After reading the short article "How a Presidential Election Year Can Impact the Economy" by Jennifer Stinnett, answer the following questions.

• The Stinnett article is fairly high level. What have you learned about interest rates and the fixed securities markets that can provide evidence to support or refute the claims made by Ms. Stinnett?
• This article was posted in anticipation of the 2016 Presidential election. What has happened in the intervening time, and in the current election cycle, that influences your interpretation of this article?  

The article is very short and can be found through a quick google search of the title.

1. Describe how Coca Cola company currently prices its main products or services. Is this the best method? Why or why not?

i. Comment on the traditional approaches of skimming and penetrating that would apply to Coca Cola.

2. Identify Coca Cola's primary marketing channel's strengths and weaknesses?

i. Include an analysis of where you think Coca Cola can cut costs while also providing more value from manufacturing to final retail.

3. How do Global Brands Compete? What is the main globalization opportunity or challenge impacting Coca Cola company? What must be done to strengthen the global position of Coca Cola brand?

Can anyone elaborate on why if current trends continue, China may emerge as the world’s largest economy by 2020? Discuss the possible implications for such a development for (a) the world trading system; (b) the world monetary system; (c) the business strategy of today’s European and U.S.-based global corporations; and (d) global commodity prices.

Can you please reference scholarly articles that support why and how? I am trying to understand the specifics on why this is a relevant question at this time.

Consider the impact of economic inequality for politics and society. What are some of the methods used to assess inequality? Prescribe a policy or set of policies that you think could be the most effective at ameliorating inequality, and why.

Power distance refers to the degree to which the culture believes that institutional and organizational power should be distributed unequally and whether the decisions of the power holders should be challenged or accepted. Which countries have the lowest power distance and the highest power distance? Post a link to your source for this information and how power distance in these countries reflects each country’s approach to economic, political, and social equality.

Two polluters, A and B, have marginal abatement cost functions given by MACA=28- 2EA and MACB= 32- 2EB. (a) If the goal is to reduce the combined/total emissions from the two firms to 20 units in a cost-effective manner, then how should emission standards be set? (b) Now imagine that the two polluters are participating in a TDP/TEP market( transferable emission permits market) along with many other polluters. If the price of a permit is $10/unit in the market and Polluter A is given 12 permits by the government regulator initially, then how many permits is it likely to buy or sell? What amount of net benefits can it expect from the trade? [ Parts (a) and (b) aren't related to each other]

1. There are various ways in which presidents can set the agenda, such as the State of the Union address, bully pulpit, etc. Identify an example of a president setting the agenda. Were they successful? Why or why not?

Coal-fired power plants are known to release a lot of pollutants such as sulphur dioxide, carbon monoxide, mercury, ashes, etc.
(i) Does it matter to a coal-fired power plant whether there is a liability law or not? If so, explain in what ways.
(ii) Is there is any incentive to innovate (i.e. adopt new abatement technology) under a liability law for a polluter? Explain.

Covid 19 is a crisis primarily caused by biology, but it has resulted in economies shutting down worldwide. The US government has already introduced a stimulus package close to $2 trillion, about one-tenth of total GDP and is working on another stimulus. The Federal Reserve has lowered interest rates and is more involved in private lending than ever before. The European Union, Japanese goernment, and others are spending hundreds of billions to keep the economy afloat. Do you believe a financial crisis is a serious risk? What are the risks of these government actions?

1. It is a common misconception that the incidence of a tax (i.e., how the burden of the tax is actually divided between consumers and producers) depends on who is legally responsible for paying the tax to the government.
   1. [2 points] Briefly explain why the legal assignment of the tax does not determine the real incidence of the tax. For example, if the government collects the tax entirely from producers (it does not collect any taxes from consumers), how do consumers end up bearing part of the burden of the tax?

2. [2 points] What actually determines the shares of the tax ultimately paid by consumers and by producers?

2. [2 points] If the price of an inferior good increases, explain how we should expect the quantity demanded to change (increase or decrease) due to the income effect.

