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!)

What are four examples of economic forces that affect business activities? Do they affect all industries equally? Discuss your answers in detail.

4) why does selling bonds by the Treasury to the financial market raise interest rates? (explain briefly)

5) If the central banks buys government bonds from the financial system, how does that affect the interest rates, and what does that mean about the money supply, why, explain briefly?

6) why a central bank be independent from government? (explain briefly)

What is the difference between takeovers and leveraged buyouts? Are either good for U.S. firms or the economy? Discuss in detail.

1. Explain the main components of Globalization and the cultural flows that it produces, using appropriate examples.

Is it really possible to predict changes in social trends far enough in advance to capitalize on them without significant risks? Justify your response in detail.

Short Response Question (30%)

Is the unipolar world more peaceful than a multipolar and/or bipolar world? Why or why not? What effects does unipolarity have on the unipole itself and on other states in the international system?

The population in a community with a polluting firm increases significantly from Period 1 to Period 2. As a result, marginal damage function changes from MD₁ = 3E to MD₂ = 4E. The marginal abatement cost function for the polluting firm, which is in a competitive industry, is MAC = 120 - 2E. The MAC function does not change between the two periods.

(a) How would you adjust an emission standard so that the socially desirable level of emissions exists in each period? Show necessary calculations and write down your suggestion clearly.

(b) If an emission tax policy is used (instead of an emission standard) to reduce emissions to the socially desirable level in each period, what should be the tax rate/s in each period? Show necessary calculations to justify your suggestion.

1) Describe a time you worked on a project that was successful but not worth the time spent on it. How does this illustrate the importance of understanding opportunity costs?

2) Have your purchase decisions ever changed when you discovered a good or service was more or less expensive than expected? Relate this to income & substitution effects. How might a change in price differ from a change in your income?

The United States has returned to a zero-interest rate policy in March 2020. Discuss the pros and cons of this policy. Should Australia opt for a zero-interest rate policy? Explain your answer.(the answer is expected to be around 200 words.)

Australia’s stimulus package to cushion the economic impact of COVID-19 pandemic is nearly 15% of 2019 GDP. Notable initiatives include: JobKeeper Payment ($1,500/fortnight), JobSeeker Payment ($550/fortnight), and Coronavirus Supplement ($550/fortnight). Using the AD-AS framework, explain how these initiatives will help the economy deal with the economic fallout from COVID-19.(the answer is expected to be around 200 words.)

Why might interest rate cuts of March 2020 not have the desired effect on the Australian economy?(the answer is expected to be around 200 words.)

Current account and financial/capital account balances are supposed to net out as per theory. How did China manage to consistently maintain a positive current and financial/capital account surplus through the years?(the answer is expected to be around 200 words.)

Explain why government economic policies should not seek to push unemployment levels below the natural rate of unemployment.(the answer is expected to be around 200 words. )