Evaluate a company's recent actions (within the last six months) dealing with risk and uncertainty.

Offer advice for improving risk management.

Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.

Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.

Identify a principal-agent problem in your company and evaluate the tools it uses to align incentives and improve profitability.

Examine the organizational structure of your company and suggest ways it can be changed to improve the overall profitability.

Use at least five quality academic resources in this assignment. One reference must be about the risk and uncertainty the company has faced in the last six months.

Given the supply chain disruptions caused by the Coronavirus (Covid 19) that commenced in China and rippled throughout the globe please research and address the following aspects:

• Were organizations inordinately focused on procuring inexpensive components and products from China at the expense of supply chain diversification? (Feel free to use specific companies or industries in your analysis.) Use specific organizational examples.
• What steps should an organization implement to better mitigate supply chain risk?

A. what is mean by "time inconsistency of discretionary policies" what is the problem with it? Given an example of time inconsistency.

B. What is moral hazard? How do financial institutions deal with moral hazard?

Problem 2

Consider the links between the product market, the money market and the foreign exchange market.

Part (a)

What do you expect will happen in the money market because of the economic slowdown as a direct consequence of the COVID-19 crisis – what curve will shift, why and in which direction? In your answer do NOT include action taken by the central bank, ie monetary policy impact.  

Part (b)

What is the impact on the interest rate as a result of part (a) above?  (0.5 mark)

Part (c)

Based on the change in the interest rate of part (b) above, consider the foreign exchange market:

(i) Which curve(s) will shift?   (0.5 mark)

(ii) In which direction will the curve(s) in part (i) above shift and why?   

(iii) What is the impact on the exchange rate as a result of parts (i) and (ii) above?  (0.5 mark)

(iv) How will the change in the exchange rate from part (iii) above affect exports, imports and thus net exports.   (1.5 mark)s

(v) How will this affect the AD-AS model – which curve(s) will shift, in which direction and why?   

What is meant by 'time inconsistency of discretionary policies'? what is the problem with it? One example of time inconsistency?

what were the impact and strategies used by Coca-COLA during 2008-2010 financial crisis? what were the strategies used post the recession by coca-cola?

Oliver's PPC crosses the x-axis at (3,0) and the y-axis at (0,3). Claire's PPC crosses the x-axis at (6,0) and the y-axis at (0,12). Group of answer choices

Oliver has a comparative advantage in producing the good represented on the x-axis.

Claire has nothing to gain to trade with Oliver. Claire has an absolute advantage in both goods.

The opportunity cost of producing the good on the x-axis is greater for Oliver than for Claire.

1. How does the Bank of Canada open market operation of purchasing bonds from chartered banks effect the components of the GDP = C+I+G+X-M? Be sure to mention exchange rates in your answer.

2. Draw the Canadian economy initially in long-run equilibrium at potential GDP of Yp and price level P1. Use that AD/AS model to illustrate the effect of each of the three following separate shocks to the model in the short run.

A) Explain what happens to aggregate output and the aggregate price level.

B) Determine whether the economy faces a short-run recessionary gap or an inflationary gap.

C) What type of monetary and fiscal policies will offset each particular shock to close the gap and return to potential GDP? Expansionary or contractionary? Explain.

1. Consumer confidence in the economy increases.
2. Housing prices fall and are not recovering.
3. Oil prices increase dramatically.

1. Basically, the concept of corporate culture reflects long standing capitalist tradition in which workers are regarded as commodity and the main objective of business is to maximize profits.

a. Why does capitalist tradition matter for workers?

b. What is the role of ethics of capitalism in the pursuit of corporate profit?

Below are some data from the land of milk and honey.

YEAR       PRICE OF MILK        QUANTITY OF MILK    PRICE OF HONEY        QUANTITY OF HONEY

2001                $1                                100 Qts.                     $2                               50 qts.

2002                $1                                200                              $2                                100

2003                $2                                200                              $4                                100

1. Compute for each year the following below using 2001 as the base year.

a) nominal GDP

b) real GDP,and

c) the GDP deflator for each year, using 2001 as the base year.

2. Why do economists use real GDP rather than nominal GDP to gauge economic well being?

Select a personal health behavior and describe how it can impact both individual and population health, as well as the costs of health care delivery in the United States. Consider what efforts are being, or could be, made to lessen negative impacts on individuals and populations, as well as on costs.

The bank of Canada is concerned about the current COVID-19 financial crisis and decided to decrease its key interest rate to 0.25%.

a) with the aid of an appropriate diagram show the change in money supply

b) with your understanding of the monetary transmission mechanism and assuming an open economy how the bank of Canada actions effect the various components of AD and ultimately the equilibrium price level and real GDP ?

use the appropriate diagram to help explain your answers

Nebraska Virginia

Wheat 10 4

Cotton 12 6

21) Refer to the table above for the next few questions. Nebraska and Virginia each have 100 acres of farmland. The table gives the hypothetical figures for yield per acre in the two states. Who has the absolute advantage in the production of wheat?

a)Nebraska b)Virginia c) Both of the above d) None of the above

22) Who has the absolute advantage in the production of cotton?

a)Nebraska b)Virginia c)Both of the above d) None of the above

23) Who has the comparative advantage?

a) Nebraska b) Virginia c) Both of the above d) None of the above

24) Who has the comparative advantage in the production of cotton?

a)Nebraska b) Virginia c)Both of the above d) None of the above

Two firms compete in a homogeneous product market where the inverse demand function is P = 20 -5Q (quantity is measured in millions). Firm 1 has been in business for one year, while Firm 2 just recently entered the market. Each firm has a legal obligation to pay one year’s rent of $1 million regardless of its production decision. Firm 1’s marginal cost is $2, and Firm 2’s marginal cost is $10. The current market price is $15 and was set optimally last year when Firm 1 was the only firm in the market. At present, each firm has a 50 percent share of the market.

a. Based on the information above, what is the likely reason that Firm 1’s marginal cost is lower than Firm 2’s marginal cost?

• Second-mover advantage

• Direct network externality

• Learning curve effects

• Limit pricing

b. Determine the current profits of the two firms.

Instruction: Enter all responses rounded to two decimal places.

Firm 1's profits: $  million

Firm 2's profits: $  million


c. What would each firm’s current profits be if Firm 1 reduced its price to $10 while Firm 2 continued to charge $15?

Instruction: Enter all responses to two decimal places.

Firm 1's profits: $  million

Firm 2's profits: $  million


d. Suppose that, by cutting its price to $10, Firm 1 is able to drive Firm 2 completely out of the market. After Firm 2 exits the market, does Firm 1 have an incentive to raise its price?

• No

• Yes

e. Is Firm 1 engaging in predatory pricing when it cuts its price from $15 to $10?

• No

• Yes