Given the Covid19 crisis that has impacted global economies on an unprecedented scale. The level of disruption is likely to persist as government around the world is likely to implement policies at all level to arrest the uncertainties. Some of the extreme policy implemented include utilizing of sovereign reserves of last resort, reduced interest rate, and quantitative easing to mitigate job losses.

In 500 words, evaluate the situation above and suggest how corporations can effectively survive in the survival of the fittest.

International Political Economics - Question

1. What are characteristics of the world trade regime after WWII. What are the characteristics and principles of GATT.

International Political Economics - Question

1. Explain what for Game Theory is used in IPE. What are the main assumptions in Game Theory? Explain in detail the Chicken Game and give at least one example from IPE, which can be applied to the Chicken Game, and how it can be applied.

International Political Economics - Question

1. What is the study of IPE and what are the main approaches of IPE. Explain their main focuses and characteristics.

Short Story: People in America often wonder why we pay higher prices for pharmaceutical drugs versus countries that have socialized medicine like Canada, Great Britain, and Sweden. Here is the dirty little secret. These socialist governments often threaten U.S. pharma firms that they will steal the patents or outright reverse engineer the drug to figure out the formula. If they do this then they will get the drugs fast and cheap while the U.S. pharma firms get stuck with the total cost of the billions they spent on research and development on these life-saving medicines. This is dirty.

These socialist governments then negotiate a deal with the U.S. pharma companies to get the drugs shipped to them at a cheaper price and Americans end up paying higher costs. In a sense, American capitalism is supporting government-run healthcare in these socialist nations.

Of course, U.S. pharma firms are not innocent angels either. They do their best to maintain the monopoly on their drugs for a full 20 years before they will allow the production of generic drugs by all pharma firms.

Many of the new drugs that have been invented over the last 30 years was because of the hard work of the U.S. government-funded National Institute of Health and the bright professors and students in our leading universities such as UC Irvine Medical Center, UC of San Francisco, etc… All of this activity is actually funded by the U.S. taxpayer.

Finally, because of the endless bureaucratic red tape and expensive testing rigor demanded by the U.S. Food & Drug Administration, the average cost to produce a new drug is about $2.2 billion.

Essay Question: What a mess! What ideas do you have for this Oligopoly market structure to get U.S. pharma drug prices lower for the average American?     

19. Suppose you find that MU1( x1,x2)=2x2 and MU2( x1,x2)=2x1. What is the rate at which the consumer is willing to trade good 2 for good 1 at bundle (2,4)? (Note: enter a positive number, i.e. enter the quantity of good 2 that the consumer is willing to give up for an additional—marginal—unit of good 1.)
20. Suppose you find that the expressions of the marginal utilities for a consumer are given by MU1( x1,x2)=1 and MU2( x1,x 2)=3. Then you can conclude that:
a. This consumer has Cobb-Douglas tastes
b. For this consumer good 1 and good 2 are perfect complements
c. For this consumer good 1 and good 2 are perfect substitutes
d. None of the above
21. Suppose a consumer is always willing to give up 5 units of good 2 for an additional unit of good 1. For this consumer:
a. Good 1 and good 2 are perfect complements
b. Good 1 and good 2 are perfect substitutes
c. Good 1 and good 2 are both essential goods
d. None of the above
22. Suppose a consumer is always willing to give up 4 units of good 2 for an additional unit of good 1. Which of the following utility functions represents the tastes of this consumer?

a. u(x1,x2)=min{4x1,x2}
b. u(x1,x2)=min{x1,4x2}
c. u(x1,x2)= x1+4x2
d. u(x1,x2)=4x1+x2
e. None of the above

25. Consider the following utility functions: u1(x1,x2)=x1+x2 ans u2(x1,x2)=3x1+3x2 Do they represent the same tastes?
a. Yes
b. No
c. There is not enough information to answer

Use the shape of Von Neumann-Morgenstern utility function to explain gambling behavior

Find an article that explains a change to GDP (output) caused by any factor that influences either Dynamic Aggregate Demand or Dynamic Aggregate Supply. Explain how such a shift would be graphed using the DAD/DAS model.  

When this occurred, consumer confidence in Europe declined.  Consumer confidence impacts C, which is a component of AD (C+I+G+Nx) This is shown by people reducing their spending which impacts both the British and the US economy by having a decrease in the DAD (shift to the left). When this curve shifts to the left, we would expect US output to fall. We would also expect there to be a slight decrease in the price levels.

Requirements:

1) Post a link to any recent (3-5 years) news article that is explaining a change in either DAD or DAS.

2) Translate the article into the terms we used in this course. Identify which component of aggregate spending or aggregate supply is impacted, and in which direction.

3) Use the DAS/DAD model to predict the impact to price levels and output.  

Fiscal Policy

1. When responding to a recession, Congress faces two choices about its policy response--change taxes or change spending. If you support a large federal government, which policy would your endorse? Explain

2. In the Budget Challenge, you had an opportunity to increase or decrease taxes. What changes did you select? Who is helped or harmed by the changes that you proposed? How did the overall debt change as a result of your proposed changes?

In "The Shifts and the Shocks" by Martin Wolf, what are some strengths and weaknesses of this book? Why are they considered strengths and weaknesses?

16) If the Fed makes an open market ________ of government securities, the federal funds rate will ________ as the quantity of money ________.

A) purchase; rise; increases

B) sale; fall; increases

C) purchase; fall; decreases

D) sale; rise; decreases

17) If the Fed makes an open market ________ of government securities, the federal funds rate ________ and the immediate impact is to shift the aggregate ________ curve.

