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

About 85% of federal spending goes to the following areas, most of which are widely supported by the American public: Social Security and unemployment, Medicare and health, the military, interest on the debt, and veteran’s benefits. Is it possible to balance the budget without making major cuts in these areas? If not, what trade-offs do politicians face when making cuts to popular programs? Who benefits from the cuts and who is hurt?

What is your observation regarding the economy during the current crisis of COVID 19? Is there any instrument of Islamic financial products that you think can help to lessen the economic burden faced by some people during this crisis? Explain.

Imperfect Competition — End of Chapter Problem

Suppose that the inverse market demand for pumpkins is given by ?=$10−0.05?. Pumpkins can be grown by anybody at a constant marginal cost of $1.

a. If there are lots of pumpkin growers in town, so that the pumpkin industry is competitive, what will be the equilibrium price (P), and how many pumpkins (Q) will be sold?

P = $

Q =

b. Suppose that a freak weather event wipes out the pumpkins of all but two producers, Linus and Lucy. Both Linus and Lucy have produced bumper crops and have more than enough pumpkins available to satisfy the demand at even a zero price. If Linus and Lucy collude to generate monopoly profits, how many pumpkins will they sell, and what price will they sell for?

Q =

P = $

c. Suppose that the predominant form of competition in the pumpkin industry is price competition. In other words, suppose that Linus and Lucy are Bertrand competitors. What will be the final price of pumpkins in this market—in other words, what is the Bertrand equilibrium price? At the Bertrand equilibrium price, what will be the final quantity of pumpkins sold by both Linus and Lucy individually and for the industry as a whole?

P = $

Q_Linus =

Q_Lucy =

Q_industry =

d. In this scenario, Linus and Lucy will each earn

zero economic profits.

e. Suppose Linus lets it be known that his pumpkins are the most orange in town, and Lucy lets it be known that hers are the tastiest. The results you found in parts c and d would continue to hold to the extent that customers are

willing to substitute Linus's and Lucy's pumkins for one another.

f. Suppose Linus could grow pumpkins at a marginal cost of $0.95. What would be Linus's price and quantity? (Hint: assume Linus will price his product so as to undercut Lucy by the least amount possible.)

P_Linus = $

Q_Linus =

g. In this scenario, Lucy's output would

fall to zero.

Please explain how to calculate Total Social Welfare (total surplus) with and without the presence of an excise tax, without the use of imagery.

Cryptocurrency, such as Bitcoin and Ethereum, is now a household name built on Blockchain Technology. This technology has potential application in some sectors of our economy such as insurance, healthcare, supply chain, real estate and even in the voting system. Consider the following statement and then argue for or against it.

“Use of Blockchain technology will change our economic system as we know it today.”

As a national manager for Southwest Airlines you have recently undertaken a survey of the number of passengers per flight on the Boston-Phoenix route that you service. The survey was conducted over five successive months. The data collected included the round-trip fare for an economy-class flight, the average annual per capita income of people who fly the Boston-Phoenix route, and the average passengers per flight on both Southwest and American. Assume that all other factors (the price charged by other airlines, the size of planes flown, etc) have remained constant.

Fill in your answers in the allotted spaces. For parts a, b, and c. Remember that the key to calculating an elasticity is to find the pure effect by holding everything else constant (or have no other variable change). This influences which observations you will use in calculating the elasticities.

a. On the Boston-Phoenix route, calculate an estimate of the price elasticity of demand for Southwest economy seats. Show your work and explain.

b. For the same route determine the income elasticity of demand for Southwest economy seats. Show your work and explain

c. Also calculate an estimate of the cross-price elasticity of Southwest flights with respect to American flights on the route. Show your work and explain

d. Based on your price elasticity estimate, would Southwest obtain higher total revenue by lowering its price? Explain

e. Based on your elasticity estimates, are Southwest and American flights substitutes or complements? Explain

f. Are Southwest’s economy seats a normal or inferior good?Explain.

These last two questions go beyond the estimates that you have calculated.

g. If consumers had been given more time to adjust to price changes, would you expect the price elasticity of demand to be more inelastic or more elastic? Explain

h. Consider the price elasticity of demand for the category flights on all airlines between Phoenix and Boston. Would that price elasticity be more elastic or more inelastic than the elasticity for just Southwest flights? Explain