Define Marshall-Lerner condition and J-curve.Explain the relation between the two concepts (25 pts.)

Assignment Task Two (300 words - 7 marks)

The coronavirus intervened Australia in early 2020.

On 12 May, the Morrison government issued an unprecedented progress report on the delayed budget, outlining the coronavirus pounding to the national economy and the huge outlay to deal with the pandemic.

What were the main issues presented? How do you think they would affect the economy, social and employment situation in the near future?

Examine the effects of a decrease in foreign output and foreign interest rate under

flexible

-

exchange rate regime when the goal of the central bank is to achi

eve output

stability

(Hint: Use Mundell

-

Fleming model)

.

What happens to the components of

demand?

Examine the effects of a decrease in foreign output and foreign interest rate under

flexible-exchange rate regime when the goal of the central bank is to achieve output stability(Hint: Use Mundell-Fleming model)

.What happens to the components of demand?

A manufacturing company is considering purchasing a 10 HP electric motor which it estimates will run an average of 6 hours per day for 250 days per year. Past experience indicates that: (1) its annual cost for taxes and insurance averages 2.5% of first cost, (2) it must make 10% on invested capital before income tax considerations, and (3) it must recover capital invested in machinery within 5 years. Two motors are offered to the company. Motor A costs $ 340 and has a guaranteed efficiency of 85% at the indicated operating load. Motor B costs $290 and has a guaranteed efficiency of 80% at the same operating load. Electric energy costs the company 2.3 cents per KW-hr. Calculate the annual cost of each motor and indicate which motor should be purchased

Demand is given by QD= 250 –2P and a firm’s cost function is C = 5Q + Q2.

(a) If this industry is a monopoly, what is the profit maximizing quantity? What is price? How much total surplus is generated?

(b) If this is a perfectly competitive industry with a cost structure equivalent to the monopoly (i.e., there is a large number of firms, the sum of whose marginal cost curves is equal to the monopolist’s marginal cost curve), what is the quantity produced? What is price? How much total surplus is generated?

Examine the effects of a decrease in foreign output and foreign interest rate underflexible exchange rate regime when the goal of the central bank is to achieve output stability (Hint: Use Mundell-Fleming model) What happens to the components of demand?

Examine the effects of a decrease in foreign output and foreign interest rate under

flexible - exchange rate regime when the goal of the central bank is to achieve output stability

(Hint: Use Mundell-Fleming model) What happens to the components of demand?

2. Discuss the potential impact of Social Entrepreneurship on poverty in general terms (in Western Washington)

Why does Charles C. Mann call his article "The Real Story of Globalization?"

Consider the hypothetical example using game theory. Assume that it is a one-off simultaneous move game, and that each player only cares about their own payoff.

LG and Samsung are deciding whether or not to release a new 360-degree camera.

If both LG and Samsung release the camera, then LG will make $20 million profit, and Samsung will make $40 million profit.

If LG releases the camera, and Samsung does not, then LG will make $30 million profit and Samsung will make $0 profit.

If LG does not release the camera, and Samsung does, then LG will make $30 million profit, and Samsung will make $60 million profit.

If neither LG nor Samsung release the camera, they both receive $0 profit

a) Depict the above outcomes in a payoff matrix

b) If LG releases the camera, what is Samsung’s best response?

c) Does LG have a dominant strategy? If so, what is it? If not, explain why not.

d) Does Samsung have a dominant strategy? If so, what is it? If not, explain why not.

e) Find the Nash Equilibrium of the game.

f) Explain why the Nash Equilibrium is a likely outcome for this game.

E 5-2B. Stage One ABC at a College: Assigning Costs to Activities An economics professor at Prince Town University devotes 60% of her time to teaching, 35% of her time to research and writing, and 5% of her time to service activities such as committee work and student advising. The professor teaches two semesters per year. During each semester, she teaches one section of an introductory economics course (with a maximum enrollment of 50 students) and section of a graduate economics course (with a maximum enrollment of 30 students). Including course preparation, classroom instruction, and appointments with students, each course requires and equal amount of time. The economics professor is paid $250,000 per year. Required Determine the activity cost of instruction per student in both the introductory and the graduate economics courses.

what is a market failure?

PROMPT:  The article describes how two prominent economists revisited their earlier work on the “gig economy” and determined that their estimates of its impact were too high, skewed by spotty data and the recession of a decade ago.

Comment on the idea of having researchers revisit their earlier work to comment on the outcome of their predictions based upon the availability of additional data.
Comment on the problems faced by a data-driven policy maker who does not have access to a complete understanding of the methods by which the data being used were compiled.

Essay Question [Venezuela's Hyperinflation Problem]

Suggest 2-3 things that would improve the quality of living for the people of Venezuela.