QUESTION ONE [20]

Assume the equilibrium price for rental space for residential occupation is R100/m2 and people seeking homes find this equilibrium price too high. Home seekers therefore lobby the government to pass laws that alter the market outcome by changing the price of rental accommodation. If those seeking rental accommodation are successful in their lobbying, the government will impose a legal maximum on the price at which rental accommodation can be sold. In terms of the above, discuss the effect on the equilibrium price and quantity of rental accommodation in each of the following cases, using diagrams to motivate your answer:

1.1 Government imposes a price ceiling of R120/m2 for rental accommodation. (8)

1.2 Government imposes a price ceiling of R70/m2 for rental accommodation

Many people think that economics is the study of money, financial management, and investment, but that is not the case. Explain with examples what are the main concepts that are the backbone of economic studies?

Is having a trade deficit necessarily bad for the United States? Explain your answer.

Is greed the same as self-interest?

**Must be at least 4-5 sentences

Q3 - List four shift factors of demand and explain how each affects demand.

4. How is a change in a shift factor different from a change in price?

QUESTION 46

1. The Keynesian approach to fiscal policy calls for

   a		budget deficits during periods of inflationary pressure
   b		budget surpluses during periods of high unemployment
   c		a balanced budget despite the state of the economy
   d		tax cuts during recession
   e		spending increases during inflation

2. The income effect of an increase in the price of hominy grits (an inferior good) is a(n)

   	a	decrease in the demand for hominy grits
   	b	decrease in the quantity demanded of hominy grits
   	c	increase in the demand for hominy grits
   	d	increase in the quantity demanded of hominy grits
   	e	new demand curve because everything else is no longer constant

3. The Keynesian approach to fiscal policy calls for

   a		budget deficits during periods of inflationary pressure
   b		budget surpluses during periods of high unemployment
   c		a balanced budget despite the state of the economy
   d		tax cuts during recession
   e		spending increases during inflation

Find a concept on your own from Adam Smith that is not on the web page of this course. You need to identify the page and source of where you found this concept. What prompted Adam Smith to develop this idea. How would you use this concept to explain an observation in your life, an historical event, a cultural norm or institution, a local/international problem, create a solution to an environmental issues, or to create a business opportunity.

Discuss inflation and deflation and how various governments (Federal Reserve/Central Banks) use interest rates (both positive rates and negative rates - give examples of negative rates) to control the economy. Discuss the recent rate cuts by the Fed - do you think that rates should be cut again and why

. Please provide examples and at least two sources with two quotations from your research. (Sources must be after Jan 1, 2020 - must be articles, not a textbook type source). Web Address: If you do not scan or link or attach or give a full citation, I will not be able to grade your submission.

Discuss the market reaction based on the elimination of all import quotas and tariffs.

Which economic policy tools has the Italian government used in 2020 to lower the impact of the pandemic on Italian economy? What policy tools ECB has used to support the Euro-zone? Explain how these tools are expected to help the Italian economy. Would you have used these tools? Explain why or why not?

Which of the 4 functions of management is most vulnerable to being replaced by technology

1) Which of the following would increase GDP?

a. More people walk to work rather than drive cars.

b. Consumers in rural areas switch from buying home heating oil to burning wood they collect on their own land.

c. Farm families grow more for themselves than for the market.

d. Neither the price nor the quantity of television sets changes, but the quality of sets improves.

e. The amount spent on vacuum cleaners does not change, but quality decreases so much that more is spent on their repair.

2) An increase in the demand for peanut butter could be caused by a(n)

3) A surplus of shoes will cause

4) One explanation for the negative slope of the aggregate demand curve is that

a. as prices rise, nominal income falls and so does the demand for real goods and services

b .falling prices make people feel poorer and reduce spending

c. as prices rise, government spends less to drive the price level back down

d. businesses increase spending when inflation is high and rising

e. as prices rise, domestic goods become more expensive relative to foreign goods, which reduces exports

Choose 1 policy to control greenhouse gases at the local level, 1 policy at the state level, and 1 policy at the federal level that would complement one another to achieve greater greenhouse gas reductions than if any of the policies were enacted alone. Briefly describe each policy, type of policy tool, and fully justify why each government has the legal authority to enact this policy.

Someone please give me an idea for this project: Find an article or news release that discusses the value a company has received from using one of the quantitative methods discussed in class. Summarize the source you found, explaining why this use created value for the company in question. Make sure you identify the quantitative method being used and how it is calculated.