9)

a) For u (x, y) = xy, what is the MRS? (Include the marginal utilities for both goods x and y in your answer; show as an intermediate step to your answer.)

b) Show some indifference curves for the utility function given in a) in a graph. Why do indifference curves representing regular preferences not intersect each other?

Personal reflective feelings about Assessment in higher education

a. Fidel Castro‟s economic legacy will be one of failure – but not perhaps quite as catastrophic a failure as his many detractors would insist. Do you agree? (Justify your answer)

Assume that you will buy and operate a piece of equipment. The machine costs $25,000. You estimate that the equipment will generate $10,000 revenue, each year for six years. You also estimate that operating costs for the machine will be $4,500 each year for six years. These estimates are in constant 2019 dollars. The inflation rate for revenues is estimated to be 3.5%. The inflation rate for operating costs is estimated to be 5.0%.   You will depreciate the machine using the MACRS method, and the 5-year category. The marginal tax rate = 34%. The salvage value = 0.

1. Determine the after-tax cash flow, in actual $.
2. Determine the book value of the machine for each year
3. Determine the NPW of the actual-dollar, after-tax cash flow, if the MARR = 6%.

QUESTION 3 a. „Unemployment is a bad omen for many families as well as the nation at large‟. Discuss the aforementioned statement. b. With the aid of diagrams, explain how fiscal and monetary policies can be used to deal with the problem of unemployment.

1) We came out of the 2001 recession some time back (quite some times back). What kind of policies were adopted to help get us out of that recession? Do these sound like Keynesian policies or Classical ones? Why? How would the policies by the other school of thought look different? What about the policies adopted to get us out of the 2008 recession? What kind of policies were these?

1- What is a transcultural competence?

2-As a young graduate who got a job in a multinational company based in one of the European countries, how do you develop the competence?

According to Ballenger, What is argumentative logic and how might you use it to organize a paper?

According to Ballenger, what are the three things that all essays must do?

Consider the market for potatoes. You can assume perfect competition.
It is known that the market equilibrium price is $3 per kg and the market equilibrium quantity is 100,000 kg. It is known that when the price is $3 price elasticity of demand is 0.4 and price elasticity of supply is 1.1. Assume that initially the market for potatoes is in equilibrium.
a)   Draw a diagram with (downward-sloping) demand and (upward-sloping) supply schedules. Indicate the market equilibrium, consumer surplus, producer surplus and the dead-weight loss. (Remember the relation between elasticity and the absolute slope of the demand and supply schedules. You do not have to be precise, just make sure it is clear which schedule is steeper).

You answer.

b)   If the price increases by 5% what would be the percentage change of quantity demanded? What would be the new quantity demanded? If the price increases from $3 to $3.03 what would be the new quantity producers would be willing to supply?

You answer.

c)   The government decides to introduce a 10% tax on the price of potatoes. How would such a decision affect the equilibrium price (paid by consumers) and the equilibrium quantity? Explain using a clearly labelled graph. (Note that you are not required to calculate anything in this question.)

You answer.

d)   What would happen to consumer surplus, producer surplus, government revenue and the dead-weight loss when the 10% tax on the price of potatoes is implemented. Explain. Show the new consumer surplus, producer surplus, government revenue and the dead-weight loss on the graph in part c). Who bears higher tax burden, consumers or producers? Explain.

You answer.

List prevailing outcomes (conditions) for respective parties (consumers and producers) when allocative efficiency (efficiency in consumption and efficiency in production) prevails.

This is an economics problems. Please answer it by using the Microeconomics concepts.

Question 4

Consider the market for potatoes. You can assume perfect competition.

It is known that the market equilibrium price is $3 per kg and the market equilibrium quantity is 100,000 kg. It is known that when the price is $3 price elasticity of demand is 0.4 and price elasticity of supply is 1.1.   Assume that initially the market for potatoes is in equilibrium.

1. Draw a diagram with (downward-sloping) demand and (upward-sloping) supply schedules. Indicate the market equilibrium, consumer surplus, producer surplus and the dead-weight loss. (Remember the relation between elasticity and the absolute slope of the demand and supply schedules. You do not have to be precise, just make sure it is clear which schedule is steeper).

You answer.

2. If the price increases by 5% what would be the percentage change of quantity demanded? What would be the new quantity demanded? If the price increases from $3 to $3.03 what would be the new quantity producers would be willing to supply?

You answer.

3. The government decides to introduce a 10% tax on the price of potatoes. How would such a decision affect the equilibrium price (paid by consumers) and the equilibrium quantity? Explain using a clearly labelled graph. (Note that you are not required to calculate anything in this question.)

You answer.

4. What would happen to consumer surplus, producer surplus, government revenue and the dead-weight loss when the 10% tax on the price of potatoes is implemented. Explain.   Show the new consumer surplus, producer surplus, government revenue and the dead-weight loss on the graph in part c). Who bears higher tax burden, consumers or producers? Explain.

You answer.

question 3.1
a)   Briefly explain how a decrease in housing prices would affect consumption and investment. You may assume that consumers would like to maintain their target wealth. (word limit: max 100 words)

You answer.

b)   Given your answer to a), what is likely to happen to GDP? Explain using a diagram.

You answer.

c)   Given your answer to b), how can the government use fiscal policy to prevent GDP from changing? Use a diagram in your explanation.

You answer.

d)   If the marginal propensity to import is large, what can be said about effectiveness of fiscal policy? (2 mark)

You answer.

question 3.2
Country X has run budget deficit for the past twenty years and its government debt stands at 120% of GDP. Due to pandemic of COVID-19 the government considers implementing big investment in infrastructure and effective decrease in taxes. Expert 1 says that the debt to GDP ratio is too high and the country cannot afford increasing it any further. Expert 1 suggests printing money instead to finance budget deficit arguing that it would be cheaper and more efficient way of financing budget deficit. You are hired as Expert 2. Would you agree with Expert 1? Explain. What would be your advice to the government? (word limit: max 200 words).

You answer.