Questions
Please I need today answer for This question and it is very important and I need...

Please I need today answer for This question and it is very important and I need solution for this issue with all the details , and help me with all the details.Please write your answer to me by typning  not by hand writing, so that I can read and understand your answer clearly.thanks in advance/Ha

Question

This question will ask you to use the Heckscher-Ohlin model to analyze the effect of trade

liberalization between two countries. Assume that there are two production factors (capital and

labor) and two goods (cars and clothes). Assume furthermore that the car industry is capital

intensive and that the clothing industry is labor intensive. The two countries differ in their

relative endowments of capital to labor.

a) Explain how real factor prices (the real return to capital and labor) are determined in

autarky in the two countries. How do the relative factor prices differ between the two countries

depending on their relative endowments of capital and labor?

b) Now, explain how and why trade liberalization affects real factor prices in the two countries.

c) Which country will export what good and why?

d) Owners of different factors of production can differ in attitudes to trade liberalization

depending on how much they benefit in real terms. In the two countries that you have analyzed,

who will benefit and who will lose from trade liberalization?

1

In: Economics

In a far away country called Neverland, the economy has the following structure: Goods Market: C...

In a far away country called Neverland, the economy has the following structure:

Goods Market:

C = 200+ 0.8Y – 500r

I = 200 – 500r

G = 196

T = 20+ 0.25Y

Asset Market:

MP = 0.5Y – 250i

MS = 9890

T = 0.10

Labor Market:

Y = 1000

(a) Find the equilibrium real and nominal interest rates, price level, consumption and investment.

(b) Suppose a deadly epidemic hits Neverland and the government imposes a curfew in the evenings. The consequence of this policy is a drop of 60 in autonomous consumption, that is the consumption function is now C = 140 + 0.8Y – 500r. How will the real and nominal interest rate, consumption and investment change in the short-run (In the short-run prices are sticky at the level you have found in part (a).)

(c) Yiğit, a prominent economic advisor to the president of Neverland, believes in markets. He suggests an immediate increase in government spending from 196 to 220 to boost the economy. He also argues that such an increase in government spending has to be financed later on by increasing taxes and fine people of Neverland knows this fact. He claims that they will their supply of labor that in turn will increase the full-employment level of output to Y = 1025. He argues that people reach almost same consumption level as before. What will be effects of this policy on consumption, investment, the real and nominal interest rates?

(d) Sena, also a prominent economist, but an advisor to the opposition party in Neverland, is known for her Keynesian tendencies. She argues that the wages are fixed at efficiency wage level and no fine people of Neverland is willing to work for lower real wages and no good firm in Neverland will be hiring more workers. If she is right, what will happen to consumption, investment, the real and nominal interest rate?
THIS IS A QUESTION. IT HAS NOT MORE CONTENT. I SEND IT THREE TIMES. PLEASE SOLVE THIS ACCORDING THIS INFORMATION.

In: Economics

Question 1: Elaborate with an example that how commercial banks create money under fractional-reserve banking. Elaborate...

Question 1: Elaborate with an example that how commercial banks create money under fractional-reserve banking. Elaborate the tools used by Central bank of a country to increase and decrease the money supply.

Question 2: Based on the material of the chapter “ money growth and inflation” of your text book explain how inflation starts in an economy? Why multinational companies feel unsafe to invest in those countries that have high inflation rate? Write your answer the light of your text book materials.

Question 3: In the light of Purchasing-Power Parity theory explain how inflation rate a county affects its nominal exchange rate?

Question 4: Explain why and how net exports and net capital flow are related to each other. Does trade deficit necessarily create trouble for a county’s economic growth? Discuss.

In: Economics

Use IS-LM diagram to show the impact of the pandemic on the Canadian economy

Use IS-LM diagram to show the impact of the pandemic on the Canadian economy

In: Economics

When banks made loans, they traditionally ____; in recent years, they have ________ the loans. A)...

