Suppose the K/L ratio is higher in France than in Spain.  What would you expect to happen to wages in France as trade took place between the two countries?  Why?

Does price factor equalization effect this?

1. (a) What are the properties of indifference curves (utility functions)?

(b) Use consumer theory (budget constraints and indifference curves) to drive (show graphically) and explain an individual’s demand curve for a commodity (show how a change in price causes a movement along the demand curve).

(c) Use indifference curves and budget lines to show graphically and explain the expansion path for two normal goods and for a normal good and an inferior good as income changes.

1) How does emissions trading (cap-and-trade) work and what is the benefit of its approach?

What equal annual amount must be deposited for 10 years in order to provide withdrawals of $200 at the end of the second year and increasing by 25% per year until the end of tenth year? The interest rate is 10% compounded annually.

Paul plays video games only with his young daughter and never alone. For this reason, he always buys exactly two controllers with each purchase of a new gaming console. Otherwise he does not get any utility from owning consoles or controllers.

f) Find the Total, Income and Substitution effect on consoles, associated with the price decrease in consoles. Provide the economic interpretation behind your results. g) Find the Total, Income and Substitution effect on consoles, associated with the price decrease in consoles. Provide the economic interpretation of your results. h) Find the Total, Income and Substitution effect on controllers, associated with the price decrease in consoles. Provide the economic interpretation of your results. i) Verify that the Slutsky equation holds for both goods.

Consider 2 airplane manufacturers that compete as Cournot duopolists in the market for commercial aircraft. Arrowing (firm A) has a cost function given by ?(??)=?/???, whereas SkyTrain (firm S) has a cost function given by ?(??)=?/???^?. The market demand function for commercial airliners is given by:?=???−?? where ?is the sum of the quantity of planes available for purchase.

a)If firm A chooses output first, find the Stackelberg equilibrium quantities supplied by each firm and find the equilibrium price.

1. One of the biggest news stories of the past few months is the outbreak of COVID-19 (novel coronavirus), first in China and then throughout the world. Numerous pharmaceutical companies have begun to develop COVID-19 vaccines. If all goes well, it will be at least a year before a vaccine is developed, tested, and approved by the FDA. However, one company—Moderna Therapeutics—has beaten all of the other companies in the race so far and is the first to advance to Phase 1 clinical trials.

Suppose that Moderna is the first company to gain approval for a COVID-19 vaccine in the United States. The monthly demand for COVID-19 vaccines in the U.S. is Q = 16 – (P/6) where Q is measured in millions of vials and P is measured in dollars. Moderna’s total cost of producing Q vials of vaccine is 2Q² and Moderna’s marginal cost is 4Q.

1.A As the only company allowed to sell COVID-19 vaccines in the U.S., what price would Moderna charge for its vaccine to maximize profit? How many vials of vaccine would Moderna sell each month? What are Moderna’s monthly profits from the sale of COVID-19 vaccine?

1.B How many vials of vaccine would be produced and what price per vial would be charged if this were a perfectly competitive market?

1.C (Vaccines, like the COVID-19 vaccine being developed by Moderna, provide benefits beyond the benefits received by those vaccinated. For instance, as more people are vaccinated, the odds of disease transmission to vulnerable groups who cannot be vaccinated (e.g., infants) are reduced. Suppose the marginal social benefit of the COVID-19 vaccine is 110 – 6Q, which is greater than the marginal private benefit. Given this, what role do you think the federal government should play in vaccine development, if any, beyond the determination of safety and effectiveness associated with vaccine approval?

Consider the following statement “The Australian economy is "weak", with households weighed down by slow wages growth and higher taxes, the OECD has declared in a report that backs lower interest rates, calls for more government spending…” Use the dynamic AD-AS model to describe a longer run scenario where the government is trying to pursue higher economic growth using higher government spending, but were incorrect in their estimation of the major parameters governing long run full employment equilibrium. In your analysis discuss the implications of an incorrect scenario predicted by the government when effecting their stimulus policy on equilibrium output and (un)employment. Make sure to outline the assumptions you have made to reach your conclusion. Limited 400-500 words

Please Draw the dynamic AD-AS model ！

Discuss the meaning of 'COMPLETE INFORMATION' in the context of the 'Prisoner's Dilemma'.

Explain what equity and non-equity entry modes are and summarize their main types.

Describe the main point of Federalist paper no. 10.

Discuss the elements of the expanded marketing mix for a service business

9. A increase in the demand for beer causes the price of beer to rise. Draw a diagram showing how this will a↵ect the market for brewers. Explain what happens to their employment, wages, and marginal product of labour. How does you answer depend on the elasticity of brewers’ labour supply?

A firm produces 100 computers. Its total costs are $100,000 of which fixed costs are $40,000. What are its:

1. Average Fixed Costs
2. Average Variable Costs
3. Average Total Costs
4. When it produces another computer its total costs rise to $100,800. What is the marginal cost of the 101^st computer?