1. Suppose that the federal government has identified a recessionary gap of $250 billion. If they decide to use fiscal policy, what type of fiscal policy should they adopt? Calculate both of their options (and be specific about direction) considering that the MPC = 0.75.

1.The United States still participates in the gold standard since it eliminates exchange rate risk between the dollar and other foreign currencies.

True or False

2.The peso appreciated by 4% from the Eurozone point of view. What is the percentage appreciation/depreciation of the euro from the Mexican point of view? Enter your answer in decimal format and round any intermediate steps and for final answer to four decimals (EX: .XXXX).

Suppose the federal government increases taxes by $750 million. By how much should GDP change if the MPC = 0.90? Use an AS/AD model to show this impact on the economy.

TURKISH ECONOMY

Explain the significance of the 2001 crisis according to Öniş.

Use the following information to work Problems (a) and (b). Show all your workings.

Sara’s income is $12 a week. The price of popcorn rises from $3 to $6 a bag, and the price of smoothie is unchanged at $3.

a ) How does the rise in the price of popcorn affect the relative price of a smoothie in terms of popcorn? What is the slope of Sara’s new budget line if it is drawn with smoothies on the X-axis?

Do you think economic inequality explicitly or implicitly supports sexism and racism? If not, why not? If yes, why? Discuss

QD= 8000-2PX+0.4I+2PY-4PZ

A - What are the intercepts and slope of your demand curve? price intercept and the quantity intercept and the slope

B - the price of good X is $100, what is the quantity demanded?

C - Now suppose the price of good Y rises to $150. What would happen to your demand curve? What are the price intercept, quantity intercept and slope?

Select two countries (excluding the United States) and prepare a short report describing their basic Internet infrastructure. Are they public or commercial? How and where do they connect to backbones within the United States?

write what you think are the key components of the culture in the United States that someone visiting from another country for business should be aware of.

1. Josie has a fixed budget of $20, and she spends it all on two goods, tomatoes and potatoes. The price of tomatoes is $2 per unit, and the price of potatoes is $4 per unit. The table below shows the total benefit, measured in dollars, Martha receives from the consumption of each good.

Quantity of Tomatoes	Total Benefit from Tomatoes	Quantity of Potatoes	Total Benefit from Potatoes
0	$0	0	$0
1	$10	1	$16
2	$18	2	$28
3	$24	3	$36
4	$28	4	$40
5	$30	5	$41

1. What is Josie’s marginal benefit of the fourth unit of tomatoes? The second unit of potatoes?
2. Calculate the total benefit is Josie consumes 3 unit of tomatoes and 1 unit of potato?
3. If Josie consumes 2 unit of tomatoes and 4 units of potatoes, is this a utility maximizing combination?
4. What is Josie’s optimal consumption of tomatoes and potatoes given her budget?

1) Considering that Germany has a huge trade surplus, who has likely gained from having trade as opposed to international trade being banned?

a. Domestic consumers

b. Domestic producers

c. Government

d. Domestic consumers and domestic producers

2) Suppose we have the country of Carrieopolis with the following prices and quantities:

                   P of Laptops   P of Tablets   # of Laptops   # of Tablets

2017 $100               $100 200 200

2018 $120               $120 230 230

2019 $200              $200 350 350

If the base year for prices is 2017, what is the CPI for the year 2018?

a. 60

b. 91

c. 100

d. 120

3) Using the information from the previous problem, what is the annual real GDP growth for 2019?

a. 10%

b. 30.4%

c. 52.2%

d. 75%

1. Cindy has $70 a month to spend on sport activities, and she can spend as much time as she likes playing golf and tennis. The price of an hour of golf is $20, and the price of an hour of tennis is $10. The table shows Cindy’s marginal utility from each sport.

