What are the two types of union practices discussed in the chapter and how do these affect wages?

Short answer please.

2. Discuss with examples the redistribution cost of inflation.

1.State the distinction between the consumer price index (CPI) and the GDP price index

Suppose there are two countries – Home and Foreign – that produce only coffee and sugar. It takes home workers three hours to produce a bag of coffee; and four hours to produce a bag of sugar. Foreign country is less productive – their workers spend seven hours to make a bag of coffee and a half of a day (twelve hours!) to eventually produce a bag of sugar.

1. Which country has an absolute advantage in coffee? Sugar? Explain intuition in 1-2 brief sentences

2. Which country has a comparative advantage in coffee? Sugar? Explain intuition in 1-2 brief sentences

3. Suppose Foreign country made a technical innovation which improved productivity there by one-third. In other words, foreign workers now spend one-third less time producing a bag of sugar than previously. How does your answer for part b) change?

4. Inspired by sugar producers, Foreign country created packaging technology that allowed them to decrease time to produce a bag of coffee by an hour. How does you answer to part b) change after both improvements?

5. The flow of history was exceptionally unsuccessful for Home country – it was colonized, and home worker morale decreased. As a result, Home country lost most of the mechanical innovations and their productivity become three times slower (i.e. both production times were tripled). Likewise, Foreign country kept all improvements discussed in the previous parts. How do your answers for both parts a) and b) change?

Is a Pigouvian Tax an example of an excise? How are the two related?

Explain how the Federal Reserve influences the quantity of reserves and whether it would be possible without a fractional reserve system. Explain why traditional monetary policy is not currently available for the Fed to achieve its dual mandate (make sure to explain its dual mandate).

What is the key way that the Fehr and Schmidt model of other-regarding preferences differs from the Bolton and Ochenfels model?

Using the concepts of WTP, WTA, Consumer surplus and producer surplus, explain how free markets maximize social welfare.

According to Wolff, why won’t “re-regulation” work? What does he propose as a solution to problems of capitalism that led to the recent crisis? What do you think of Wolff's argument?

Using the concepts of WTP, WTA, Consumer Surplus, and Producer Surplus explain how free markets maximize social welfare.

1. The exchange rate between Japan (JP¥) and the United States (US$) currencies was especially volatile in the early 1990s. The JP¥/US$ exchange rate changed from JP¥160 per US$1 in 1990 to JP¥99 per US$1 in 1993.

a.      Did the JP¥ appreciate or depreciate relative to the US$ between 1990 and 1993? Explain briefly.

b.      How would this exchange rate change affect Japanese auto manufacturers who produce cars in Japan for export to the US? Explain your logic.

c.       How would this exchange rate change affect Japanese auto manufacturers who have factories in the US and assemble cars there from US and Japanese parts for sale in the US? Are they better off or worse off than the producers in part (b) above? Explain your logic,

d.      How would this exchange rate change affect Japanese investment companies who have previously purchased US financial assets? Explain your logic.

e.      How would this exchange rate change affect Japanese firms who have US$-denominated loans from US banks? Explain your logic.

: Consider a simple economy with only two sectors with consumption and government. Show how a balanced budget results. Explain your working and answer in words

consider a recessionary australian economy. Explain how forex swaps and repos can be used to achieve the same target cash rate