Your response should be 2-3 paragraphs and incorporate at least one outside reference. You will NOT be able to see others responses until you make the initial posting. You are then encouraged to engage in the discussion as frequently as possible.

Sembotix Company has several divisions including a Semiconductor Division that sells semiconductors to both internal and external customers. The company's X-ray Division uses semiconductors as a component in its final product and is evaluating whether to purchase them from the Semiconductor Division or from an external supplier. The market price for semiconductors is $100 per 100 semiconductors. Dave Bryant is the controller of the X-ray Division, and Howard Hillman is the controller of the Semiconductor Division. The following conversation took place between Dave and Howard:
Dave:

I hear you are having problems selling semiconductors out of your division. Maybe I can help.
Howard:

You've got that right. We're producing and selling at about 90% of our capacity to outsiders. Last year we were selling 100% of capacity. Would it be possible for your division to pick up some of our excess capacity? After all, we are part of the same company.
Dave:

What kind of price could you give me?
Howard:

Well, you know as well as I that we are under strict profit responsibility in our divisions, so I would expect to get market price, $100 for 100 semiconductors.
Dave:

I'm not so sure we can swing that. I was expecting a price break from a “sister” division.
Howard:

Hey, I can only take this “sister” stuff so far. If I give you a price break, our profits will fall from last year's levels. I don't think I could explain that. I'm sorry, but I must remain firm—market price. After all, it's only fair—that's what you would have to pay from an external supplier.
Dave:

Fair or not, I think we'll pass. Sorry we couldn't have helped.

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Is Dave behaving ethically by trying to force the Semiconductor Division into a price break? Comment on Howard's reactions.

Question 2

A. Identify any two social dilemmas associated with the situation around COVID-19.

B. For each one, specify how it satisfies the definition of a social dilemma.

C. Can you suggest ways to resolve these social dilemmas?

D. Can you represent one of the dilemmas as a game (in table form)?

1. Explain how the Heckscher-Ohlin theorem supports international trade between nations.

Peter, Jim, and Mary have a catering business where they make appetizers and desserts. Every week Mary can make either 400 appetizers or 100 desserts. Jim can make either 300 appetizers or 50 desserts. Peter can make either 375 appetizers or 75 desserts.

If they need to make 100 desserts then the largest quantity of appetizers can they make is _ .

If they need to make 150 desserts then the largest quantity of appetizers they can make is _ .

Enter whole numbers.

Are privately operated prisons efficient or inefficient? Give an explanation of your answer based on economics.

Before the Civil War, the South was the wealthiest region in the country. After the war, it was the poorest, especially the cotton states of Georgia, Alabama, Mississippi, Louisiana and South Carolina. This poverty would remain characteristic of the region for more than a century. Discuss the reasons why the South fell into poverty and remained there for such a long time.

why have economic analyses of clinical and administrative innovations become more important?

Consider the information in the table regarding prices of three goods (alpha, beta, gamma) and the quantities purchased by two individuals (Warren and Frank).

Based on this information, Warren feels like the inflation rate was __ % and Frank feels like the inflation rate was __ %.

During the latter part of the 19th century, even farmers outside the South had a difficult time. Discuss the reasons for agrarian distress in this period. What factors did many farmers blame for their problems? In what ways did farmers attempt to address and correct some of these issues?

The Federal Reserve was founded in 1913. Trace its development over the first two decades of its existence. How was it structured originally until changes were made by the Banking Act of 1935? What role did it play in the recession of 1929 to 1933?

Discuss the creation of the National Banks during the Civil War. Why did it develop into a dual banking system? Discuss the structural weaknesses of banking in the United States during the late 19th and early 20th centuries after the National Banking Act was implemented and how attempts to reform the system led to the creation of the Federal Reserve in 1913.

Find five Economic applications of any ideas in the book Candide.