Assume that a typical consumer's basket consists of 10 lbs of beef and 20 lbs of chicken. also assume that 2011 is used as the base year in the CPI calculation. Use the data below to answer the following two questions.

       a. Calculate the CPI in years 2010, 2011, and 2012

       b. Calculate the inflation rate between 2010 and 2011 and between 2011 and 2012.

One of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Do you believe that is a valid criticism? Discuss with appropriate examples

Perfect Competition is a model of which examples are few and far between. Yet economists love to discuss this model. Explain why.

2) Two firms, a and b, in a Cournot oligopoly face the inverse demand function p = 500 – 2Q. Their cost function is c (q_i) = 20 + 4q_i² for i = a, b. Calculate the profit maximizing price output combination. (3)

3) Two firms, a and b, in a Cournot oligopoly face the inverse demand function p = 25 – Q. Their cost function is c (q_i) = 0.5*q_i for i = a, b.  Calculate the profit maximizing price output combination. (3)

Relationship between total revenue and price elasticity of demand, example with graph and explain how even due to good weather some farmers are worse off?

Determine the price elasticity of demand, the cross-price elasticity of demand or the income elasticity in the following scenarios

a.  Consider the market for coffee. Suppose the price rises from $4 to $6 and quantity demanded falls from 120 to 80. What is price elasticity of demand? Is coffee elastic or inelastic?

b.  John’s income rises from $20,000 to $22,000 and the quantity of hamburger he buys each week falls from 2 pounds to 1 pound. What his income elasticity? Is hamburger a normal or inferior good?

c.  The price of apples rises from $1.00 per pound to $1.50 per pound. As a result, the quantity of oranges demanded rises from 8,000 per week to 9,500. What is the cross-price elasticity of apples? Are these goods substitutes or complements?

Production economic principles and the theory of the firm form the basis for analysing decisions by businesses about what goods and services to produce, how many goods and services to produce, and how to produce goods and services. Drawing on your understanding of the concepts of production functions, total, average, marginal, fixed and variable costs of production, and output and revenue, and using labelled diagrams, explain the key principles and measures a manager of a business would use to decide how much of a variable input to use in a production process and how much total product to make in a production cycle.

Define and explain the tenets of the perfectly competitive economic model. Explain, and show using diagrams and labels, why economists argue that competition between producers in markets to supply goods and services, and competition between consumers in markets to buy goods and services, with some conditions applying, will allocate scarce resources efficiently in the economy. Under what conditions, and why, do markets fail. Give examples of market failure, and why these occur, where markets do not provide the amount of goods and services that people would prefer, and which would make people as well off as they could be.

Compare and contrast the communication barriers for a typical store you would go to versus a communication barriers of an E-Commerce business that is online?   c

Choose the correct answer / answers:

1. If Pareto optimism prevails, then...
a) you always have to put someone worse if you want to put someone else better.

b) you have to put everyone else in a worse position if you want to put someone in a better position.

c) you have to put someone in a better position if you want to put someone else in a better position.                      

d) you do not have to put somebody worse if you want to put somebody else better.

2. The following situation is an example of market failure:
a) Managers earn up to a thousand times more than other employees.

b) Unemployment prevails due to high taxes.

c) Uncontrolled increase in the supply of money leads to hyperinflation.

d) Untreated waste water is discharged into a lake and no payment is made.

3. Redistribution policy can be justified by the fact that...
a) a market economy is often inefficient

b) a market economy can produce an unequal distribution of income.

c) a market economy may produce an unequal distribution of wealth.

d) the prevailing distribution of income does not correspond to the ethical goals of a society.

4. In Germany, the value added tax is to be temporarily reduced from 19 to 16 percent in the second half of 2020. This is a measure...
a) fiscal policy.

b) monetary policy

c) regulatory policy.

d) economic policy.

You have been appointed as a project manager for a large bank in Dubai. The board of directors can’t decide how to analyse the project stakeholders. They ask you to compare the Salience Model to the Stakeholder Rating Model. You must refer to the example of stakeholders in your comparison.

Evaluate the relative importance of the consequences of increased trade in the Atlantic Ocean from 1450-1750.

b) In perfectly competitive markets, what is the meaning of 'PERFECT KNOWLEDGE '?