Distinguish between Walras’s general equilibrium approach and Marshall’s partial equilibrium approach. ( 2 page answer)

a) Explain the advantages and disadvantages of exchange rate targeting.

b) Supposing that Malaysia is adopting the fixed exchange rate system. By assuming that the Purchasing Power Parity holds, and based on IS-LM and AD-AS diagrams, explain what would happen to relative prices if the government increases or decreases its expenditure.

c) Differentiate between a fixed and flexible exchange rate.

d) Despite the disadvantages, why is fixed exchange rate preferred?

Explain the effects of a tax on producers on the equilibrium price and quantity in a competitive market. Comment on the effect on surpluses and the gains from trade.

“Policymakers are in favor of using the flexible exchange rate system compare with the fixed exchange rate system to attain both the internal balance and external balance of the economy.” Explain.

Consider the market for DVD players and HDTVs (high-definition televisions). A firm can produce DVD players at an average cost of $20 each, or HDTVs at a cost of $150 each. Which product should this firm produce if the price of DVD players is $15 and the price of HDTVs is $200? Why? Explain what you would expect other firms in both the markets for DVD players and HDTVs to do. Assume both markets are competitive.

Dear Students,

Read about Crypto currencies and answer the given question.

“Recently, cryptocurrencies and bitcoin have become the main topics in the financial industry. A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. Cryptocurrencies have their benefits and drawbacks. It is not easy to predict the future of cryptocurrencies, since there is a lot to be done especially in the field of formal regulations. However, the banks and other financial institutions should see and consider cryptocurrencies as an alternative for the financial transactions in the future”.

Questions

1.     Explain early development, challenges and risks, opportunities, advantages and disadvantages, and the future of Crypto Currencies.

2.     What is Bitcoin and how does crypto currencies (bitcoin) work? Do you think this is an alternative for Currency in circulation?

3.     What are the biggest determinants of crypto currency prices?

4.     How does the aggregate demand and supply of crypto currency affect the Economy?

the corona virus pandemic is set to bring down the country's GDP growth from an all time high 8.15% recorded in Bangladesh in the last fiscal year to straight 1.6% this fiscal year according to world bank.The government though is holding out for an 8.2% growth next fiscal year.How do you incorporate your idea to manage this sky high target of GDP and modern monetary policy (of Quantity theory of money and Phillips curve)?

Explain why the statement is true or false; Affordable bundles for a consumer only include those bundles on or below the budget line itself.

International Political Economics

1. Explain and discuss evidence of globalization in the financial sector.

what is the difference between economic output and economic growth?

How to Calculate the inflation rate for a known year solution to an unknown year solution (2020–2021) period using the GDP deflator based on the Laspeyres, Paasche, and chain-weighted indexes of GDP..

Consider the following game that has two players. Player A has three actions, and player B has three actions. Player A can either play Top, Middle or Bottom, whereas player B can play Left, Middle or Right. The payoffs are shown in the following matrix. Notice that a payoff to player A has been omitted (denoted by x).

Player B

  

(player A)

Both players choose their actions separately and simultaneously. Each must decide what to do knowing the available actions and payoffs but not what the other will actually choose. Each player believes the other to be rational and self-interested.

a) Determine the range of values of x such that Player A HAS a strictly dominant strategy.

b) List Player B’s best responses to Player A’s actions.

c) Suppose that Player A has a strictly dominant strategy. Find all the Nash equilibrium/equilibria to the game.

d) Suppose that Player A does NOT have a dominant strategy. Find all the Nash Equilibria

“Reaching full employment, where everyone who is available for work should be able to find a job, is one of the main economic policy targets for the government.” Please discuss.

What are the factors that affect the demand ,supply and elasticity of Australia fresh food industry?

Why EI (Employment Isurance) increase a frictional unemployment?

Why not cyclical unemployment, the number of discouraged workers and structural unemployment?