Employees in a plant in Minnesota are observed to be industrious and very productive. Employees in a similar plant in Southern California are observed to be lazy and unproductive. Discuss how alternative views of human behavior and motivation might suggest different explanations for this observed behavior.

How are current business-level and corporate-level strategies of Google company are being implemented?

How well does each tax system meet Rawls’s principles of justice?

Visit the Fed's Summary of Commentary on Current Economic Conditions (Links to an external site.), also known as the Beige Book. Prepare a proposal recommending monetary policy actions designed to correct problems with spending, employment, and prices. Defend your choices.

Comparing market capitalist and planned socialist economic systems involves a number of practical and theoretical difficulties. What are the main difficulties one encounters when comparing the level and rate of growth of output in these differing economic systems? 1/2 page

Considering the idea of the liquidity preference theory of chapter 5, we are considering the relationship between changes in a measure of the US money supply and changes in interest rates.   Admittedly the theory and state of analysis is a bit vague in some ways because it isn’t really clear which interest rate and which money supply aggregate to use.   You will find in the data sheet DISC02Data.xlsx useful. In the first tab “RawDataFromFred” is data on M2 and a 3 month interest rate. I have added two additional items, calculations shown. The first is YRLY%M2, the second is MTHLY%M2.   YRLY%M2 is the yearly percentage change in M2 over a year period, MTHLY%M2 is the monthly change in M2 over a month to month period. Use the data in the tab “Q1Analysis” as that has all you need and the dates of the variables are matched.

1. According to the Liquidity Preference Theory, what type of relationship should I expect between changes in the money supply and interest rates? Explain.

20. If the capital stock is ABOVE the Golden Rule level, an increase in the capital stock would

A raise output less than depreciation B raise output more than depreciation

21. If the capital stock is ABOVE the Golden Rule level, an increase in the capital stock would

A cause consumption to fall B cause consumption to rise

22. At the Golden Rule level of capital,

A the marginal product of capital per worker equals the depreciation rate

B the marginal product of capital per worker net of depreciation equals zero

C both A and B

23. If the saving rate were lowered, steady-state consumption might

A fall B rise C either A or B

24. If the saving rate were raised, steady-state consumption might

A fall B rise C either A or B

Own opinion on AIG in hindsight article by Robert McDonald and Anna Paulson and citing relevant literature to support your argument as well as linking the findings to recent or ongoing significant world events.

Describe the difference between the GDP Deflator and CPI. Be sure to discuss what they measure, how one could get an inflation rate from them, and which measure is more relevant to you and why? must be atleast 100 words

1. This question has several parts
   1. Discuss how we measure unemployment in the U.S.
   2. Discuss how we measure the labor force participation rate in the U.S.
   3. Define the different components to the unemployment rate (cyclical, structural, and frictional).
   4. Using specific terms, discuss how the measured unemployment rate might under-report the actual unemployment rate.

2. This question has several parts.
   1. Discuss how we measure inflation in the U.S.
   2. Identify some of the potential problems with this measure as well as the solution that the Bureau of Labor Statistics has come up with.

3. This question has several parts.
   1. Draw an AD/AS graph to demonstrate an economy that has come to rest in an inflationary gap. Label this equilibrium point 0.
   2. Describe how the Federal Reserve Bank could use open market operations (buy or sell treasury bonds) to cool the economy and describe the effect this has on bank T accounts.
   3. Show the effect of this policy on the AD/AS graph and explain what shifts, and why.

4. This question has several parts.
   1. Use the Bureau of Labor Statistics, the Bureau of Economics Analysis, or the St. Louis FRED database to look up and cite (url) current statistics for the following.

• Unemployment rate
• Rate of inflation
• Government deficit
• Debt to GDP ratio
• Federal funds rate
• Real GDP
• Trade balance
  2. Given the information, identity one policy (fiscal or monetary) you recommend to improve the current situation. Be sure to think about how ALL the variables will be impacted by your policy decision as you think through possible recommendations.
  3. Defend your position by explaining why you’ve made this recommendation and describe any assumptions you’re making.
  4. Use at least one economic model from this quarter to defend your recommendation.
  5. Explain how this recommendation affects each of the variables listed.
  6. Discuss one other policy you considered and explain the thought process you went through to eliminate this other policy.

5. Correcting for negative externalities - Regulation versus tradable permits

Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods:

Each firm faces different costs, so reducing pollution is more difficult for some firms than others. The following table shows the cost each firm faces to eliminate each unit of pollution. For each firm, assume that the cost of reducing pollution to zero (that is, eliminating all 4 units of pollution) is prohibitively expensive.

Now, imagine that two government employees proposed alternative plans for reducing pollution by 6 units.

Method 1: Regulation

The first government employee suggests limiting pollution through regulation. To meet the pollution goal, the government requires each firm to reduce its pollution by 2 units.

Complete the following table with the total cost to each firm of reducing its pollution by 2 units.

Method 2: Tradable Permits

Meanwhile, the other employee proposes using a different strategy to achieve the government's goal of reducing pollution in the area from 12 units to 6 units. This employee suggests that the government issue two pollution permits to each firm. For each permit a firm has in its possession, it can emit 1 unit of pollution. Firms are free to trade pollution permits with one another (that is, buy and sell them) as long as both firms can agree on a price. For example, if firm X agrees to sell a permit to firm Y at an agreed-upon price, then firm Y would end up with three permits and would need to reduce its pollution by only 1 unit while firm X would end up with only one permit and would have to reduce its pollution by 3 units. Assume the negotiation and exchange of permits are costless.

Because firm Y has high pollution-reduction costs, it thinks it might be better off buying a permit from firm Z and a permit from firm X so that it doesn't have to reduce its own pollution emissions. At which of the following prices is firm Z willing to sell one of its permits to firm Y, but firm X is not? Check all that apply.

$109

$142

$188

$238

$443

Suppose the the government has set the trading price of a permit at $355 per permit.

Complete the following table with the action each firm will take at this permit price, the amount of pollution each firm will eliminate, and the amount it costs each firm to reduce pollution to the necessary level. If a firm is willing to buy two permits, assume that it buys one permit from each of the other firms. (Hint: Do not include the prices paid for permits in the cost of reducing pollution.)

Regulation Versus Tradable Permits

Determine the total cost of eliminating six units of pollution using both methods, and enter the amounts in the following table. (Hint: You might need to get information from previous tasks to complete this table.)

In this case, you can conclude that eliminating pollution is   costly to society when the government distributes tradable permits than when it regulates each firm to eliminate a certain amount of pollution.

Can you discuss cases with major financial institutions (AIG, Lehman Brothers, Goldman Sachs and others) and Credit Default Swaps?

Explain the law of demand. What does it imply about the shape of the demand curve? What relationship is shown by a demand curve?

A. What is meant by “time inconsistency of discretionary policies” ? What is the problem with it? Give an example of time inconsistency.

B. What is moral hazard? How do financial institutions deal with moral hazard? (2 marks)