1. Suppose that at the given distribution of goods individuals A and B have marginal rates of substitution between goods x1 and x2 given by MRSx1,x2A=-4 and MRSx1,x2B=-6 . Further suppose that these two people have strictly convex preferences and ignore corner solutions.

1. Explain using an Edgeworth box whether or not there is a Pareto improving exchange that could be had.
2. Which range of price ratios p1/p2 would induce trade between these two people?

Which of the following items are sold by firms in monopolistic competition in a developed economy such as the U.S? Explain your selection.

• Potato chips
• Television
• Airplane
• Battery
• Rice

Why do Coca-Cola and PepsiCo spend huge amounts on advertising? Do they benefit? Does the consumer benefit? Explain your answer by constructing a game to illustrate the choices Coca-Cola and PepsiCo make.

An increase in the demand for bananas combine with an increase in the supply of bananas will cause the market

Select one:

a. equilibrium price to decrease

b. equilibrium quantity to decrease

c. equilibrium quantity to increase

d. equilibrium price to increase

According to the article, online and third party sellers of hand sanitizer are ___________ their Prices due to the ____________ of hand sanitizer in stores.

Select one:

a. Decreasing : Surplus

b. Decreasing : Shortage

c. Increasing : Surplus

d. Increasing : Shortage

Goods that are both rival and excludable are

Select one:

a. Public Goods

b. Quasi Public Goods

c. Common Property Goods

d. Private Goods

If the price elasticity of demand for hand sanitizer is 0.2 and prices RISE by 60% what percentage will quantity demanded CHANGE by

Select one:

a. -15%

b. -12%

c. -120%

Government are likely to create price ceilings on products to

Select one:

a. protect vulnerable producers

b. to result in equilibrium

c. protect low income consumers

d. to keep the price high

The cost of steel to make motor vehicles has increased and at the same time as the price of public transport has fallen. How will this affect the demand and supply for motor vehicles?

Select one:

a. Demand will increase and Supply will decrease

b. Demand will increase and Supply will increase

c. Demand will decrease and Supply will increase

d. Demand will decrease and Supply will decrease

Suppose that the equilibrium price and equilibrium quantity of new houses both increase. Which of the following could be a cause of this change?

Select one:

a. Both the supply and demand for new houses increased and the supply increased by more than the demand.

b. The demand for new houses increased and the supply did not change

c. Both supply and demand for new houses decreased

d. The supply of new houses decreased and the demand for new houses did not change.

can you write down.

1- the economic effect of the coronavirus on the global economy.

2- and steps to overcome

Refer to the article. The demand for hand sanitizer at the moment would be considered __________ and as Prices rise Total Revenue would ___________

Select one:

a. Inelastic : Increase

b. Elastic : Decrease

c. Inelastic : Decrease

d. Elastic : Increase

Prices of hand sanitiser have increased by 120% and Quantity Supplied has risen by 80%. Therefore the price elasticity of supply is :;

Select one:

a. 1.5 elastic

b. 1.5 inelastic

c. 0.67 Elastic

d. 0.67 Inelastic

The article indicates that both demand and supply of hand sanitizer are rising but the Demand is rising by more. The effect on the market will be

Select one:

a. Price stays the same : Increase in Equilibrium Quantity

b. Increase in Price : Increase in Equilibrium Quantity

c. Increase in Price; Decrease in Equilibrium Quantity

d. Decrease in Price : Increase in Equilibrium Quantity

Markets are inefficient when

Select one:

a. when price reaches equilibrium

b. when the market over produces

c. when all the net benefits are captured

d. demand equals supply

If prices of hand sanitizer have risen by 150% and quantity supplied has increased by 100% calculate and explain the price elasticity of supply.

Select one:

a. PES = 0.67 and Supply is elastic

b. PES = 1.5 and Supply is elastic

c. PES = 0.67 and Supply is inelastic

d. PES = 1.5 and Supply is inelastic

The article mentions that the British Drug store chain, Boots were limiting customers to 2 hand sanitizers per purchase. This is due to the market experiencing a __________ which would normally cause prices to __________

Select one:

a. Surplus : Increase

b. Shortage : Increase

c. Shortage : Decrease

d. Surplus : Decrease

If your income rises by 45% and as a result you increase your quantity demanded for restaurant meals by 60% calculate and interpret the income elasticity of demand (YED).