When banks made loans, they traditionally ____; in recent years, they have ________ the loans.

A)

sold the loan to another financial institution; deposited

B)

kept the loan on their own books; securitized

C)

lent money at very low rates; set high-interest rates on

D)

took deposits; originated

Freddie Mac and Fannie Mae raise funds by:

A)

issuing bonds.

B)

taking savings deposits.

C)

borrowing from the Treasury Department.

D)

None of the answers are correct.

Securitization benefits for banks include:

A)

increased liquidity.

B)

decreased diversification.

C)

increased risk of default on individual loans.

D)

None of the answers are correct.

The 1994 Riegle-Neal Act repealed the ________ ban on ________.

A)

Sherman Act's; monopolies

B)

McFadden Act's; interstate banking

C)

Monroe Doctrine's; interstate rail transportation

D)

Sarbanes-Oxley Act's; corporate accounting trickery

The creation of the financial holding company Citigroup was made possible by the passage of the:

A)

Glass-Steagall Act.

B)

Gramm-Leach-Bliley Act.

C)

Sarbanes-Oxley Act.

D)

Sherman Antitrust Act.

Freddie Mac and Fannie Mae raise funds by:

A)

issuing bonds.

B)

taking savings deposits.

C)

borrowing from the Treasury Department.

D)

None of the answers are correct.

In: Economics

How do barriers to entry allow a monopolist to earn economic profits in the short run...

How do barriers to entry allow a monopolist to earn economic profits in the short run and the long run? Why does the elimination principle eliminate economic profits in the long run for a purely competitive firm but doesn't do so for a monopolistic firm?

In: Economics

The student will write a 2-3 page review of a scholarly article on the global marketing...

The student will write a 2-3 page review of a scholarly article on the global marketing mix or identifying alternatives strategies for entering foreign markets and tactical skills needed to craft PR and advocacy campaigns in different regions of the world. Reviews should include a synopsis and your opinion of the article. The submission is to be double spaced using a 12 point font and will be graded based on depth and clarity. You need to include both the name and author of the article. This assignment is due on 04/30/2020 in class.

In: Economics

Consider the following two-player game: L C R T 2,2 0,2 0,1 M 2,0 1,1 0,2...

Consider the following two-player game:

L C R
T 2,2 0,2 0,1
M 2,0 1,1 0,2
B 1,0 2,0 0,0

(a) Find all pure strategy Nash equilibria of this game.

(b) Consider the following procedure of iterated elimination of weakly dominated actions : all weakly dominated actions of each player are eliminated at each stage. What are the action profiles that survive this procedure in the above game?

I have no problem with solving (a) but (b) is so difficult. This is a question From Osborne's An introduction to game theory. Excercise 391.1. Even though there's a solution available at Chegg, I can't follow the explanation.

In: Economics

Why does the assumption in the Contested Exchange lead to results that contradict the basic labour...

Why does the assumption in the Contested Exchange lead to results that contradict the basic labour market model.

In: Economics

Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of...

Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $6 per bag no matter how many bags are produced.

Instructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places.

a. If this firm kept on increasing its output level, would ATC per bag ever increase?

  (Click to select)   Yes   No

     Is this a decreasing-cost industry?

       (Click to select)   Yes   No

b. If you wished to regulate this monopoly by charging the socially optimal price, what price would you charge?

___ per bags

     At that price, what would be the size of the firm’s profit or loss?

At that price, the firm's ___ equals ___ million

     Would the firm want to exit the industry?

       (Click to select)   Yes   No

c. You find out that if you set the price at $7 per bag, consumers will demand 30 million bags. How big will the firm’s profit or loss be at that price?

Answer: ___

d. If consumers instead demanded 40 million bags at a price of $7 per bag, how big would the firm’s profit or loss be?

At that price, the firm's ___ equals ___ million

e. Suppose that demand is perfectly inelastic at 40 million bags, so that consumers demand 40 million bags no matter what the price is. What price should you charge if you want the firm to earn only a fair rate of return? Assume as always that TC includes a normal profit.

