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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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?

What do studies of conditional convergence seek to understand, and how do they test whether conditional convergence holds?

In a two-country Classical model of trade with many commodities, briefly explain what would happen to the structure of trade in each of the following cases:

(a) an increase in wages in one country
(b) a change in the exchange rate
(c) an improvement in productivity (lowering of the labor requirements/product) in one
country
(d) an increase in transportation costs.

1. Two types of customers make up the market for Armoyas. There are 80 type A customers, each of whom is willing to pay up to $10 for an Armoya. There are 40 type B customers, each willing to pay up to $8 for an Armoya. No customer wishes to buy more than a single Armoya. The monopolist cannot differentiate between the types of customer. The average and marginal cost of production is constant at $6/Armoya.
   
2. 1. What is the selling price of the good, and how much profit does the monopolist make?
      
   2. The monopolist is offered the opportunity to advertise Armoyas at a cost of $80. The advertisement is predicted to attract another 100 type B customers. Will the advertisement be placed? What is the selling price of the good, and how much profit does the monopolist make?
      
   3. Suppose the advertisement attracts no new customers, but raises the price all existing customers are willing to pay by $1. Will the advertisement be placed? What is the selling price of the good, and how much profit does the monopolist make?

1. Which internal condition forced countries to accumulate debt throughout the 1970s and be even more exposed to exchange rate fluctuations?

2. Show how short-run policies that reduce unemployment can lead to inflation in the long run. Similarly, show how populism may drive governments to take advantage of temporary low unemployment rates at the expense of permanent higher price levels (Use AD, SRAS, and LRAS framework.)

3. Why does debt monetization may have drastic effects on the money supply?

4. Why does debt monetization may have drastic effects on the money supply?

An organization faces several internal and external risks in economic decision, such as high competition, failure of technology, labor unrest, inflation, recession, and change in government laws.Therefore, most of the business decisions of an organization are made under the conditions of risk and uncertainty.An organization can lessen the adverse effects of risks by determining the demand or sales prospects for its products and services in future. Demand forecasting is a systematic process that involves anticipating the demand for the product and services of an organization in future under a set of uncontrollable and competitive forces.

Question 01: In your opinion, explain with examples how Economic Decision analysis is important in Demand Forecasting and cost

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QUESTION 1

During the past century the average growth rate of U.S. real GDP per person is 2% per year. It implies that it doubled, on average, about every

Select one:

a. 100 years

b. 70 years

c. 35 years

d. 25 years

e. 50 years

QUESTION 2

In the loanable funds market, if the government is running a budget surplus

Select one:

a. it is a supplier of funds as it is taking in more than it is spending

b. it is a demander of funds as it is taking in more than it is spending

c. it is a supplier of funds as it is spending more than it is taking in

d. it is neither be a supplier or demander

e. it is a demander of funds as it is spending more than it is taking in

QUESTION3

What is the effect of diminishing returns to labor on the slope of the aggregate production function (where output is measured on the vertical axis and employment is measured on the horizontal axis)?

Select one:

a. It implies that the slope of the curve increases as the number of workers employed increases

b. It implies that the slope of the curve becomes negative as the number of workers employed increases

c. It implies that the slope of the curve decreases (or becomes flatter) as the number of workers employed increases

d. It keeps the slope the same throughout

e. It has nothing to do with the slope of the aggregate production function

QUESTION4

The supply of loanable funds curve is upward-sloping because a rise in the interest rate

Select one:

a. decreases the opportunity cost of firms' investment spending

b. stimulates the economy

c. decreases the opportunity cost to households’ current consumption

d. increases the opportunity cost to households’ current consumption

e. increases the government's desire to run a budget deficit

SUBJECT : Consumer Behaviour and Marketing Psychology

Create a 10 survey questions that designed to examine why consumers decided to purchase your chosen product (i.e LAPTOP). These questions should inquire about perception, attitudes, motivation, and cultural factors that influence consumer behavior and consequently consumers’ purchasing decisions.

Please note that this survey should not ask participants questions about product or service quality/attributes and customer satisfaction.

In providing the list of ten questions, you must also include theories/concepts that link to each of the questions, and objective/s of the questions.

Tell about relationship between welfare state and pension system model / characteristics

Transition dynamics, more: Explain the following statements:

a) The Solow growth model tells us that poorer countries ought to grow faster than richer countries?

b) If two countries have the same k, the country with the higher investment rate grows faster than the country with a lower investment rate.

c) Statement a) is true if ?̅, ?̅, ??? ?̅ are the same for all countries. It may not be otherwise.

d) The Solow growth model implies convergence in GDP per capita over time. This holds for some groups of countries, but not all.

Solow growth model: steady state. What does it mean for the economy to be in the steady state? How is the steady state determined? How does steady-state output per person depend upon the investment and depreciation rates? Explain why an increase in the investment rate raises steady-state y. What are the effects of a rise in TFP or a fall in the rate of depreciation on steady-state y?

The widget industry is comprised of six firms of varying sizes. Firm 1 has 35 percent of the market. Firm 2 has 25 percent, and the remaining firms have 10 percent each. What is the Herfindahl-Hirschman index for the widget industry? Explain and show your work. (4) Based on the U.S. Department of Justice merger guidelines described in the text, do you think the Justice Department would be likely to block a merger between firms 5 and 6? Explain and show your work.