Select one:

a. YED= -1.33 and the good is normal and a luxury

b. YED= 1.33 and the good is normal and income elastic

c. YED = 0.75 and the good is normal and income inelastic.

d. YED = 1.5 and the good is normal and Income elastic

Setting of a price floor above equilibrium results in __________ and setting of a price floor below equilibrium results in

Select one:

a. surplus ; shortage

b. surplus ; equilibrium

c. shortage ; equilibrium

d. equilibrium ; shortage

Cigarette smoking is an example of a

Select one:

a. positive production externality

b. positive consumption externality

c. negative production externality

d. negative consumption externality

Determine the labor costs required to manufacture the 100^th item if the first item requires 50 days to produce and the learning curve is 82%. The manufacturing process requires two 9-hour shifts working each day, with 8 employees per shift. The employees are paid $17.50 per hour.

Government class: Propose further policy changes about COVID-19 needed to weather the storm, so to speak.

Government class: Describe COVID-19 issues in our existing system that are exacerbated or exposed by the pandemic and economic crisis.

According to the Classical small open economy model, what happens to domestic national saving, investment, the trade balance, and the real exchange rate in response to each of the following events? Draw a loanable funds market diagram and a net exports diagram to illustrate your answer in each case. (For these diagrams, let’s assume that the country starts out running a current account surplus and capital account deficit, as in the examples in class.)

(a) The introduction of a stylish new domestically-produced electric car makes some consumers switch from buying a foreign-produced car to buying a domestic one.

(b)The country imposes a tariff on foreign-produced goods. (For simplicity, suppose that the effect of the tariff is the following: at every value of the real exchange rate, the demand for domestic goods is higher and the demand for foreign goods is lower.) You might find it surprising that the equilibrium trade balance doesn’t change in this example; briefly give some intuition for why the Classical Small Open Economy Model implies this result.

Question 1

In the United States, where land is cheap, the ratio of land to labor used in cattle raising is

higher than that of land used in wheat growing. But in more crowded countries, where land is

expensive and labor is cheap, it is common to raise cows by using less land and more labor than

Americans use to grow wheat. Can we still say that raising cattle is land-intensive compared

with farming wheat? Why or why not?

Question 2

“The world’s poorest countries cannot find anything to export. There is no resource that is

abundant, certainly not capital or land, and in small poor nations not even labor is abundant.”

Discuss.

Question 3

The US labor movement - which mostly represents blue-collar workers rather than professionals

and highly educated workers - has traditionally favored limits on imports from less-affluent

countries. Is this a shortsighted policy or a rational one in view of the interests of union members?

How does the answer depend on the model of trade (compare the predictions from the Ricardian

and the Heckscher-Ohlin models of trade)?

Government class: current responses by state & federal governments to manage the twin viral and economic threats we are facing about COVID-19.

what is the impact of The United States history on its politics.

Consider two countries, the United States (U.S.) and Japan. In the U.S., there are two firms, Pikes Peak Steel (PPS) and General Motors (GM), both owned by U.S. citizens. In Japan, there is one firm, Toyota, owned by Japanese citizens. All of the employees of PPS and GM are U.S. citizens and all of the employees of Toyota are Japanese citizens. In a given year, PPS produces $6000 worth of steel and pays wages of $1500. It sells $2000 worth of steel to GM and $4000 worth of steel to Toyota. GM buys $2000 worth of steel from PPS and pays wages of $4000. GM produces $8000 worth of cars during the year; it sells $5500 worth of cars to consumers in the U.S., $1500 worth of cars to the U.S. government, and $1000 worth of cars to consumers in Japan. Toyota buys $4000 worth of steel from PPS and pays wages of $2500. Toyota produces $9500 worth of cars during the year; it sells $5000 worth of cars to consumers in the U.S., $1000 worth of cars to the Japanese government, and $3500 worth of cars to consumers in Japan. For the U.S. and Japan, calculate the following (please show your work) a. Gross domestic product (GDP) using the income and expenditure approaches

explain the political economy of Britain and its evolution over time.