E 5-2B. Stage One ABC at a College: Assigning Costs to Activities An economics professor at Prince Town University devotes 60% of her time to teaching, 35% of her time to research and writing, and 5% of her time to service activities such as committee work and student advising. The professor teaches two semesters per year. During each semester, she teaches one section of an introductory economics course (with a maximum enrollment of 50 students) and section of a graduate economics course (with a maximum enrollment of 30 students). Including course preparation, classroom instruction, and appointments with students, each course requires and equal amount of time. The economics professor is paid $250,000 per year. Required Determine the activity cost of instruction per student in both the introductory and the graduate economics courses.

what is a market failure?

PROMPT:  The article describes how two prominent economists revisited their earlier work on the “gig economy” and determined that their estimates of its impact were too high, skewed by spotty data and the recession of a decade ago.

Comment on the idea of having researchers revisit their earlier work to comment on the outcome of their predictions based upon the availability of additional data.
Comment on the problems faced by a data-driven policy maker who does not have access to a complete understanding of the methods by which the data being used were compiled.

Essay Question [Venezuela's Hyperinflation Problem]

Suggest 2-3 things that would improve the quality of living for the people of Venezuela.

How have some grocery store product categories such as grab-and-go/convenience items benefitted from COVID-19?

1. Explain the value of the Big Mac Index.

2. How did Caterpillar mitigate the risks of a strong US dollar in 2008?

1. Assume the rate of interest on USD deposits is 5% and the rate of interest on French deposits is 3% which of the following is likely to occur?

2. The equilibrium real exchange rate is the rate at which   ?

3. The price of a T-shirt made in China is 40RMB. The price of a T-shirt made in America is $75.00 Assuming an USD:RMB echange rate of 1.5, what does this imply Americas real exchange rate?

4.

If you had $100 invested in a German bank earing 3% interest and the USD was expected to depreciate by 5% what would be your overall expected rate of return on this investment?

The following table shows the number of weeks of labor required to produce 1 unit of each good in each country

1. Which country has the absolute advantage in beef? Which in petroleum?
2. Which country has the comparative advantage in beef? Which in petroleum?
3. Suppose Denmark has 600 weeks of labor available. Construct a production possibilities frontier for Denmark.
4. Construct the Danish consumption possibilities frontier if the terms of trade are 1 beef = 0.75 petroleum.

Using Y as the dependent variable and X1, X2, X3, X4 and X5 as the explanatory variables, formulate an econometric model for data that is (i) time series data (ii) cross-sectional data and (iii) panel data – (Hint: please specify the specific model here not its general form).

Do some light research about the current status of the Affordable Care Act. It has changed since its original enactment. Write one double-spaced page discussing

(1) some of the major changes

(2) why it is important for businesses to have an understanding of the Affordable Care Act

5a. The price of chicken in January is $3 and 12 pounds are purchased. The price of chicken in December is $6 and 11 pounds are purchased. Calculate the own price elasticity of demand. Explain to the delivery person so that they can understand if the demand for chicken is elastic or inelastic.

5b. The price of beef in May is $4.0 per pound and falls to $3.5 in July. The quantity of chicken consumed in May is 4,000 pounds and falls in July to 3,800 pounds. Calculate the cross price elasticity of demand. Explain to the delivery person so that they can understand if beef and chicken are substitutes or complements.

5c. A coffee cup costs $12 and people buy 5 coffee cups. The price elasticity of demand for coffee cup is -0.8. If the firm increases the price of a coffee cup by 5%, calculate the change in total expenditure. Explain your answer so that the person selling coffee would understand.

For part A and B, determine absolute and relative advantage. Then graph and write the equation on their PPF.

A. It takes Alison 24 hrs to make 1 unit of x and 6 hrs to make 1 unit of y. On the other hand it takes bob 12hrs to produce 1 unit of x and 4 hrs to produce 1 unit of y. Note that Alison and Bob each have only 96 hrs to spend on the production of X and Y.

B. It takes Alison 8 hrs to make 1 unit of x and 4hrs to make 1 unit of Y. On the other hand it takes Bob 12 hrs to produce X and 2 hrs to produce 1 unit of Y. Note that Alison and Bob each only have 120 hrs to spend on the production of X and Y.

How would interest rate, price level, GDP, and unemployment changes, If money supply increases. Show your answer graphically.