You are the manager of a firm that manufactures front and rear windshields for the automobile industry. Due to economies of scale in the industry, entry by new firms is not profitable. Toyota has asked your company and your only rival to simultaneously submit a price quote for supplying 100,000 front and rear windshields for its newest version of the Highlander. If both you and your rival submit a low price, each firm supplies 50,000 front and rear windshields and earns a zero profit. If one firm quotes a low price and the other a high price, the low-price firm supplies 100,000 front and rear windshields and earns a profit of $11 million and the high-price firm supplies no windshields and loses $2 million. If both firms quote a high price, each firm supplies 50,000 front and rear windshields and earns a $6 million profit.

a) Determine your optimal pricing strategy if you and your rival believe that the new Highlander is a “special edition” that will be sold only for one year. Show completed game table with all elements in it.

b) Is this an example of a prisoner's dilemma? Explain.

c) If you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 58 percent chance that Toyota would discontinue the Highlander, what would be equilibrium strategy? Is Collusion occur? Explain your decision by showing a profit of cooperation and profit of cheating.

Explain how expansionary fiscal policy impacts a small open economy with a floating exchange rate; and compare that to how expansionary fiscal policy works for a country with a fixed exchange rate

2. In this class you have been introduced to the goals of efficiency (achieving the most net benefit) and equity (achieving more equal outcomes). The tradeoff between these goals can be seen in markets such as health care, labor, higher education, and housing. Explain how a policy maker’s values regarding the importance of efficiency versus equity would cause them to intervene in a market, or leave it alone. (Chapter 1, efficiency-equity tradeoff) (SBS2, SBS4)

Small open developing economies, such as those in the Caribbean, are perplexed by the challenges they encounter on account of inadequate resources. A typical Government strategy is investment by invitation - having MNCs fill the resource-deficit gap. Unfortunately, governments compounded the challenge by the misallocating these same resources intended for development. Discuss.Small open developing economies, such as those in the Caribbean, are perplexed by the challenges they encounter on account of inadequate resources. A typical Government strategy is investment by invitation - having MNCs fill the resource-deficit gap. Unfortunately, governments compounded the challenge by the misallocating these same resources intended for development. Discuss. ( 50 marks)

Based on the ratio of the optimal advertising expenditure to sales condition proposed by  Dorfman and Steiner(1954 ), Which of the following prescription drugs are likely to receive relatively high advertising budgets from their parent pharmaceutical companies?

Paragraph the question:

How to have an acceptable Human Development Index (in countries that do not yet enjoy it) if sustainable development is not yet achieved in these countries? Use countries with low and medium HDI as examples

Imagine that you are an economic adviser on trade for the government of Country X. A trade partner, call it Country Y, has just raised tariffs on your exports to Country Y. You are told that your country will be responding with tariffs of their own. Two of the largest imports to Country X from Country Y are unfinished timber ()wood and candy. Which of these two goods would you tell the government to put a tariff on? Why? If you had the opinion of imposing a quota instead of a tariff, would you switch to the quota or stick with the tariff. Why?

1. Nineteenth century liberalism included the idea of all of the following except

             a.         property qualifications for voting.

b.         women's suffrage.

c.         a government of limited powers.

d.         protection of basic civil rights.

e.         a constitutional state or government.

2.  The so-called "scramble" for Africa occurred

             a.         between 1815 and 1850.

b.         during the French Revolution.

c.         between the 1880s and 1900.

d.         in the 1500s.

e.         in the 1600s.

3. Woodrow Wilson's peace goals included all of the following except

a.         punishment of Germany for starting the war.

b.         open covenants of peace instead of secret diplomacy.

c.         reduction of national armaments.

d.         self-determination.

e.         a general association of nation to guarantee territorial integrity.

4. The Suez Canal is in what nation?

a.         Panama.

b.         Italy.

c.         Germany.

d.         Egypt.

e.         Great Britain.

5. Economically, colonies were important in

a.         providing markets for manufacturing items produced in the mother

            country.

b.         producing manufactured goods to be sold in the mother country.

c.         providing soldiers for the colonial armies.

d.         purchasing raw materials from the mother country.

e.         investing financial resources in the mother country.

Why would you be interested in protecting your chosen business from being copied by others’? Would you want to patent your idea or would you keep it a trade secret? Explain your choice in detail!

Provide information and advice to line managers on marketing issues, prepare, analyze and interpret monthly marketing reports, monitor and control the marketing budget.

1.Refer the above duties and identify possible critical success factors to which these duties might apply.

2.Using these duties, identify possible strategic objectives to which these duties might apply.

3.As a manager, how might you motivate the job holders of these duties?

4.For these duties, develop two performance standards

5.What does a manager need to do to ensure that satisfactory performance occurs in the above duties?

In a monetary policy move at the end of 2016, the U.S Federal Reserve Bank, the country’s central bank raised interest rate citing a stronger economic growth and rising employment. Here in Asia, currencies have generally been weakening against the US dollar as money has flown out of Asia and into the dollar.

Sources: BBC News, 15 & 16 December 2018

a) How have the Asian countries been affected by the increase in the U.S. interest rates?

b) In the absence of government intervention in Asian countries to the increase in U.S. interest rates, identify and explain two possible beneficial and two non-beneficial effects on the economy.

Consider the role of technological progress in economic growth by reference to the various theories of growth covered: the Swan-Solow growth theory, endogenous growth theory and the demand-led growth theory.