Why would a country want to join the European Monetary Union and what would be the downside of this decision ? Who would be the winners and who would bethe losers ? If you’ve travelled abroad, please share your experience with foreign transactions. Please use economic terms in response.

Why do governments sometimes pay for their spending by printing more money? Why do economists refer to this as an ‘inflation tax” that can result in very harmful results?

MUST BE OVER 250 WORD RESPONSE

Provide an example of a pair of products that you would consider to have a positive cross price elasticity. Provide another example of a pair of products you would expect to be negative. Is there a scenario where someone else might view them in the opposite way?

An insurance company would like to offer theft insurance for renters. The policy would pay the full replacement value of any items that were stolen from the apartment. Some apartments have security alarms installed. Such systems detect a break-in and ring an alarm within the apartment. The insurance company estimates that the probability of a theft in a year is 0.05 if there is no security system and 0.01 if there is a security system (there cannot be more than one theft in any year). An apartment with a security system costs the renter an additional $50 per year. Assume that the dollar loss from a theft is $10,000 and that the insurance company is risk neutral and the renter would be willing to pay more than the expected loss to insure against the loss of theft. For a security system to be effective the renter must turn it on whenever he or she leaves the apartment. Suppose it costs the renter $10 per year in expended effort to turn on the alarm system. What is the insurance company's break-even price for a one year theft insurance policy for an apartment with a security system?

An insurance company would like to offer theft insurance for renters. The policy would pay the full replacement value of any items that were stolen from the apartment. Some apartments have security alarms installed. Such systems detect a break-in and ring an alarm within the apartment. The insurance company estimates that the probability of a theft in a year is 0.07 if there is no security system and 0.02 if there is a security system (there cannot be more than one theft in any year). An apartment with a security system costs the renter an additional $100 per year. Assume that the dollar loss from a theft is $10,000 and that the insurance company is risk neutral and the renter would be willing to pay more than the expected loss to insure against the loss of theft. For a security system to be effective the renter must turn it on whenever he or she leaves the apartment. Suppose it costs the renter $20 per year in expended effort to turn on the alarm system. What is the lowest deductible amount would provide sufficient incentive for the renter to turn on the alarm system each time she leaves the apartment?

How has Ireland been impacted by the International Monetary Fund (IMF), the World Bank, and/or the World Trade Organization? Is it one of the primary contributors and if so has it allowed funds to be transferred to other countries? If Ireland is a borrower, has its loan been productive? Why or why not? Are there any ethical concerns between Ireland and other nations?

List and discuss how the plain view doctrine would apply to the physical space of your bedroom. Identify what can and cannot be searched.

Q- We have discussed the topic “Rationale of Regulations “ in which we talked about the reasons for having regulations in a given country. Rationale of Regulations including issues of monopoly, windfall profits, externalities, social policy, information inadequacies, continuity and availability of services, anti-competitive behavior and predatory pricing, public goods and moral hazard, unequal bargaining power, scarcity and distribution of wealth, rationalization and coordination, and planning.

Examine only one of the above Rationale of Regulations by providing a definition, an example, and a discussion of the role of regulation in solving or controlling the problem.

Use aggregate supply and demand diagrams to explain what would happen to GDP and inflation in the following circumstances. Remember, you start the analysis with AD and AS graphed with an equilibrium PL and Q/GDP. Then an “event” takes place. Determine if it is AD or AS, then shift the curve appropriately. Identify the new Price Level and GDP. Say if equilibrium PL increases/decreases and equilibrium GDP increases or decreases.

Consumers decide to cut back their savings, and buy more household appliances.

Tornadoes destroy many factories in the country, while a severe drought ruins many crops.

Miraculous new technological developments raise productivity in manufacturing.

Because of worries over the deficit, the government sharply curtails its expenditures on social programs.

Suppose in Vietnam a worker can produce either 16 units of cloth or 2 bicycles while in China a worker can produce either 20 units of cloth or 5 bicycles.

1. Suppose each country has 1,000 workers. Currently, each country devotes 40 percent of its labor force to cloth production and 60 percent to bicycle production. What is the output of cloth and bicycles for each country and what is the total output of cloth and bicycles between the two countries?   

2. Suppose each country specializes in the production of the good in which it has a comparative advantage. What is the total output of cloth and bicycles in the two countries?   

3. Provide a numerical example to show how Vietnam and China can both gain from trade. Assume that the terms of trade are established at 6 units of cloth for 1 bicycle.

Prebisch - Singer hypothesis?

When the price of fresh fish increases 10%, quantity demanded is unchanged. The price elasticity of demand for fresh fish is Your answer: perfectly inelastic b perfectly elastic c inelastic d unitary elastic