Hours per month	Marginal Utility from Golf	Marginal Utility from Tennis
1	60	40
2	50	36
3	40	30
4	30	10
5	20	5
6	10	2
7	6	1

1. If Cindy spends all her money playing golf, how many hours of golf can she afford? What will be her total utility?
2. If Cindy spends all her money playing tennis, how many hours of tennis can she afford? What will be her total utility?
3. What are the marginal utilities per dollar from playing golf and tennis for the various hours per month played?
4. How many hours of golf and tennis should Cindy play to maximize her utility given her budget?
5. Explain why, if Cindy equalized the marginal utility per hour of golf and tennis, she would not maximize her utility?
6. Cindy’s tennis club raises its price of an hour of tennis from $10 to $15, other things remaining the same, how many hours does Cindy now spend playing golf and tennis that maximizes her utility? Are there any left over money?
7. Cindy loses her math tutoring job and the amount she has to spend on golf and tennis falls from $70 to $40 a month. With the price of an hour of golf at $20 and of tennis at $10, calculate the change in the hours she spends playing golf. For Cindy, is golf and tennis a normal good or an inferior good?

Toll lanes on a section of the​ I-40 freeway are being considered in order to reduce traffic congestion and travel times. Since this is a government​ project, the​ B-C ratio method must be applied in the evaluation. The following are cost and other​ estimates:

Construction costs​ = ​$17,300,000

Operating and maintenance costs​ = ​$532,000 per year

Projected service life​ = 30 years

Savings in travel times and revenues generated from the tolls​ = ​$5,244,000 in the first year of operation and projected to increase by 2.75​% per year due to the projected annual increase in traffic. In​ addition, environmental analysis estimates that the project will result in increased noise and air pollution that will cause an additional societal health cost of ​$644,000 the first year and is also projected to increase at 2.75​% per year.

Assuming zero market​ (salvage) value at the end of 30 years and a MARR of 10​%per​ year, should the toll lanes be​constructed?

The conventional​ benefit-cost ratio of the project with PW is______​(Round to two decimal​ places.)

According to the​ B-C ratio​ method, the toll lanes should

A.not be constructed

B. be constructed

1. You are asked to price options on KYC stock. KYC’s stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. KYC does not pay dividend. The risk free rate is 5% (EAR), and the current stock price of KYC is $100.

1. Price a European put option on KYC with maturity of 2 years and a strike price of 100.
2. Given the price of the put option that you calculated in a), specify the ranges of KYC share price at the option’s maturity date for which you will be making a net profit.
3. What is the price of the Call option at the same strike price?
4. Suppose you expect the price of KYC stock to have little variance in the future. How would you design a strategy (using options) to take advantage of this? Show your strategy explicitly. What are the payoffs of your strategy? What is the range in which you will make profits?

The operations manager at an electronics company believes that the time required for workers to build a circuit board is not necessarily proportional to the number of parts that go onto the board. She has collected data on the time (in minutes) it takes a worker to build a board and the number of parts installed. The data is in a worksheet names Circuits.   Data-1.xlsx

Time	Parts
30.8	62
9.8	32
61.4	96
9.0	30
25.8	53
56.7	94
29.5	59
25.4	53
51.4	87
14.9	41
35.6	71
17.2	43
40.2	73
6.5	25
8.0	28
55.2	92
21.9	51
22.2	51
14.5	41
6.0	24
49.0	85
9.6	32
30.4	61
17.5	43
29.8	60

1. Estimate a regression line to predict time based on the number of parts.  What is the Coefficient of Determination of the simple regression? (enter as a decimal)

3. What is the standard error of the estimate of the simple regression?

4. What is the predicted time to build a circuit board with 50 parts?

5. Estimate a quadratic regression line to predict time based on the number of parts and the number of parts squared. What is the Coefficient of Determination of the quadratic model? (enter as a decimal)

6.What is the standard error of the estimate of the quadratic model?

7.

Which model is better, the simple regression or the quadratic?

Group of answer choices

a.Simple because the MSR is larger.

b. Simple because the t-statistic of Parts is much higher.

c.Quadratic because standard error is lower and adj-R² is higher.

d. Quadratic because it has two variables instead of one.