According to the Solow model, in the steady state, both output per worker Y/L and the capital stock per worker K/L grow at the rate of technological progress, and (choose one or both)

A this is confirmed by U.S. data for the past half century—about 2 percent per year

B this means that the capital-output ratio has remained approximately constant over time

Technological progress also affects factor prices, and in the steady state, (choose two)

A the real wage is constant over time

B the real wage grows at the rate of technological progress

C the real rental price of capital is constant over time

D the real rental price of capital grows at the rate of technological progress

The economies of the world exhibit

A conditional convergence

B unconditional convergence

International differences in income per person can be attributed to (choose one or more)

A differences in the quantities of physical and human capital

B differences in the efficiency with which economies use their factors of production

The Solow model

A does not explain technological progress but, instead, takes it as exogenously given

B seeks to explain technological progress and therefore treats it as an endogenous variable

To incorporate technological progress, we write the production function as

Y = F(K, L x E), where (choose one or more)

A E is the efficiency of labor

B L x E is the effective number of workers

C g is the rate of labor-augmenting technological progress

D n is the rate of growth of the labor force

E the effective number of workers L x E is growing at the rate n + g

Most technological progress has been

A labor augmenting

B labor saving

Identify those statements that are TRUE. (Choose one or more)

A The steady-state level of capital per effective worker, k, is where break-even investment, (δ + n + g)k is equal to investment sf(k)

B According to the Solow model, only technological progress can explain sustained growth and persistently rising living standards.

C The steady-state consumption per effective worker is c* = f(k*) – (δ + n + g)k*.

D Steady-state consumption is maximized if MPK = δ + n + g

E Steady-state consumption is maximized if MPK – δ = n + g

Describe the essential features of a model economy in a monetary market of rational people for which each of the following statements is true: (These features might include the pattern of population growth, monetary growth, endowments, and government policies. Note that there may be more than one model that yields the given results.)

a. The gross rate of return on fiat money is 1. The monetary equilibrium does not maximize the utility of the future generations.

b. The price level doubles from period to period. The monetary equilibrium also maximizes the utility of the future generations.

c. The gross rate of return on fiat money is 1. The monetary equilibrium also maximize the utility of the future generations.

Describe the balance of payments and what it seeks to measure. Describe the three accounts included and what these measure. Explain how an understanding of the balance of payments helps to have a more complete of exchange that takes between nations rather than focusing on the balance of goods and services. Discuss the relationship between the current account and savings, investment, and government finances. Is the current account in itself the best measure of unsustainable trade imbalances? Explain why or why not.

1. Fiat money

Select one:

a. can be exchanged for gold and silver.

b. is found in gold certificates .

c. is not acceptable in the U.S.

d. is accepted on faith.

2. Core inflation excludes price changes in food and energy because these price chang-es

Select one:

a. may not be related to a trend in the economy's overall price level.

b. may be related to trend factors in the economy's overall price level.

c. are not volatile.

d. show a constant inflation rate.

3. Which of the following is seen as a benefit to society in moving away from using checks to electronic banking?

Select one:

a. processing checks is a capital-intensive process

b. electronic banking is a labor-intensive process

c. processing checks is less costly than electronic banking

d. electronic banking is a more efficient process than check clearing

4. What agency processes most of the electronic payments?

Select one:

a. the Treasury

b. the Congress

c. the FDIC

d. the Fed

5. Disinflation

Select one:

a. is the same thing as deflation.

b. is a slowdown in the rate of inflation.

c. is a persistent decline in the level of prices.

d. is usually considered a bad thing.

6. To combat unemployment the government should use fiscal and monetary policies to

Select one:

a. run a deficit and increase the money supply.

b. run a deficit and decrease the money supply.

c. run a surplus and increase the money supply.

d. run a surplus and decrease the money supply.

7. Government demand-management policies that are used to try to increase the equi-librium level of output in the economy are known as

Select one:

a. expansionary policies.

b. fiscal dividends.

c. output policies.

d. laissez-faire policies.

