Newfoundland’s fishing industry has recently declined sharply due to overfishing, even though fishing companies were supposedly bound by a quota agreement. If all fishermen had abided by the agreement, yields could have been maintained at high levels.

Model this situation as a prisoner’s dilemma in which the players are Company A and Company B, and the strategies are to keep the quota and break the quota. Suppose that if both companies keep the quota, then each receives a payoff of $100, and if both break the quota, then each receives a payoff of $0. On the other hand, if one of the companies breaks the quota and the other keeps the quota, then the company that breaks the quota receives a payoff of $150, and the company that keeps the quota receives a payoff of -$50.

Instructions: Enter the players' payoffs in the payoff matrix below. Be sure to include a negative sign (-) in front of any negative numbers.

What is the dominant strategy for both companies?

In equilibrium, what is each company's payoff?

Relative to the equilibrium outcome, both companies would be better off if they (Click to select)both kept the quotaboth broke the quota.

On the planet Homogenia every consumer who has ever lived consumes only two goods, x and y, and has the utility function U( x, y) = xy. The currency in Homogenia is the fragel. In this country in 1900, the price of good 1 was 1 fragel and the price of good 2 was 2 fragels. Per capita income was 108 fragels in 1990. In 2000, the price of good 1 was 3 fragels and the price of good 2 was 4 fragels and per capita income increased to 120

a. The quantity of x that's consumed in 1990 and 2000 are: ______ and _______respectively

b. The quantity of y that's consumed in 1990 and 2000 are: ______. and ______ respectively

c. The Laspeyres quantity index for the quantity level in 2000 relative to the price level in 1900 is. ___________ (rounded to 2 decimals)

d. The Paasche quantity index for the quantity level in 2000 relative to the price level in 1900 is ____________(rounded to 2 decimals)

e. The Laspeyres price index for the price level in 2000 relative to the price level in 1900 is _____________ (rounded to 2 decimals)

f. The Paasche price index for the price level in 2000 relative to the price level in 1900 is ___________ (rounded to 2 decimals).

Outline of current policy in China aimed at addressing GDP. Describe measures currently or previously attempted in the country to address the issue, and explain the impact of these on the population.

1. Explain what happens to the efficiency of free markets if:

a) There is market power exercised by buyers or sellers.

b) There are externalities

2. What is the relationship between a change in the size of a tax, and the change in the deadweight loss of the tax?

3. What is the best predictor of whether reducing a tax in a market will increase or decrease tax revenue? Explain.

Discussion

True or False and Why?

I would like you to evaluate whether the following statements are true or false. Also, please provide your reasoning to support your answers.

Absolute vs. Comparative Advantage

Suppose that U.S. has an absolute advantage in the computer production compared to Germany, while Germany has an absolute advantage in the auto production compared to U.S. This implies that U.S. has a comparative advantage in the computer production and Germany has a comparative advantage in the auto production.

Production Possibility Frontier (PPF) vs. Consumption Possibility Frontier (CPF)

The Production possibility frontier is always the same as the consumption possibility frontier. (Hint: (Compared the case of no trade versus free trade)

Instructions

Please make your initial post by midweek, and respond to at least one other student's post by the end of the week.

a) Use the internet, library, or other information source to research imports and exports for any state or country in the world. Pick a country or state and discuss its import goods and export goods. You should include some dollar values or % of GDP figures

b) For the country you choose, discuss some possible sources of comparative advantage for that economy.

1.) Given the information below about Farmer Sally’s wheat crop, fill in the table below and calculate her economic profit or loss when the market price is $3 per bushel. Hint: Recall that         MR = P under perfectly competitive conditions.

1. Graph Total Cost and Total Revenue on one graph and show the optimal point (either profit maximization or loss minimization).
2. Graph MC, ATC, AVC, and MR on one graph and show the optimal point (either profit maximization or loss minimization). Shade in the area of profit or loss.
3. If the price increased to $5 per bushel, what would be the economic profit or loss? How many bushels of wheat would Sally choose to produce?
4. What is Sally’s shutdown point? Answer this question in terms of both a minimum price that she would have to get in order to produce and a minimum quantity that she would be willing to make at the minimum price.

Determine whether each of the following cases is an example of 1)horizontal fdi 2) vertical FDI 3)offshoring. Explain your reasonings for each use. . IS THIS AN EXAMPLE OF HORIZONTAL FDI, VERTICAL FDI OR OFFSHORING

a) toyota motor corporation , a Japanese automative manufacturer. owns multiple manufacturing facilities in the US

.b) Apple Inc, an American technology company , hires Foxconn, a multinational electronics contract manufacturer, for assembling Iphones in China.

2. Consider a firm with the following short run costs:

1. Calculate the MC and AVC for each level of production (quantity).
2. How much would the firm produce if it could sell its product for $5? For $7?, for $10?
3. Explain your answers.
4. Assuming that its fixed cost is $3, calculate the firm’s profit at each of the production levels determined in part c.

what would happen to the interest rate price level, GDP and unemployment if credit cards become less available?

3. Describe the governmental subsidies to real estate, and their impact on the economy.

Suppose you are running an online marketplace, and you want to reduce the number of returns your customers make so that you can reduce your shipping costs. How might you use the following concepts to encourage your customers to make purchases they don’t regret? Adaptation, projection bias, peak-end evaluation, pre-commitment.

4. Assume the full employment level of national income (YF ) is at $280 billion. In order to reach YF from the existing equilibrium income level in ( 3 ) above, calculate the required changes, ceteris paribus, in a) Government spending ( G ) b) Autonomous taxes ( Ta ) c) The tax rate (t)

Please look at my previous questions. Thanks!

1.   Assume a private, closed economy where Y = C + I, and C = 10 + 0.9Y and   I = 15. (Values in $ billions.)

1. Solve algebraically for the equilibrium level of national income.
2. Calculate the value of the multiplier.  
3. Solve graphically for the equilibrium income by constructing an accurate

i) The 45 degree graph

ii) savings/investment graph   

2. Now add the government sector to the model so that Y = C + I + G where C = 10 + 0.9[Y – T] , I = 15, G = 25, T = Ta + tY = 5 + 0.10Y.  

a)         Solve for the new equilibrium level of national income.

b)         Calculate the size of the

i) new multiplier

                        ii) budget balance

3. Now add the foreign sector to the model so that Y = C + I + G + [ X - M ] where the new variables are: X = Xa = 40, and M = Ma + mY = 5 + 0.11Y.    The other variables remain the same as in question 2.

1. Solve for the new equilibrium level of national income.
2. Calculate the size of the

i)   New multiplier

            ii) Trade balance  

            iii) Budget balance

Why is taxonomy important and useful? Include a brief description of the three Cs.