3. The director of the Springfield Natural History Museum is considering renovating the museum to make it less susceptible to earthquake damage. The director believes that there is a 15% chance that the museum will experience an earthquake, and that such an earthquake would cause $20 million in damage to the museum if it is not renovated. If the museum is renovated, an earthquake would cause no damage. Renovating the museum would cost $2.5 million and would have no benefits other than providing earthquake protection. [Note: Remember that the monetary amounts discussed here are losses, not gains, so smaller amounts are better than larger amounts.]
   1. [2 points] What is the expected value of the loss from earthquake damage if the museum is not renovated?

2. [4 points] What can we say about whether or not the museum director should renovate the museum if they are risk-averse? If they are risk-loving?

why do we need to study Economics? What was the major economic decisions you made in the past two years?

Consider the Battle of the Sexes game:

1. (1.5 point) Give the pure-strategy Nash equilibrium or equilibria, if any.

2. (6 points) Compute the mixed-strategy Nash equilibrium with p being the probability of boxing for Sophia q being the probability of boxing for Jim. As part of your answer, show how you calculate the best responses for each player by calculating the expected value of each strategy:

1. • Sophia:
     • EV(Boxing)=
     • EV(Opera)=
     • EV(Boxing)>EV(Opera) if
     • EV(Opera)>EV(Boxing) if
   • Jim:
     • EV(Boxing)=
     • EV(Opera)=
     • EV(Boxing)>EV(Opera) if
     • EV(Opera)>EV(Boxing) if

3. (2 points) Draw the best-response functions diagram on a (p, q) graph. Clearly label the best response of Jim by BRJ and the best response of Sophia by BRS.

4. (1.5 points) Show where these best response intersect and indicate at each intersection whether it defines a pure or mixed strategy equilibrium.

Graph the following scenarios, using the Supply and Demand model. 1. The market for apartment rental units in Austin: Suppose there is a set number of apartment units in the city that cannot be changed, and the government helps people pay for renting apartment units. 2. The market for cigarettes where the government imposes a consumer tax, but also helps cigarette producers pay for their costs of production.

Economists have estimated the following transportation elasticities. For each pair, explain possible reasons why the elasticities differ.

University of Richmond Professor Erik Craft analyzed the states’ pricing of vanity plates. He found that in California, where vanity plates cost $28.75, the elasticity of demand was 0.52. In Massachusetts, where vanity plates cost $50, the elasticity of demand was 3.52.

a. Assuming vanity plates have zero production cost and his estimates are correct, was each state collecting the maximum revenue it could from vanity plates? Explain your reasoning.

• Neither state is maximizing revenue. Maximum revenue is collected when elasticity is zero.

• Neither state is maximizing revenue. Maximum revenue is collected when elasticity is 1.

• Massachusetts is maximizing revenue but California is not because revenue is only maximized when elasicity is greater than 1.

• California is maximizing revenue but Massachusetts is not because revenue is only maximized when elasicity is less than 1.

b. What recommendation would you have for each state to maximize revenue?

I would recommend that Massachusetts  (Click to select)  lower its price, raise its price, not change its price  and California  (Click to select)  not change its price , raise its price, lower its price  .

c. If these estimates are correct, which state was most likely to be following a politically unpopular policy?

(Click to select)  California, Massachusetts  , because not only is it not collecting maximum revenue but it is also charging a  (Click to select)  higher price , lower price than is optimal. It could simultaneously  (Click to select) lower its price, raise its price and increase revenues, which would please both those who buy vanity plates and the Treasury.

Question 5

a) Let’s assume that the total investment (% of GDP) and saving rates are the same for two hypothetical countries in Asia. Aruba had a 4% growth rate of average annual income per capita and Smalland had a 1% growth rate. Based on the economic concept/s you have learned, explain what would have caused the growth rates to be different? Diagram/s are required.                                                                                                                            

b) Due to high levels of inflation, the Central Bank in Country A decides to sell government bonds. Using the Phillips curve framework, explain and analyse how this will impact unemployment in the short run and long run. Diagram/s are required.