Why is there a market failure in the 401(k) market? (Hint: read chapter 8 and its description of imperfect information) Write at least 2 paragraphs.

Explain how to determine whether the law of demand holds given an input demand function and whether L and K are complements, substitutes, or unrelated inputs.

Compare and contrast the impact of a change in the price of a good on the utility-maximizing bundle of goods with the impact of a change in the price of input on the output maximizing and cost-minimizing bundles of inputs.

France's hybrid system of government. How does the hybrid system solve some of the problems France experienced with a parliamentary system?  

There are 4 ways of finding out how much people are WTP for improvements in environmental quality. One of them is “Hedonic estimation”. Explain this method by using an example?

The reasons why the housing market is of particular interest to the Reserve Bank , and the steps the Bank can take to mitigate risks that might arise from the housing market. Make sure you discuss the macroprudential policy measures that the Bank has put in place to address concerns arising from the housing market

Why Might Restaurants be Considered Safe During the Current National Pandemic?

Stephan Logan, M. Sc., Indigo Instruments, Modern Resource Management, wrote on March 10, 2000 that:

"There may be a threat to the restaurant industry (during the national pandemic) but in reality, they are the safest places other than your own kitchen."

Based on what was conveyed in the Webinar, would you agree with this statement? Why or Why Not?

Are there any variables that might cause you to disagree? Why?

5. Assume that a country produces an output Q of 50 every year and that r* = 10%. Consumption C is 50 every year, and I = G = 0. Suppose there is a temporary drop in output in year 0, so Q falls to 28. Q returns to 50 in every future year. If the country desires to smooth C, how much should it borrow in period 0? What will the new level of C from then on? (Hint: calculate the new present value of output and then estimate the new constant level of consumption.)

A. The nation borrows 20 in period 0 and the new level of C is 48.

B. The nation borrows 22 in period 0 and the new level of C is 28.

C. The nation borrows 28 in period 0 and the new level of C is 36.

D. The nation borrows 48 in period 0 and the new level of C is 22.

6. If a nation experiences an output shock and wishes to borrow to smooth consumption, how much of consumer spending must it forgo each year to achieve consumption smoothing and maintain the long-run budget constraint?

A. an amount equal to r*/(1 + r*) of the output shock

B. an amount equal to r* as a percent of the former level of GDP

C. an amount equal to 20% of its output shock

D. 95% of the output shock

7. Which expression below represents the change in wealth in period 0? Use the following notation: Δ denotes change, W_t is external wealth at time t, TB_t is the trade balance during time period t, and r* is the constant real interest rate. Assume that net labor income from abroad is zero, there are no capital gains on external wealth, and there are no unilateral transfers.

A. ΔTB₀ = W₀ + r*W_-1.

B. ΔW₀ = TB₀ + r*W_-1.

C. ΔW_-1 = ΔW₀ + TB₀.

D. ΔTB₀ = ΔW_-1 + r*W_-1.

What are the possible consequences for Yemen in terms of it being labeled a failed state?

In the case of Yemen, how does nationalism lead to conflict?

Is a recessionary or inflationary gap bad for an economy? Have you ever wondered how the federal government and the Federal Reserve react to smooth out recessionary and inflationary gaps? In this activity, you will explore the concepts of fiscal policy and the attempts the U.S. government takes when the U.S. economy is in a recessionary or inflation gap. You will discuss the concepts of aggregate supply and aggregate demand to determine how the U.S. economy can work its way back to long-run equilibrium based.

Locate a recent article (published within the last year) that discusses fiscal policy and whether the U.S. economy is in an inflationary or recessionary gap. You can use the Hunt Library, newspapers, new stations, or other credible sources to locate an article. Analyze the article and then address the following concepts in your discussion.

• Interpret recessionary and expansionary gaps within the economy.
• Explain the inter-workings of fiscal policy tools.
• State how taxation and government spending works.
• Differentiate between fiscal and monetary policy.
• Demonstrate the mechanics of discretionary fiscal policy within the Keynesian framework.

Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.

1. The United States does not allow oranges from Brazil​ (the world's largest producer of​ oranges) to enter the United States.

If Brazilian oranges were sold in the United​ States, oranges and orange juice would be cheaper.

