Who did more for the world, Henry Ford or Mother Theresa? Explain.

Must be 3-5 Sentences

Which of the following is an example of what backs fiat money?

bartering arrangements

trust the public has that it can be exchanged for services and goods

precious metals such as silver

If the reserve requirement is 10 percent and a monetary expansion increases excess reserves by $5 million, the total change in the money supply after all rounds of

100 million

50 million

5 million

What is an example of a security?

Fiat money

Checking account

Credit cards

All over the globe commodities (e.g. corn, wheat, beans) are priced in United States dollars. This in economic terms, is an example of

flexible values.

store of value.

What will happen to the money supply if the Fed decreases the reserve requirement?

The money supply will decrease.

The money supply is unaffected by the reserve requirement.

The money supply will increase.

units of account.

Market demand is QD= 50-P and the market supply is QS=P. The government imposes a percentage tax of 30%. What is the new equilibrium price and quantity? Select one: a. P*=25; Q*=25 b. P*=20; Q*=30 c. P*=30; Q*=20 d. P*=30; Q*=30 e. None of the above

. Suppose a factor price taker purchases one unit of factor X for $10. At what price would it purchase the second unit, and what would marginal factor cost (MFC) equal?

1. It would purchase the second unit for $10, and MFC equals $10.
2. There is not enough information to know what it would purchase the second unit for, and thus we do not know what MFC equals.
3. It would purchase the second unit for $10, but there is not enough information to know what MFC equals.
4. There is not enough information to know what it would purchase the second unit for, but MFC equals $10.

WHAT are THE CAUSES OF OUR PRESENT FINANCIAL CRISIS?

How do expectations influence the markets for loanable funds and financial markets? What is the difference between the efficient-market hypothesis and the random walk theory?

Fixed exchange rates and monetary policy

Consider a group of open economies with perfect capital mobility among them.

a) Assume that there is a Leader country. All other countries (referred to as the Follower countries) fix their exchange rates to the Leader country. Discuss the effectiveness of monetary policy in the Follower countries.

(b) If the Leader country reduces its money supply to fight inflation, what must the Follower countries do to enforce their fixed exchange rates? What is the effect on their economies? What would happen if the Follower countries did nothing?

1. Along a given demand curve, a decrease in supply will typically

   a		decrease price, but the change in quantity could be in either direction
   b		increase price and decrease the quantity
   c		decrease price but leave quantity unchanged
   d		decrease both quantity and price
   e		increase both quantity and price

2 Stagflation refers to

3. Which of the following would be included in this year's GDP?

Five years ago, the U.S. Supreme Court chose to hear a case in which a man was arrested by the Secret Service in 2006 for going up to then-Vice President Cheney and telling him that he was wrong about his decision to go into Iraq. The man sued the Secret Service for arresting him, saying that the First Amendment protects his right to criticize the government. The Court decided whether he had a First Amendment right to sue. In another case last year, a woman sued Wal-Mart for firing her for protesting the Iraq policies of then-President Bush. However, in that case, no court would hear the case (it was dismissed by all courts in which it was filed), and the woman did not get her job back. By so doing, those courts effectively upheld Wal-Mart’s right to fire the woman. Why would a federal court (i.e., the Supreme Court) elect to hear the Cheney case but no federal court would hear the Wal-Mart case?

• A. The Cheney case arguments were better made than the Wal-Mart case, otherwise, the Wal-Mart case would have been heard by the courts.

• B. The First Amendment only protects speech when that speech is threatened by the government, not when it’s threatened by private individuals or corporations.

• C. Cases that involve government officials get precedence over cases that involve private businesses.

• D. The Wal-Mart case looked to the courts more like a dispute between the woman and her employers than a First Amendment case. But, in principle, the courts would have heard the case otherwise.

1 Markets and government regulations are both needed to provide healthcare goods and services effciently and effectively. Do you agree. Justify your answer.

2 Give an example of a healthcare circumstance in which both public and private regulation are present. Which serves the consumers better and why?

3 Assuming you are the manager of a company, how could you use behavioral economics to increase the number of insured employees in your firm?

modelling Production Functions-

Q=2L-.01L^2+3K-.02K^2

L=55 K=55

compare this to L=50 K=50

Calculate output elasticity (% changeQ)/(%change inputs)what does it tell you about returns to scale for this firm and why?

Based on an analysis of his tweets and other public statements and actions, apply Hare’s Psychopathology Checklist to Donald J. Trump. Which of the twenty characteristics apply to him? To what extent do these personality traits account for his ascent in business and politics?

Suppose that an Irish Sweepstakes winner deposits $10 million in cash into her transactions account at the Bank of America. Assume a reserve requirement of 25 percent and no excess reserves in the banking system prior to this deposit. Show the changes on the Bank of America balance sheet when the $10 million is initially deposited.