Answer: ___ per bag

In: Economics

Answer the following questions based on the Video: We the Economy: “Amazing Animated Film on the...

Answer the following questions based on the Video: We the Economy: “Amazing Animated Film on the Debt and the Deficit and “The Fiscal Ship” computer game.

1) List your main three goals in “The Fiscal Ship”.

2) For each of your goals, list two policies you used to achieve these goals. Explain how your goals and policies affected the government budget and the debt.  

Remember that your choices have real life ramifications. Please do not enact policies and create a country that you are not willing to live in just to balance the budget. We all have to live here.

In: Economics

Suppose that the demand for bananas is given by: Qd(p) = 1,500,000 – 50000p where Qd(p)...

Suppose that the demand for bananas is given by: Qd(p) = 1,500,000 – 50000p where Qd(p) is quantity demanded in kilograms of bananas and p is the price. Further suppose that there are many identical sellers in the domestic market who can each choose to plant bananas. If a seller chooses to produce bananas, she will incur a planting cost of $2.00 per kilogram at the beginning of the year and must pay an additional $0.50 per kilogram to harvest the bananas at the end of the year at the optimal farm scale of 12,500 kg of bananas. You may assume that the planting cost includes the opportunity costs associated with the allocated land. Thus, at the 2 beginning of the year (when both planting and harvesting costs are part of total opportunity cost), the total amount of bananas planted is given by: Qs(p) = { 0 if p < 2.50 [0, ∞] if p = 2.50 ∞ if p > 2.50 } Note that supply can be drawn as a straight horizontal line at a price of $2.50 Draw the supply and demand system and clearly mark the equilibrium outcome. Shade in the area that is the consumer surplus

In: Economics

Two firms compete by choosing price. Their demand functions are Q_1=20-P_1+P_2 and Q_2=20+P_1-P_2 where P_1 and...

Two firms compete by choosing price. Their demand functions are

Q_1=20-P_1+P_2 and Q_2=20+P_1-P_2

where P_1 and P_2 are the prices charged by each firm, respectively, and Q_1 and Q_2 are the resulting demands. Note that the demand for each good depends only on the difference in prices; if the two firms collude and set the same price, they could make that price as high as they wanted, and earn infinite profits. Marginal costs are zero.

a. Suppose the two firms set their prices at the same time. Find the resulting Nash equilibrium. What price will each firm charge, how much will it sell, and what will its profit be? (Hint: Maximize the profit of each firm with respect to its price.)

b. Suppose Firm 1 sets its price first and then Firm 2 sets its price. What price will each firm charge, how much will it sell, and what will its profit be?

c. Suppose you are one of these firms and that there are three ways you could play the game: (i) Both firms set price at the same time; (ii) You set price first; or (iii) Your competitor sets price first. If you could choose among these options, which would you prefer? Explain why.

In: Economics

Suppose that country A and country B both produce wine and cheese. Country A has 800...

Suppose that country A and country B both produce wine and cheese. Country A has 800 units of available labor, while country B has 600 units. Prior to trade, country A consumes 40 pounds of cheese and 8 bottles of wine, and country B consumes 30 pounds of cheese and 10 bottles of wine.

Country A Country B  

Labor per pound cheese 10 10

Labor per bottle wine 50 30

a. Which country has a comparative advantage in the production of each good? Explain.

b. Determine the production possibilities curve for each country, both graphically and algebraically. (Label the pretrade production point PT and the post-trade point P.)

c. Given that 36 pounds of cheese and 9 bottles of wine are traded, label the post-trade consumption point C.

d. Prove that both countries have gained from trade. e. What is the slope of the price line at which trade occurs?

In: Economics

Given last month’s March employment report (released Friday April 3), what is your expectation for GDP...

Given last month’s March employment report (released Friday April 3), what is your expectation for GDP in the 2nd quarter of 2020 and inflation

In: Economics