Use the laws of demand and supply to explain whether the above statement is true or false.

If Brazilian oranges are sold in the U.S.​ market, then the​ _________ will​ increase, the price of oranges ​ _________.

A.

quantity of oranges​ supplied; will​ fall, and the statement is true

B.

supply of​ oranges; will​ fall, and the statement is true

C.

quantity of oranges​ supplied; will​ rise, and the statement is false

D.

supply of​ oranges; will​ rise, and the statement is false

If Brazilian oranges are sold in the U.S.​ market, the​ _________ will increase because​ _________.

A.

supply of orange​ juice; the cost of producing orange juice will fall and the quantity demanded will increase

B.

price of orange​ juice; the demand for orange juice will decrease

C.

quantity supplied of orange​ juice; it will be cheaper to produce orange juice and the quantity demanded will increase

D.

quantity of orange juice​ demanded; the quantity supplied will increase and its price will fall

17. Which of the following events in the market for smartphones illustrates the law of​ demand?

1. The price of a smartphone falls.

2. Producers announce that smartphone prices will fall next month.

3. The price of a call made from a smartphone falls.

4. The price of a call made from a​ land-line phone increases.

5.An increase in memory makes smartphones more popular.

A.

Events​ #1, #3, and​ #4

B.

Only Event​ #2

C.

Only Event​ #1

D.

Events​ #2, #3,​ #4, and​ #5

E.

All 5 events

18. The​ free-rider problem arises from the inability of private provision to achieve allocative efficiency of

A.

private goods

B.

rival goods

C.

exculdable goods

D.

environmental goods

19. Karen pays a tax of​ $200 on her income of​ $40,000 while Bill pays a tax of​ $80 on his income of​ $20,000. This tax​ is:

A.

a flat tax

B.

proportional

C.

regressive

D.

progressive

20. Frictional unemployment is the result of

A.

the economic decline of major industries.

B.

an economic recession.

C.

people not getting along​ (having friction) with their employers.

D.

changing weather throughout the year.

E.

the normal process of jobs being created and destroyed.

21. El Nino takes toll on U.S. rice farmers

Dry weather has delayed rice planting and harvests will be low. But wheat is enjoying a bumper crop.

​

Using the demand and supply​ model, explain how the prices of rice and wheat will change and how the markets for rice and wheat will influence each other.

A poor rice harvest will​ _____ rice and​ ____ its price.

A.

decrease the demand​ for; raise

B.

decrease the supply​ of; raise

C.

decrease the demand​ for; lower

D.

decrease the supply​ of; lower

22. A bumper wheat crop ​ ____ wheat and​ ____ its price.

A.

increases the supply​ of; raises

B.

increases the demand​ for; raises

C.

increases the supply​ of; lowers

D.

increases the demand​ for; lowers

23. The markets of wheat and rice influence each other because wheat and rice​ are______.

A.

​substitutes, so a higher price of rice will increase the demand for wheat

B.

​substitutes, so a lower price of wheat will increase the demand for rice

C.

​complements, so a lower price of wheat will increase the demand for rice

D.

​complements, so a higher price of rice will decrease the demand for wheat

24. Suppose that your starting salary after graduating from WMU is​ $40,000. The CPI in the year you graduate is 400 using 1962 as the base year. When your father graduated from college in​ 1962, his starting salary was​ $12,000. After adjusting for inflation since​ 1962:

A.

your real starting salary equals your​ father’s nominal starting salary.

B.

your starting salary exceeds your​ father’s starting salary.

C.

your starting salary is less than your​ father’s starting salary.

D.

your starting salary is the same as your​ father’s starting salary.

25. The multiplier​ effect:

A.

equals the change in total spending divided by the change in total output.

B.

refers to the fact that a change in​ nonincome-determined spending leads to a larger change in total output and employment.

C.

allows for an​ increase, but not a​ decrease, in total output and income since wages and other incomes tend not to fall

D.

is larger the greater the portion of total spending going toward the purchase of imports.

18. If government officials break a natural monopoly up into several smaller​ firms, then

A.

the costs of production will decrease.

B.

competition will force firms to attain economic profits rather than accounting

profits..

