Why doesn’t Milner and Kubota’s (2005) argument about trade liberalization in developing countries apply to developed countries? (2.5 points).

5. The Civilian Conservation Corps and the Public Works Administration were

a. socialist experiments to reallocate property and resources in the American economy.

b. government agencies whose employees were illegally ordered to support the Democratic Party.

c. New Deal initiatives that were struck down by the Supreme Court as unconstitutional.

d. New Deal programs that provided jobs for unemployed individuals.

6. One long-lasting effect of New Deal legislation was to

a. sharpen the distinction between liberals and conservatives over the role and responsibilities of government.

b. prove that government could end a depression and otherwise control the direction of the economy if it chose to.

c. reinforce the popular view that politicians and government officials could not be trusted.

d. undermine the drive for equality for women and the members of minority communities in American society.

Consider a market that is served by a single producer. Suppose you are told that the producer has the following cost curves where TC is total cost measured in dollars, Q is the quantity, and P is the price of Q in dollars: Total Cost: TC = Q 2 Marginal Cost: MC = 2 Q Suppose you also know that the market demand curve is given by the following equation: Market Demand: Q = 96 – P

1. Determine the price and quantity that maximize the producer profit. Explain the steps of your answer. (2 points)

2. Calculate the level of profit in the short- run for this producer. (2 points)

3. Is there any deadweight loss (DWL) that results from this market? If your answer is “yes”, compute this DWL and provide a graph that is well labeled to illustrate your answer. (2 points)

4. Is there any way to regulate this market in order to achieve productive efficient in long run? Explain. (2 points) Hint: Answer shouldn’t exceed two lines.

5. Is there any way to regulate this market so that the market output is equal to 60 units? Explain. (2 points) Hint: Answer shouldn’t exceed two lines.

Suppose that the demand curve of a good is vertical over a given range of prices. Draw the corresponding indifference curves and budget lines (assume the indifference curves of this good meets the four assumptions of preference, and the budget line is linear). Is this good a normal good? (Hint: draw the diagram of the process of getting a demand curve, figure out what substitution effect and income effect should be, and whether income effect is positive or negative.)

PLEASE ATTACH GRAPHS!

Incorporating COVID-19 pandemic into the AS/AD model

Q. What are the optimal policy responses to the pandemic shocks (what would you do as a policymaker)?

Show monetary and fiscal policy responses in a new diagram, and discuss other relevant policies

(focus on macroeconomic and microeconomic policies, do not go into health and social policies although they are also important).

What is the policy mix? Explain . How can policy makers use their policy instruments to achieve their domestic policy goals? In your answer explain how macro-policy can be used to combat the problems of recession, overheating, and stagflation.

From the perspective of a developing country, why may FDI be preferable to FII?

Dalia owns a small coffee roasting firm in Manchester. She is in a monopolistically competitive market and so has some market power. The inverse demand function that she faces is given by

P=20 - 0.6 Q

where P is the price per kilo and Q is the kilos of coffee demanded and her total costs are given by

TC = 23 + 7 Q + 0.2 Q2

(a) What is the marginal revenue function of this firm? Use capital letters in your response (i.e. Q not q).

MR=__________

(b) What is the marginal cost function of this firm? Use capital letters in your response (i.e. Q not q)

MC=__________

(c) Which of the following best describes what the marginal cost means in words?

(d) How many kilos of coffee should Dalia roast if she wants to maximize her profits? Give your answer to within one decimal place (e.g. 4.1). Make sure you round correctly.

To within one decimal place (e.g. 2.3), she will produce __________kgs of coffee to maximize profits.

(e) To within one decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly.

She makes £__________ of profit.

(f) How many kilos would she produce and what price would she charge if the coffee market was perfectly competitive? Give your answer to within one decimal place (e.g. 11.4).

She would make __________ kg of coffee and charge £__________  per kg.

(g) Calculate the social cost (deadweight loss) of Dalia's market power (hint: its the area of a triangle). Give your answer to within one decimal place (e.g. 1.3).

The deadweight loss is £__________ .

Solow model without ideas accumulation

Q. Let's consider some comparative statics

(change in one exogenous variable while keeping the other exogenous variables constant).

What is the long run (steady-state) effect of a permanent reduction in the depreciation rate on the stock of capital, capital per worker, GDP, and economic growth?

Explain your reasoning using the relevant diagram

why might exposure to foreign trade hurt the economic development of poor countries? clearly explain using the relevant facts and model

Solow model without ideas accumulation

Consider the simple Solow model without ideas accumulation in the long term (steady-state).

What does the model predict economic growth?

What does it predict the level of GDP?

Write 350 words analysis about Blaine Crissman owner of the South Dakota Equity Partner.

1. What is the difference between a classical structure and a neoclassical structure? Provide examples of each type.

Two firms set prices in a market with demand curve Q = 6 − p, where p is the lower of the two prices. If firm 1 is the lower priced firm, then it is firm 1 that meets all of the demand; conversely, the same applies to firm 2 if it is the lower priced firm. For example, if firms 1 and 2 post prices equal to 2 and 4 dollars, respectively, then firm 1–as the lower priced firm–meets all of the market demand and, hence, sells 4 units. If the two firms set the same price p, then they each get half of the market, that is, they each get (6−p )/2 . Suppose that prices can only be quoted in dollar units, such as 0, 1, 2, 3, 4, 5, or 6 dollars. Suppose, furthermore, that costs of production are zero for both firms. Finally, suppose that firms want to maximize their own profits.

Show that posting a price of 0 dollars and posting a price of 6 dollars are both dominated strategies. What about the strategy of posting a price of $4? $5?

True or False (please explain the reasons of why you choose true or false)

1. A producer can charge a price far greater than marginal cost and earn large profits so long as barriers to entry prevent competitors from entering the industry.

2. Relative to competitive pricing, oligopoly pricing increases producers’ profits, reduces consumers’ surplus, and (in net) reduces social surplus.