Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill and so decides to get a flu vaccination. On the other hand, some of Sahar’s colleagues decide to skip their vaccinations because they are too busy. Do the lecturers’ decisions on whether or not to get vaccinated affect their students and if so how? Describe any market failures that arise from this situation. Describe how the government can address any of these market failures. What are some of the potential downsides to government intervention in this case?

1. Explain fully the difference between an increase in demand and an increase in quantity demanded. Be sure to explain increase, not change or decrease. Provide at least four reasons for an increase in demand. Use appropriate graphs to illustrate your answer.

Answer the following questions completely.

What has generally been associated with intensifying the worldwide depression?

Domestic content legislation applied to autos would tend to do what?

1. Explain the concept of income elasticity of demand. How is it used to identify normal goods, luxuries, necessities, and inferior goods? Be as specific and logical as possible.

Consider the following open economy in which the real exchange rate is fixed and equal to one. Saving, investment, government spending, taxes, imports and exports are given by:

S = −156+0.18Y

I = I and G = G (have a horizontal line at the top of two letters on the right side.)

T = T0 +0.1Y

Q = q1Y and X = X

where T0 is the level of autonomous taxes, and q1 is the marginal propensity to import. Let define the budget balance, BB, and net exports, NX, by:

BB = T−G

NX = X−Q

Assume that we know the values of I, BB and NX.

Solve for equilibrium income in terms of I, BB and NX. (Hint: you may rearrange the equilibrium condition to have in it the budget deficit and net exports)

Economics vs Civics:The World Bank supported a project in Cairo to build a highway to rural agricultural communities so that they would be able to sell their produce in the city. The smog from the highway is deleterious to the sphinx, resulting in protests. What are the issues – would you support the highway’s construction? Please explain using economic terms to justify your answer.

Name at least three unintended consequences of an ever-increasing prison population.

An asset costs $10,000 and has a depreciable life of 10 years and a salvage value of $3,000. Determine the book (asset) value at the end of the 9th year using each of the following methods of depreciation (a) double-declining-balance method (b) textbook-declining-balance method (Matheson formula), and (c) sum-of-years’ digits method.

Compare 4 United States cities based on income education, gender, race (specifically white, black, and Hispanics) based on welfare. Please include graphs and references.

Sarah makes 100,000 AUD per year from his inherited high-valued real estate assets and would be able to earn little income otherwise. Samantha does not have any assets and has a minimum-wage job. Could their ability to pay be the same? Why yes/no?

Please read the following short case carefully and provide your answer after analyzing question based on the appropriate open market models/diagrams.

Case: Currency Devaluation and Capital Flight

You work for Dr.Zhang, the autocratic dictator of the Republic of Zhouland. After taking an economics course, you decide that devaluing your currency (Zhoullars) is the way to increase GDP. Following your advice, DR.Zhang orders massive increases in the supply of Zhoullars, which reduces the value of Zhoullars in world markets.

1. Use the AD-AS model to determine the effects of real GDP, unemployment, and the price level in Zhouland in both the short run and the long run. Assume the economy was in long-run equilibrium before this change and consider only this stated change.
2. Analyze the effects on the market for loanable funds and the market for foreign exchange markets. Discuss the effects on investment, national saving, NCO, interest rate, exchange rate, and net export.
3. Assume that the Republic of Zhouland faces political instability and experiences a huge capital flight from its country. Repeat the same exercise you have done on the question (b).

Please do not plagiarize or copy-paste from other sources.

Case I: Offshore Outsourcing and Imports

Imagine that you are an economist working for the Congressional Budget Office (CBO). You receive a letter from the chair of the Senate Budget Committee:

Dear CBO economist,

Congress is about to consider the president’s request to cut our country’s offshore outsourcing by 50 percent and imports of durable goods by 40 percent. Before deciding whether to endorse the request, my committee would like your analysis. I wonder if you would advise us:

1. How cutting offshore outsourcing and imported durable goods will affect the domestic investment, domestic interest rate, NCO, exchange rate and net export in our country?
2. What do you think will happen to real GDP, unemployment, and the price level in our country?
3. Is there any chance for this new policy to trigger stagflation in our economy? In case, if that happens, what kind of coordinated fiscal and monetary policy would be recommended to change the situation?