There are three sets of possible policy conclusions about European Structural Funds (Euro funds that allocate funds from the European Budget to promote regional cohesion):

1. The European Commission should void transfers to regions where they do not do any good

2. Improve the efficiency of structural funds by prioritising regions that benefit most from transfers

3. Reform the system of transfers

Briefly discuss whether the first two options would benefit the integration process of the European Union.

Compare and contrast the four different types of International Strategies; Transnational, International, Localization, and Global Standardization. Include in your analysis an

example of a firm that would take on that strategy and why.

We can expect the IS-curve to become flatter as

-the supply of money decreases

-the marginal propensity to consume decreases

-money demand becomes more interest sensitive

-investment becomes less sensitive to interest rate changes

-none of the above

Why government provide deductibility over tax? Is there any deductibility for consumption tax? If yes, Why? If no, Why?

What is the relationship of inflation and taxation? Would taxation be considered as the tool to control money supply?

Define the term "netnography," and discuss how netnography HAS BEEN and COULD BE used to develop marketing intelligence. Also, what are its advantages and disadvantages with respect to more traditional methodologies in marketing research?

Briefly describe the production approach to measuring a country’s Gross Domestic Product. Include in your description a definition of “value added” and explain the role of value added in calculating GDP under the production approach

Consider the following claim: “If a business has negative profits during the year, its contribution to value added in the national income accounts is also negative." If you agree with this claim, explain why and provide a numerical example that illustrates your argument. If you disagree with the claim, explain why and provide a numerical counter example.

How did the political revolution that started in 1776 lead to the economic revolution of the early 1800s? Or, was there other factors that mattered?

Use the following information to answer to answer this question.
National Income (Y) = 5,200; Budget Deficit = 150; Disposable Income (Y_d) = 4,400; Consumption (C) = 4,100; Net Export = 0. The value of Private Saving is

Group of answer choices

A -150

B 150

C 280

D 300

E none of the above

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Question 181 pts

Consider the IS-LM framework. Suppose there is a policy mix of expansionary monetary policy and contractionary fiscal policy. This combination of policies must cause:

Group of answer choices

A an increase in the interest rate (i)

B a reduction in i

C an increase in output (Y)

D a reduction in output (Y)

E ambiguous effects on the interest rate (i)

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Question 191 pts

Consider the IS-LM framework. Which of the following would increase the short-run output effects of a monetary expansion?

Group of answer choices

A an increase in the marginal propensity to consume

B an increase in the interest rate sensitivity of investment

C The IS curve is very flat

D all of the above

E none of the above

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Question 201 pts

Suppose there is an increase in government spending in a closed economy. In the medium run such a fiscal policy will cause

Group of answer choices

A The neutral interest rate to fall

B No change in the neutral interest rate

C The neutral interest rate to rise

D Output to rise

E Both (a) and (d)

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Question 211 pts

As product markets become more competitive and the mark-up decreases, we would expect which of the following to occur?

Group of answer choices

A No change in the real wage in the medium run

B An increase in the aggregate price level in the medium run

C An increase in the interest rate in the medium run

D An increase in output in the medium run

E None of the above

Use the following information of a hypothetical economy to answer this question: National Income (Y) = 5,200; Government Budget Deficit = 150; Disposable Income (Yd) = 4,400; and Consumption (C) = 4,100. The value of Investment (I) is

Group of answer choices

A150

B260

C270

D280

Enone of the above

Suppose that the economy is characterized by the money demand function with nominal income $Y = 4000 and money supply . Which of the following is false?

Group of answer choices

A equilibrium money demand is 200

B the equilibrium interest rate is i = 0.025

C an increase in nominal income will increase the equilibrium interest rate

D an increase in the money supply will decrease the equilibrium interest rate

E the equilibrium interest rate i = 0 if central bank increases money supply to

Suppose the population of a country is 100 million people, of whom 50 million are working age. Of these 50 million, 20 million have jobs. Of the remainder: 10 million are actively searching for jobs; 10 million would like jobs but are not searching; and 10 million are discouraged workers. The labour force participation rate is

Group of answer choices

A 0.6

B 0.3

C 0.8

D 0.4

Assume the economy is initially operating at the natural level of output. Suppose that individuals decide to increase their saving. Which of the following must increase in both the short run and median run equilibria?

Group of answer choices

A output

B interest rate

C price level

D investment

E consumption

Which of the following raises the structural unemployment rate?

I. higher union membership
II. more unemployment benefits
III. higher minimum wages

Group of answer choices

A I and II only

B II and III only

C I and III only

D I, II, and III

E None of the above

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Question 141 pts

Assume the economy is initially operating at the natural level of output. Suppose that individuals decide to increase their saving. Which of the following must decrease in the short run equilibrium and increase in the median run equilibrium?

Group of answer choices

A output

B interest rate

C price level

D investment

E consumption

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Question 151 pts

Suppose firms in the Australian economy have market power and, therefore, set prices P equal to the wage rate W plus a mark-up m on W (i.e. P = (1 + m)W). What would be the medium run effect(s) of an increase in the mark-up m, assuming everything else remaining constant?

Group of answer choices

A the RBA will raise the interest rate

B natural rate of unemployment will decrease

C investment will increase

D none of the above

E all of the above

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Question 161 pts

We can expect the IS-curve to become flatter as

Group of answer choices

A the supply of money decreases

B the marginal propensity to consume decreases

C money demand becomes more interest sensitive

D investment becomes less sensitive to interest rate changes

E none of the above

Give an example of a market/industry where a negative externality in present.

a. What is the difference between the private, unregulated, market output (Q)/price (P) and the optimal, regulated, market output (Q)/price (P). Explain why/how this difference comes about. Use and explain private cost, social cost, and external cost.

b. Explain the source of dead weight loss in such a market. Interpret this dead weight loss.

c. Provide two policy solutions to this problem. Use a command-and-control option and a market-based option.