The cost of a typical basket of consumer goods is shown below for six ( 6 ) years. Year Cost of Basket Year Cost of Basket 1 $ 175 4 $ 211 2 $ 183 5 $ 225 3 $ 193 6 $ 236 Required: Calculate the following: 1. The CPI for each year, and the rate of inflation for years 2, 3, 4, 5 and 6. In doing this students with the last name starting with, A to C will use Year 6 as the base year, D to G will use Year 5, H to L will use Year 4, M will use Year 3, N to R will use Year 2, and S to Z will use Year 1. Both the CPI values and inflation rates must be stated to one decimal place. Please use year 6 as base year. thanks.

The Westview Mall rents space to clothing stores and charges shoppers an entry fee to get into the mall. All clothing stores are identical and all shoppers are identical. Answer the following questions, using a graph that shows the supply and demand for clothing:

1. If the mall rents space to several competitive clothing stores, how much can it collect in rent? How much can it collect in entry fees? How much can it collect altogether?

2. If the mall rents space to a single monopoly clothing store, how much can it collect in rent? How much can it collect in entry fees? How much can it collect altogether?

3. Would you advise the Mall owner to rent to several competitive stores or to one monopoly? Why?

4. Copy centers usually give substantial discounts to customers with large orders. Do you think they are price discriminating? Why or why not?

5. True or False: Because a monopolist is able to charge a higher price than a perfectly competitive firm, his marginal revenue is higher than what a perfectly competitive firm’s would be.

6. The RH Snippet company has one president and 1000 assembly line workers. Which of the following events would have a bigger impact on the price of Snippets and why? a) The president gets a raise of $1,000,000 a year. b) A new union contract raises each worker’s wages by $1,000 a year, but allows the firm to fire as many workers as it wants to.

*****How do you answer 1-3 using a graph, please show me the correct answer with graph*****

What is free will in capitalism?

Can you please explain and show graphically how the change in interest rates affects aggregate demand

Drawing proper diagram, explain the followings:

(a) The effect of expected inflation on the demand for bonds.

(b) The effect of expected inflation on the supply of bonds.

(c) Explain how expected inflation affects the interest rate.

Below is a table which shows a firm’s cost structure.

(a) Is the firm facing a short-run or long-run condition? Explain.

(b) Does the firm exhibit labour specialisation? Explain.

Price Discrimination

Promoters of a major college basketball tournament estimate that the demand for tickets on the part of adults is given by Q^A = 5,000 – 10P_A, and that demand for tickets on the part of students is given by Q^S = 10,000 – 100P_S. The promoters wish to segment the market and charge adults and students different prices. They estimate that the marginal and average total cost of seating an additional spectator is constant at $10 (i.e. there are no fixed costs).

1. If the promoters segment the market and charge adults and students different prices, what is the profit maximizing quantity that should be sold to each segment and what price should be charged for each segment? What is the total profit generated when the promoter segments the market?
2. Suppose the CEO of the tournament decides that price discrimination hurts the public image of the tournament and decides to charge everyone the same price. Calculate the profit maximizing number of tickets and the price of tickets when there is no price discrimination. What is the total profit generated when the promoter does not segment the market?

Identify a micro business within your locality and document its sales performance prospects and challenges, make recommendations to improve the situation for the firms.

Please detailed explanation will be a good one

Part III: Scarcity, Cost-Benefit, and Opportunity Cost

1) List the THREE questions society must ask itself because of scarcity. (1.5 pts)

2) What are the potential costs and benefits of deciding to go to a 4-year university after graduation? (2 pts)

Costs:

Benefits:

3) Give a situation where you’ve had to use a cost-benefit analysis to make a decision. What were the costs and benefits? (3 pts)

Situation:

Costs:

Benefits:

4) Tyler received $100 for his birthday. He chooses to buy five new video games instead of saving it for gas for a trip to Chicago he wants to take. What is the opportunity cost in this scenario? (2 pts)

5) Using the graph below, answer the following questions. (1.5 pts)

If the entrepreneur decides to make 18 goods, he can only provide ________ services.

If the entrepreneur decides to now make 22 goods, he can only provide _______ services, which makes his opportunity cost ________________________.

In the country of Macroland, the labor market is represented by the following equations:

                        Q_D = 600 – 40W

                        Q_S = -50 + 60W

where Q is the quantity of Labor in millions of workers and W is the wage rate.

(a) Currently, the minimum wage Law in Macroland is $10 per hour. Calculate, the number of labor supplied, the number of labor demanded, the number of unemployed and the unemployment rate.            

(b) If Macroland eliminates the minimum wage law, what would happen to total employment, wage rate and the unemployment rate? 0

(c) In a clearly labeled graph, show your results for (a) and (b).

1. Suppose the Fed decides to increase the money supply. It purchases a government bond worth $2,000 from Antonia, a private citizen. Antonia deposits the check in her account at First National Bank. Supposed the required reserve ratio is 0.2 (20%).

(a) Trace the effect of this change through three banks- First National, Second Federal, and Third State.

(b) How much money will be generated in this banking system?

In 1960, Sraffa published his major work entitled "The Production of Commodities by Means of Commodities" and by this book he led to rethinking of political economy. Do you agree with this idea? Why? Why Not?

   Using the quantity theory of money, suppose that this year's money supply is $50 billion, nominal GDP is $1 trillion, and real GDP is $500 billion.

a.   What is the price level? What is the velocity of money?

b.   Suppose that velocity is constant and the economy's output of goods and services rises by 5 percent each year. What will happen to nominal GDP and the price level next year if the Bank of Canada keeps the money supply constant?

c.    What money supply should the Bank of Canada set next year if it wants to keep the price level stable?

d.   What money supply should the Bank of Canada set next year if it wants inflation of 10 percent? (5marks)

What are the basic contributions of Post Keynesians? Discuss the role of interest, money and investment in Keynes. Do you think, capitalism will need public policy in order to overcome the the effects of virus in economics? Why? Why not?