping online.

• Who are the people you interviewed and what are their demographics?
• What features did each of them list?
• How are these features similar to those you seek in a website when you purchase products online?

6. Team A and Team B are competing in the following game: There are 25 flags planted on the beach. On its turn a team may take 1, 2, 3, or 4 flags. The team that takes the last flag wins. Team A chooses first. You are the captain of Team B. Using backward induction, devise and explain a strategy that guarantees your team will win.

What is the difference between automatic stabilizers and discretionary fiscal policy?

1. Your firm produces in a competitive market which sells its product, q, for $240 per unit. Hourly variable costs are 20q² while overhead costs consist of $50 per hour to rent its office space, $50 per hour for advertising, $390 per hour for equipment rental and $10 per hour in attorney fees. All overhead costs are fixed but avoidable.

Question: Your firm wants to know its long term prospects. What will be the price and quantity charged in the market long run? Explain this result and then graph the AC, MC, MR, AR and firm supply curve.

Two business sell an identical product for P=20.

Business 1 uses a process with a cost curve of TC = 10000 + x.

Business 2 uses a process with a cost curve of TC = 2000 + 2x.

Which business is likely to have a higher DOL?

Select one:

a. Business 1, because it has a higher contribution margin and higher fixed costs

b. Business 1, because it has a lower contribution margin and lower fixed costs

c. Business 2, because it has a higher contribution margin and higher fixed costs

d. Business 2, because it has a lower contribution margin and lower fixed costs

Fill in the blanks to make the following statements correct.

a. In the long​ run, total output is determined only by ▼ (potential output or actual output). In the long​ run, aggregate demand determines the ▼ (price level or output level).

b. Permanent increases in real GDP are possible only if ▼ (potential output or actual output) is increasing.

c. Suppose illiteracy in Canada were​ eliminated, and the school dropout rate was reduced to zero. The effect would be a permanent▼(decrease or increase) in productivity and ▼ (a decrease or an increase) in potential output.

d. A reduction in corporate income tax is likely to make▼ (net exports or investment or consumption) more attractive and thus shift the ▼(aggregate supply or aggregate demand) curve to the right. The result is ▼(an increase or a decrease) in the​ short-run level of real GDP. In the long​ run, the greater rate of ▼ (net exports or consumption or investment) by firms will lead to a greater level of ▼(potential GDP or actual GDP).

2. Why is cost-minimization analysis most likely to be useful for managers? ( NO PLAGIARISM PLEASE , 200 WORDS ESSAY )

Why have economic analyses of clinical and administrative innovations become more important? ( NO PLAGIARISM PLEASE ; 150 WORDS ESSAY PLEASE)

2. Assume that Susan deposits $3000 of cash into bank A and the reserve requirement is 10%.

a. Complete a simple T-account for bank A showing this deposit and asume that bank A lends out its excess reserves to Bill.

b. Bill uses the entire loan to buy groceries at Rouses Supermarket and Rouses deposits it in bank B. Suppose bank B lends out all its excess reserves to Maria, and her loan ends up in bank C. Fill in the T-accounts for bank B and bank C.

c. Assuming that this chain reaction continues to happen until the money is exhausted, how much total deposits would have been created from Susan’s initial deposit?

Utilizing the market for reserves and assuming that initially the federal funds rate is 0.5 percentage point below the discount rate but 0.5 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 0.3 percent

b. Show what would happen to the federal funds rate if the FED increased the interest rate paid on reserves by 0.75 percent

Suppose that, in the market for litres petrol, demand is given by P = 5 – 0.3Q, and supply is given by P = 1 + 0.1Q.

Further, suppose that the government provides a $1 per litre subsidy for petrol.

A. Calculate the effect of the subsidy on the equilibrium price and quantity.

B. Calculate the change in producer surplus and consumer surplus that result from the provision of the subsidy.

C. Does total surplus to everyone in the economy increase or decrease as a result of the subsidy? Explain why and calculate the amount of the change.

Section 2 Business Application in the EU

4. Discuss the positive and negative effects on consumer markets of EU market Competition Policy. Please use examples to support your response.

5. B+C Motorcycles are based in the UK looking to enter the European markets for the first time. Advise the company on the research information and methods that they should undertake in order to establish which country target market is most attractive to them.

6. Discuss the impact of robots on the millennial worker and the repercussions on EU Migration.

1. There are two firms, A and B producing differentiated products. Their demand curves are:

_{qA=100-2PA+3PB}

_{qB=120-2PB+2PA}

and both have MC=5. Note that demand curves are not symmetric. Assuming that firms are engaged in Bertrand price competition:

(a)Write down the profit function of firm A and find its price response function

Hint:
_{πA=(PA-5)(100-2PA+3PB)}

(b) Write down the profit function of firm B and find its price response function

(c) Find equilibrium prices P_A and P_B; equilibrium quantities q_A and q_B; and profits for firms A and B.