How does the trade regime present opportunities and challenges for development?

Please write clear definitions of the following legal terms.

1. Consideration
2. Contractual Capacity
3. Duress
4. Fixture

The demand for video recorders has been estimated to be QV = 145 - 3.2Pv +7M - .95Pf -39PM, where Qv is the quantity of video recorders, PF denotes the price of video recorder film, Pm is the price of attending a movie, PV is the price of video recorders, and M is income. Based on the estimated demand equation we can conclude:

A. Video recorders are normal goods B. Video recorder are normal goods and demand for video recorders is inelastic C. The demand for video recorders is inelastic D. Video recorders are normal goods and video recorder film is a complement for video recorders A and C A and B

Question 1: Rebel without a cause

Two drivers speed head-on toward each other and a collision is bound to occur unless one of them deviates at the last minute. If both deviate, everything is okay (they both win 1). If one deviates and the other does not, then it is a great success for the driver with iron nerves (he wins 2) and a great disgrace for the deviating driver (he loses 1). If both drivers have iron nerves, disaster strikes (both lose 2).

1. Write down the payoff matrix of this game.

2. Briefly (1-2 sentences) define the notion of Nash Equilibrium.

3. What are the Nash equilibria of this game?

Differentiate between absolute poverty and relative poverty? Is absolute poverty concept is relevant to Pakistan? Explain how absolute poverty can be eliminated from LDC?

The inverse demand equation for the output of a monopolist is P = 50 − 2Q. The monopolist's total cost equation is C(Q) = 100 + 2Q + Q2. What is the deadweight loss at the profit-maximizing output and price?

• $48

• $64

• $16

• $32

• None of the options.

1a. Graph the long run position of a firm in monopolistic competition.

1b. Graph the typical monopolistic long run situation.

1c. Compare the two graphs and explain how they are similar.

Federal welfare programs expanded dramatically during President Johnson’s War on Poverty, continuing a prominent government role in welfare since Franklin D. Roosevelt’s New Deal. In 1997, the Aid to Families with Dependent Children (AFDC) was replaced by Temporary Assistance for Needy Families (TANF). Identify the major changes from AFDC to TANF. How does the implementation of block grants introduce considerable variation among the states? Explain the relative advantages and disadvantages of the transition from AFDC to TANF.

3. Suppose that a closed economy could be described by the following set of equations: Production Function: Y = 120K1/3 L2/3

̅̅ Factors of production: K=125; L=1000

̅̅ Government Behavior: G= 3000; T = 2500

Consumption Behavior: C = 400 + 0.8(Y –T)
Investment Behavior: I = 16500 – 1000r
a. Calculate the equilibrium level of output (Y)
b. Prove that the production function has the property of constant returns to scale.

c. Calculate the marginal product of labor (MPL)

d) Calculate the equilibrium levels of the following variables

(i) Consumption (C)

(ii) Private Savings

(iii) Public Savings

(iv) National Savings (S)

(v) real interest rate (r)

explain how the Central Bank of Venezuela could adjust its foreign exchange reserves to try to push the black-market bolivar-dollar exchange rate closer to the official fixed exchange rate?

In August 2018, the U.S. Department of Agriculture (USDA) announced the decision to purchase 11 to 13 million gallons of milk from dairy farmers, amounting to $50 million in total.

With the above information, which do you think was occurring in the dairy market that prompted USDA to make the purchase--a shortage or a surplus? Which person or group of people will USDA's purchase help? And finally do you think the purchase will impact the dairy market in terms of price, supply, and/or demand?

 How does variety lead to paralysis of action?

Consider a market consisting of several small pulp & paper mills operating in the South-east. These firms discharge chlorine and other waste products into nearby rivers and streams. The rivers and streams are not privately owned, and the mills’ discharges are currently unregulated by the EPA or by the states’ environmental agencies. The demand for paper produced by the mills in this market is P = 800 - 0.5Q. The marginal cost of producing paper in this market is MC = 20 + 0.3Q, where P and MC are expressed in dollars, and Q is expressed in tons of pulp and paper.

a. Determine this market’s equilibrium price and quantity, total revenue, marginal cost, consumer and producer surplus.

b. University researchers estimate that chlorine emissions from the industry's production impose costs, unaccounted for the industry or the market in which it operates, equal to P = 0.05Q. Determine the market’s efficient equilibrium price and quantity when all costs are accounted for.

c. The researchers then suggest that a tax, equal to the unaccounted for costs, be imposed on the production of pulp & paper in this market. What is the dollar amount of the tax? How much in revenue would the government collect? Would the market be inefficient with the tax? Explain (briefly and concisely) your answer.

Is population growth an impediment for economic development? Discuss the arguments in favour and against.