1. In a 2-good (food and cloth) specific-factors (Ricardo-Viner) model, find the impact in a small economy of an increase in its overall supply of labour on the following:

a. The equilibrium wage rate

b. The return to cloth-specific capital, KC

c. The return to food-specific capital, KF

d. The output of food and cloth You may assume that relative prices are fixed by trade and so remain unchanged in this exercise.

Explain as to how the supply chain flows can influence the success of failure of a firm such as Colgate-Palmolive.

SUPPLY CHAIN MANAGEMENT

According to the crowding out model, ending discrimination would lead to efficiency gains. Explain how.

An investor wishes to measure the investment risk presented by an asset which has the following distribution:                   

State   Return   Probability                       

1       10%         0.5                      

2        20%        0.3

3        50%        0.2   

(i) Evaluate any three different measures of investment risk for this asset. Where necessary, you may assume a benchmark return of 25%.     

(ii) State two key properties of Value at Risk (VaR).

do an Internet search of the famous words "irrational exuberance" and read a few articles. Post links to the articles and provide additional input. Here are a couple of questions to guide the discussion:

1. What do you think Greenspan meant by the term "irrational exuberance"?
2. Are/were the markets irrational?
   
   MINIMUM 10 SENTENCES PLEASE

Briefly explain what is the market challenger, and what are the strategies of a market challenger?

What is fiscal and monetary policy? Who implements these policies? Suppose a country has high inflation. What kind of fiscal and monetary policy do you suggest? Explain why.

Consider a nation with a marginal propensity to consume of 0.75.

a.

What will its marginal propensity to

save

be?

b.

What would happen to its consumption (give the direction and size of the effect) if

taxes (T) were to increase by 100, assuming th

at real aggregate income is

unaffected? What would happen to private saving? To public saving? To national

saving?

c.

Suppose, instead, that government purchases (G) increase by 100 while taxes

remain unchanged. Assuming that aggregate income is unaffected,

what would

happen to consumption? What would happen to private saving? To public saving?

To national saving?

Questions1:

Discuss, in detail, the difference(s) between the concepts of international marketing and domestic marketing. Explain, briefly, why and how would multinationals firms adapt their products to foreign markets. Support your answer with related example

[LO1] [ [15 Marks]

Differentiate between management researcher and academic researcher.

What are the main reasons behind clustering?

Question 1:  

Consider that society’s resources are used efficiently, and you have a combination of goods and services that can be produced. Explain the Production Possibility Frontier in detail, use the drawing to give a clear picture.

Question 2:  

Define the meaning of the following concepts; use your language to express the meaning: (LO, 1/ 10 Marks

a)Positive Economics  

b)Normative economics  

c)Marginalism

d)Efficient markets

e)Factors of production

f)Consumer Goods  

g)Scarcity and Choice

What are the main characteristics of the old and new economy?