8. Although prices in the United States and France may be stable, changes in the ex-change rate between dollars and euros can make the actual cost of trade more expensive for one or the other.

Select one:

a. true

b. false

International Economics

Discuss why free trade agreements (FTA) are growing so fast nowadays. How does the Covid-19 pandemic affect FTA implementation? State your arguments and opinions to support the facts. The length of your work should be at least 3 Microsoft Word pages with Times New Roman font size 12, spacing 1.5.

A monopolist faces the demand curve P =11 Q,
where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $6 per unit.
Answer the following questions, showing all workings.
a) Calculate the monopolists profit-maximizing price and quantity. Calculate the
monopolists profit.

b) Draw the average and marginal revenue curves and the average and
marginal cost curves for the monopolist including the area of profits (label the diagram accurately showing prices and quantity, along with all curves for full marks).

c) A government regulatory agency sets a price ceiling of $7 per unit.
Calculate what quantity will be produced and explain why it will be produced at that quantity.

d) Using the new price ceiling and your quantity produced figures from
part c), calculate the new profit for the monopolist.

4. Assess the motivations of drug companies that do their testing overseas. Do you think test subjects are being exploited or taken advantage of? Under what circumstances, if any, are companies morally justified in testing overseas?

business ethics chapter case 5.2 drug delimas

1. Assume that domestic demand function for oil is Q=200-P and the domestic supply function is Q=-20+P.

1. Calculate the perfectly competitive equilibrium quantity and price.
2. Calculate the consumer surpluss and the producer surpluss at perfect competition.
3. The country opens up for trade and the world price for oil is only $50. How much oil will be imported?
4. Calculate the consumer and producer surpluss and deadweight loss/gain (compared to no trade) under free trade.
5. Assume that the government imposes $10 per unit tariff on imported oil. How much oil will be imported?
6. Calculate the consumer and producer surpluss and deadweight loss/gain (compared to free trade) under tariff policy

Macropoland, a country that is a natural gas and oil importer, has a natural rate of unemployment (at the full employment level of GDP) that is about 4.5%, and the long run average rate of inflation over time has been about 2%. However, during the period 1973-1974, the country experienced an inflation rate of about 15% while simultaneously experiencing unemployment of nearly 13%.

At the present time, Macropoland is experiencing very sluggish consumption and investment (a result of a fall in the housing market), and unemployment has again edged up to around 9%. Inflation is very low at 0.4%.

Macropoland has just hired you as their economic advisor. You have a big job ahead of you. Using your knowledge of aggregate demand and aggregate supply, can you explain what happened in these two time periods?

Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.

write a conclusion based on international business correspondence

Suppose that producing a bicycle generates no environmental degradation, while buying and riding a bicycle (consumption) help reduce greenhouse gas emissions. In contrast, producing, buying and driving a car do generate greenhouse gas emissions. Based on this information, for each economic activity, first discuss whether there is externality and what type of externality it is and explain why (e.g., production/consumption of cars/bicycles leads to positive/negative/no production/consumption externality because … … …). When explaining your reasoning, make sure you relate your specific answer to the definition of externalities. Then, for each economic activity given above (e.g., production/consumption of cars/bicycles), compare private costs and benefits with the true cost and benefit to society

Give one example of a government-imposed price control and explain:

1. how it works,
2. a situation in the marketplace in which you have seen it occurring, and
3. what effects you see.

WHAT IS THE MEANING OF SUSTAINABLE DEVELOPMENT? WHAT WOULD THIS CONCEPT ENTAIL IN TERMS OF PRACTICAL POLICY FORMULATION AND IMPLEMENTATION? HOW COULD IT BE APPLIED IN THE MANAGEMENT OF AND AS A SOLUTION TO, ENVIRONMENTAL PROBLEMS AND CHALLENGES FACED BY CANADA?