C.

competition will force firms to produce surplus output which drives up price

D.

the costs of production will increase.

19. The incidence of a tax refers to

A.

the deadweight loss that a tax generates.

B.

the inefficiency of a tax.

C.

the revenue collected by government because of a tax.

D.

the division of the burden of a tax between buyers and sellers.

E.

the division of the burden of a tax between the public and the government.

20. If the CPI increases from 366 to 390 in a particular year and you lend your friend​ $10,000 at​ 9% simple interest for that​ year, what is the dollar value of the real interest you earn if she pays the debt on​ time?

A.

​$656

B.

​$615

C.

​$244

D.

​$285

E.

​$900

21. Suppose that Yellow Cab Company is granted a license by the Kalamazoo City Council to be the only company operating within the city limits of Kalamazoo. Granting this license is an example of

A.

legal barriers to entry

B.

a​ price-discriminating monopolist

C.

a case in which a single firm controls a resource necessary to produce the good

D.

natural barriers to entry

30. In the long​ run, a decline in the money supply​ ______ the price level and will lead to a​ ______ in real GDP.

a.​ lowers; reduction.

b.​ lowers; does not change.

c.​ lowers; increase.

d. does not​ change; increase.

A.

​lowers, reduction

B.

​lowers, does not change

C.

​lowers, increase

D.

does not​ change, increase

31. To stimulate the economy the Federal Reserve​ should:

A.

sell securities on the open​ market, raise the reserve​ requirement, and raise the discount rate.

B.

sell securities on the open​ market, lower the reserve​ requirement, and lower the discount rate.

C.

reduce the reserve​ requirement, reduce the discount​ rate, and reduce open market operations

D.

buy securities on the open​ market, lower the reserve​ requirement, and lower the discount rate.

32. Which of the following does NOT influence the price elasticity of​ demand?

A.

whether the good is a necessity or a luxury.

B.

the number of substitutes available to consumers

C.

the amount by which the demand curve shifts when the price of another good changes

D.

the time period buyers have to respond to a price change

E.

the price of the good relative to total income

33. International trade benefits

A.

only the importer.

B.

only the exporter.

C.

both the exporter and the importer.

D.

the exporter at all times and sometimes also the importer.

E.

neither the exporter nor the importer.

34. International trade benefits

A.

only the importer.

B.

only the exporter.

C.

both the exporter and the importer.

D.

the exporter at all times and sometimes also the importer.

E.

neither the exporter nor the importer.

35. Exotic holidays are​ ______ good and local holidays are​ ______ good.

A.

a​ normal; a normal

B.

neither an inferior good nor a normal​ good;

neither an inferior good nor a normal good

C.

an​ inferior; an inferior

D.

an​ inferior; a normal

E.

a​ normal; an inferior

36. Which of the following would be expected to cause the aggregate demand curve to shift to the​ left?

A.

A reduction in the level of real GDP.

B.

The​ Fed’s purchase of government securities.

C.

A reduction in the discount rate.

D.

An increase in the required reserve ratio that decreases money supply.

E.

An increase in the price level.

The market for apple pies is competitive and has the following demand schedule:

Price	Quantity Demanded
$7	600
8	500
9	400
10	300
11	200
12	100
13	0

Q	TFC	MC	TC	ATC
1	$9	$2
2	9	4
3	9	6
4	9	8
5	9	10
6	9	12

a. When P = $11, how many pies does each producer make? [Hint: Find MR. Use the profit maximization rule: MR = MC. Firms never choose the quantity such that MR < MC. Or, you can directly compute profit for each quantity.]

b. How many producers are there? How much profit does each producer earn? [Hint: To get the number of producers in the market, use the relationship between market quantity and the quantity produced by each firm. Because we assume all firms are identical, firms are producing the same quantity.]

Long-run equilibrium

c. In the long-run, there is free entry and exit process. How much profit does each producer earn in the long-run equilibrium? Why?

d. What are the market price and the number of pies each producer makes? How many pies are sold? [Hint: Use the condition for the market price in the long-run. Next, note that once the market price is determined, each seller’s quantity is determined by the above table.]

e. How many producers are operating in the long-run? Is the number of sellers larger than that in the short-run? Why?