A) purchase; falls; demand

B) sale; falls; demand

C) sale; rises; supply

D) purchase; rises; supply

18) If the Fed makes an unexpected open market ________ of government securities, the aggregate ________ curve shifts rightward and ________.

A) sale; supply; the short-run Phillips curve shifts upward

B) purchase; demand; the short-run Phillips curve shifts downward

C) sale; demand; there is a movement along the short-run Phillips curve

D) purchase; demand; the long-run Phillips curve shifts rightward

19) When the Fed enacts monetary policy, in the short run it changes

A) the AD curve.

B) the SAS curve.

C) both the AD and SAS curves.

D) potential GDP.

20) If the economy is at potential GDP and the Fed makes an open market sale of government securities, in the long run the aggregate ________ curve shifts ________ and the price level ________.

A) demand; rightward; rises

B) supply; leftward; rises

C) demand; leftward; falls

D) supply; leftward; falls

please answer everything and correct thankyou

Monetary policy

3. Think about the loanable funds market. If the Federal Reserve engages in an open market purchase of government, the supply curve ??? and the real interest rate ???.

4. Think about the loanable funds market. If the Federal Reserve engages in an open market sale of government, the supply curve ??? and the real interest rate ??? .

5. When the Federal Reserve engages in an open market sale, this pushes the interest rate ??? and the aggregate demand curve shifts to the ???? .

6. The Federal Reserve is attempting to increase the aggregate demand curve to fight a recession. Which of the following would accomplish their goal? Check all that apply.

7. The Federal Reserve is attempting to decrease the aggregate demand curve to fight inflation. Which of the following would accomplish their goal? Check all that apply.

8. Assume that the bank currently has excess reserves of zero, and the required reserve ratio is 10%.  If the Fed buys $150 million, the amount of new loans that the bank can make initially increases by _______ million. Be exact.

9. If the economy is currently operating at potential GDP, an open market purchase of government securities by the Federal Reserve Board will put upward pressure on prices.

True

False

10. Assume that the bank currently has excess reserves of zero, and the required reserve ratio is 20%.  If the Fed sells $120 million of government securities to JeffCo Bank, the amount of loans that the bank can make decreases initially  by _______ million. Be exact.

11. Use the Taylor Rule to find the federal funds rate (FFR).

Assume that the Fed has a target inflation rate of 2% and a target GDP growth rate of 3%. What FFR should they set if the current inflation rate is 2% and GDP is currently growing at 3%?  

Answer: _____%

12. Use the Taylor Rule to find the federal funds rate (FFR).

Assume that the Fed has a target inflation rate of 2% and a target GDP growth rate of 3%. What FFR should they set if the current inflation rate is 2% and GDP is currently growing at 1%?  

Answer: _____%

13. Use the Taylor Rule to find the federal funds rate (FFR).

Assume that the Fed has a target inflation rate of 2% and a target GDP growth rate of 3%. What FFR should they set if the current inflation rate is 5% and GDP is currently growing at 1%?   This is an example of stagflation where the economy experiences inflation with slow growth.

Answer: _____%

14. When the Fed used quantitative easing to combat the Great Recession, they purchased assets from bank balance sheets. What did the Fed think that banks would do in response? Explain why you believe this outcome would occur.

15. What action did the FOMC take at their last meeting?

I have a question that has 3 parts to it and I'm not sure about the answers. Could someone please give me the answers and maybe explain a little as well? Would be greatly appreciated!

Question 1:

Part A)

Suppose Home has 500 units of capital and 250 units of labor and Foreign has 1000 units of capital and 3000 units of labor. Which of the following statements is true?

a) Home is more capital abundant than Foreign

b) Foreign is more capital abundant than Home

c) None of the above

Part B)

Suppose to produce a pair of shoes you need 1 unit of capital and 5 units of labor and to produce one unit of a widget you need 2 units of capital and 2 units of labor. Which of the following statements is true?

a) Shoes are more capital intensive than widgets

b) Widgets are more labor intensive than shoes

c) Shoes are more labor intensive than widgets

d) None of the above

Part C)

Which of the following is NOT an assumption of the Heckscher-Ohlin model of trade?

a)Countries differ in endowments

b)Goods differ in factor intensities

c)Preferences are identical across countries

d)Labor is the only factor of production

6) Japan's population increased by 3 percent in 2010. As a result, which of the following occurred?

I.   an increase in potential GDP

II. a rightward shift in the long-run aggregate supply curve

III. a rightward shift in the short-run aggregate supply curve.

A) I, II and III.

B) III only.

C) I and II only.

D) II and III.

AACSB: Analytical Skills

7) Keynesian economists believe that

A) the economy automatically adjusts towards full employment.

B) monetary policy causes business cycles.

C) there are no business cycles.

D) activist government policy is needed to get the economy to full employment.

8) A recessionary gap occurs when

A) the short-run aggregate supply curve shifts rightward.

B) real GDP is less than potential GDP.

C) the economy is at its long-run equilibrium.

D) government interferes with the economy.

9) Classical economists believe that the economy

A) requires activist government intervention to reach its potential level of GDP.

B) is self-regulating and does not require government intervention.

C) can be affected by only monetary policy.

D) is persistently below its potential level of GDP.

10) The impulse leading to business cycles in the Keynesian model is changes in

A) the structural deficit.

B) open market operations.

C) business confidence.

D) the expected future price level.

please answer everything and correct thankyou

(a) Explain why the marginal cost curve above the average variables cost curve is referred to as the firm’s short run supply curve? ( use both verbal and diagram analysis)