1. A kebap shop and a fancy café are adjoin. Due to the kebap shop cause too much smoke and smell, the café loses costomers.

There are number of costomers and profit assoicated with them are given below. Profit of café decreses as the number of costomers of Kebep shop increases. Depending on these data, can Coase Theorem find a solution for this externalities problem? Why?

Kebap shop                                                   The Café

Number of costomer     Profit                                  Profit                   Total

0                                          0                                          4000                     4000

100                                      3000                                   2500                     5500

200                                      5000                                   1500                     6500

300                                      6000                                   1000                     7000

QUESTION B3

The figure below depicts aggregate demand and aggregate supply in the nation of Pacifica in 2018.

At the beginning of 2019, a wave of business optimism led producers to sharply increase their planned investment expenditure.

1. What effect, if any, will this increased investment expenditure have in the short-run on the Aggregate Demand curve? The Short-Run Aggregate Supply curve? [TYPE YOUR ANSWER BELOW]

2. After the increased investment expenditure, will short-run equilibrium real GDP be above or below potential GDP? How do you know? [TYPE YOUR ANSWER BELOW]

3. After the increased investment expenditure, if the government takes no action how will Pacifica’s economy adjust over time to move towards its long-run equilibrium? (Note: for full credit you must explain not only what happens to move the economy to long-run equilibrium, but also why it happens.) [TYPE YOUR ANSWER BELOW]

The president of Pacifica is concerned about the effect of this new investment expenditure on the economy, and she wishes to use monetary policy to move equilibrium GDP back toward potential GDP. (For the remainder of the question, assume that the Pacifica Central Bank is Pacifica’s version of the United States Federal Reserve and that Pacifica’s banking and financial systems work exactly like the United States’ banking and financial systems.)

4. Which one of the following policies would help the president achieve her aim? [TYPE YOUR ANSWER BELOW]

1. Direct the Pacifica Central Bank to sell Pacifica Treasury Bills
2. Direct the Pacifica Central Bank to purchase Pacifica Treasury Bills

The figure below represents the money market in Pacifica just after the increase in investment expenditure but before the government undertakes the monetary policy you chose in part (d).

5. Explain why the Money Demand curve has a negative slope. (Note: you must say more than that money demand increases as the interest rate decreases, and vice versa. You must explain why this is the case.) [TYPE YOUR ANSWER BELOW]

6. What effect (if any) will the monetary policy you chose in part (d) have (in the short-run) on the Money Supply curve? The Money Demand curve? The equilibrium interest rate? [TYPE YOUR ANSWER BELOW]

7. What impact (if any) will this monetary policy have (in the short-run) on Aggregate Expenditure? (If it does have an effect on Aggregate Expenditure, explain which component or components of Aggregate Expenditure will be most affected.) [TYPE YOUR ANSWER BELOW]

8. What impact (if any) will this monetary policy have on short-run equilibrium real GDP and the short-run equilibrium Aggregate Price Level? [TYPE YOUR ANSWER BELOW]

When it comes to marketing and communications, government contractors and public sector IT providers face a set of unique challenges. The authors present 6 innovative B2G marketing strategies. Select one of the six strategies and discuss your thoughts on the approach and how you feel the strategy would or would not be effective.

With COVID-19 what are some thoughts and economic impacts of the lower socioeconomic communities geting hit hard by? Why has the contamination of individuals forced the building of smaller communities?

Select all of the production functions that exhibit constant returns to scale.

Q = min{K,L}

Q = K + L

Q = (K + L)²

Q = KL

Q = min{2K,3L}

Q = K^.3L^.7

Q = 2K + L

Suppose the goods market in an economy is represented by the following equations.

C = 500 + 0.5YD           I = 500 – 2000 i + 0.1Y       G = 500

X = 0.1Y* + 100e          Q = 0.2Y - 100e                   T = 400

Y* = 1000                      i = 0.05 (5%)                        e = 1

Z = C + I + G + X - eQ                                               Y = Z (equilibrium condition)

4. Suppose G increases by 100 (to 600). Calculate the new equilibrium level of output. What is the size of the multiplier?  

5. Based on your answer to d, calculate the new level of Q. Calculate the change in net exports caused by this increase in G.

6. Suppose the marginal propensity to imports (in imports equation) decreases from 0.2 to 0.1. Assume all other variables are the same. What happens to the size of multiplier? Compare the changes in Y caused by the increase in G in part d and with a new marginal propensity to imports (0.1). answer this please

Define the major roles of governors and how their power influences their leadership role and legislative relationship. Your essay should be at least 300 words in length.

Detail the components of state bureaucracy and the issues surrounding representativeness and responsiveness. Your response should be at least 200 words in length.

What do you think are the three most important qualities or skills a governor needs to possess in order to be successful in that position? Explain why you feel they are the most important. Would these factors be enough to have you vote against your political ideology? Use facts to support your opinion.

Which of the following statements about a firm’s cost structure are correct?

(a) Average cost measures the firm’s cost of producing one additional unit.

(b) Both average costs and average variable costs are always upward sloping.

(c) If marginal cost is above average cost, then average cost is increasing

6. (a) Is it economically fair (i.e., ethical) to buy low and sell high, globally? (b) Provide an example of a business efficiently using this economic principle.

Which of the following statements about the relationship between perfect competition and efficiency is NOT correct?

(a) In the short run, and assuming no other externalities, a perfectly competitive industry achieves allocative efficiency: that is, it produces the quantity which maximizes short-run gains from trade.

(b) In the long run, and assuming no other externalities, a perfectly competitive industry with free entry achieves productive efficiency: that is, output is produced at minimum average cost.

(c) In the long run, a perfectly competitive industry achieves dynamic efficiency: that is, its members invest in developing new products and improving productive technologies at socially optimal rates.

(d) All three statements above are correct.

7. (a) Among the four types of unemployment, identify the economically best type and explain why it’s the best. (b) Identify the economically most costly type of unemployment and explain why it’s the most costly. (c) What type of unemployment are workers most likely to experience after they have earned an MBA degree? Explain.