1. ) Consider an economy described by the following equations:

1. Real Sector                                      b. Monetary Sector

Y=C + I +G                            Demand for Money; r = 100 - M

C = 100 + 0.8 (Y –T)                    Supply of Money : M* = 90

I = 400 – 20 r

G =120

T = 100

Where Y is GDP, C is consumption, I is investment, G is government purchases, T is taxes, and r is the interest rate (%). And M is the stock of money. If the economy were at full employment (that is at its natural rate), GDP would be 2,000.

1. What is current actual level equilibrium level of GDP(Y*)?  

Y* =_____________________

2. What is the marginal propensity to consume (MPC) in this economy? MPC=__0.8______
3. What is the magnitude of Government Purchase’s multiplier effect?__________________
4. Suppose the central bank reduces money supply and reduces money stock from

M*=90 to M**=80. Then what is new equilibrium level of GDP(Y**)? Y**=__________

5. Choose a monetary policy by the central bank to reduce money supply from below:                                                                                         

1. Sell Government bonds (b) reduce required reserve ratio (c) reduce discount rate (d) reduce federal funds rate

    __reduce federal funds rate__________________                      

6. Assuming no change in monetary policy, what change in government purchases would restore full employment?                           

ΔG =________5_______

7. Assuming no change in fiscal policy, what change in interest rate (Δ r) would restore full employment?                                        

Δ r =________________

8. In case of (5), assume that the inrease in government purchases raises the demand for money in (b) monetary sector from r= 100 - M to r = 110 – M. This causes the equilibrium interest rate to rise to a new level (r**) and the investment to be reduced to a new level (I**).                  

Find out r** __________ and I**___________

9. Continuing from (7), the increase in interest rate implies the cost of borrowing will increase and therefore, it will reduce investment which is defined as________________
10. Draw two diagrams (a) The Money Market and (b) The Aggregate Demand Curve below to explain (7) and (8):

1.                                   (b)

What are barriers to entry? How do barriers to entry work?

Employers often select applicants based on whether they hold an academic degree. In most countries, universities need to be granted charters from government to be able to award academic degrees to their students. In return, universities must abide by comprehensive and detailed government regulations upholding appropriate standards for teaching, examination and lecturers. Use the theories of market failure and government intervention to explain the reasons for government intervention into the market for higher education. Critically discuss potential problems with these interventions.

What has been happening to private investment compared to government spending/investment in recent years?

During the novel coronavirus (COVID-19) pandemic, the government introduced lockdown measures and travel restrictions that severely reduced the trade of many small businesses. Singapore government is concerned about business closures, loss of income and unemployment in the markets concerned and is considering further interventions especially as the danger from the virus is beginning to subside. Using the demand-supply model, explain these phenomena in one or two markets of your choice. Advise which market interventions, if any, government should conduct in these markets and why.

Please overview the evolution of modern international settlement briefly.

Suppose you manage a local grocery store and yo have learn that a popular national grocery chain is about to open a store in your town a few miles away. Use model of monopolistic competition to analyze the impact of this new store on quantity of output should produce and your store should charge . Explain how opening of this new store affect your business, be asure to address what happen to your customers, supply demand and prices. what will happen to your profiyts. show graphically and explain reasoning in detail

1. Markets and government regulations are both needed to provide healthcare goods and services efficiently and effectively.

Use Google to do a web search for the website of the corporation of your choice that has not been researched by another student. Find that corporation's annual report to stock-holders on the website. Note that you can use other sites to find the following information but in either case include a link to your reference(s). Answer the following questions:

1. What does the report say about the corporation's view of future business challenges and the market in which it operates?

2. Does this corporation see long-run adjustments as described in the chapter? Explain what those adjustments are and include a link back to the annual report you used.

For full credit you must link your response to specific concepts in the chapter.

Note: The companies you choose will be in the various market structures, not pure competition. Also, long-run adjustments include entering new markets, mergers/acquisitions, implementing new technologies, innovative new products and so on.

During recent years, Micro Chips Corp. has enjoyed substantial economic profits derived from patents covering a widerange of inventions and innovations for microprocessors used in high-performance desktop computers. A recentintroduction, the Penultimate, has proven especially profitable. Market demand and marginal revenue relations forthe product are as follows:

P  =  $5500 - $0.005Q

MR =   ∂TR/∂Q = $5500 - $0.01Q

Fixed costs are nil because research and development expenses have been fully amortized during previous periods. Average variable costs are constant at $4500 per unit.

1. Calculate the profit-maximizing price/output combination and economic profits if Micro Chips enjoys an effectivemonopoly because of patent protection.

2. Calculate the price/output combination and total economic profits that would result if competitors with the same costs offer clones that make the market perfectly competitive.

1. a) Compare and contrast the GATT and WTO.

b) Explain the rationale for trade in your own words.

c). List the theories of international trade. (1 mark)

d) In your words, carefully distinguish among, three (3) of the theories of international trade: absolute advantage, (ii) comparative advantage, (iii) competitive advantage.

The coronavirus crisis brought the U.S. economy to a halt, and although economic activity has partially resumed, many anticipate a contraction in gross domestic product for 2020 (particularly between April and June). Refer to section 10-3 (The Components of GDP) from our textbook, and explain which of those components you believe is contributing the most to the downturn in economic activity? Is there more than one component that has been particularly hit? Explain your position using proper economic theory as a good foundation for your response, but making sure your own opinion and evaluative remarks stand out (i.e.: your opinion and remarks need to make economic sense!)