a. Show, stating all required assumptions, that the growth rate of efficiency in any

economy can be calculated as (where z = Z/L) (In malthusian economy)

gA = gy - agk - cgz

b. Show that the result in part (a) above implies that the growth rate of efficiency in

Malthusian economies over the long run is given by

gA = cgN

where c is the share of land rents in all incomes, and gN is the population growth rate.

10. Consider a market in which there is a monopoly manufacturer and a mo nopoly retailer. The manufacturer M makes an input for a marginal cost of 20 per unit. This input is sold to the retailer R, who then sells to the final goods market (to the end user). The retailer has no costs of its own (other than any price charged for the input by M). The final market demand is given by P = 200 – q. Assume that both firms act to maximise their own profit (and price discrimination is not feasible). The Manufacturer charges the Retailer t per unit per unit, and the retailer charges the fi nal consumers pR (and sells quantity qR). What is the loss from the two firms acting like separate profit maximisers (compared with the profit maximising outcome)?

a. 75

b. 125

c. 250

d. 375

*e. None of the above

Suppose Rialto is the only movie cinema in a small college town, so it is essentially a monopoly for the local movie market. They charge a certain price P for a monthly pass. There is an overall demand curve for movie passes, given by P=900−4Q However, demand in the town has two distinct consumer groups: adults (A) and students (S). The demand for the whole group of adults is given by P=1200−8QA and the inverse demand for students is given by P=400−2QS Assume for simplicity that the constant marginal cost MC(Q) of showing a movie is 20 and there are no additional fixed costs.

(a) Suppose everybody can easily get a fake student ID and there is no way for UMovie to differentiate one group of consumers from another. As a result, the cinema is forced to charge a single price for both groups. Depict this in a figure.

(b) Compute the optimal quantity and price charged by UMovie, as well as total costs and profits. Under this price, who will go to movies? Remember the firm's production rule. Show these values in the figure.

(c) Suppose UMovie has spent $M > 0 to install a machine that can detect very accurately whether a student ID is fake. As a result, the cinema is able to charge each group a different price. Compute the optimal prices for the two groups of consumers.

(d)Depict the demand curve of each group of consumers in a diagram (the same or two different).

Examine the fiscal policies in place at the start of your specific time period of 2000-2010 in relation to their effects on macroeconomic issues. For instance, consider level of government spending, taxation, subsidies, unemployment benefits, and so on.   

Analyze new fiscal policy actions undertaken by the U.S. government throughout the time period during 2000-2010 by describing their intended effects, using macroeconomic principles to explain the actions.  

Explain the impact of the new fiscal policy actions on individuals and businesses within the economy by integrating the macroeconomic data and principles.

What is the current level of income inequality in the United States? What do you think is more important to focus on when considering inequality: income inequality or wealth inequality? Justify your answer.

Considering the Philips Curve as ? = 0.02 − 0.6 (?−0.05), and the government announces that it implements an expansionary monetary policy:

• • E1) Describe the Locus Critique. ( 5 points)
• • E2) Considering the Locus Critique, do you think that the above Philips Curve is a good equation to study the relationship between inflation and unemployment? Why? Explain it. ( 5 points)

Analyzing the 2008 Financial Crisis , a.k.a. The Great Recession

Reflect within the context of the class (i.e. macroeconomics). In other words, using your "macroeconomic lens" describe what you observe about the 2008 Financial Crisis and its impact on the economy.

Expected Word Count:

• 250 initial post

Which of the following is most likely to shift the demand curve for electricity to the left?

Sugar and honey are viewed as substitutes for each other in many cooking applications. If the price of sugar rises, we would expect the:

The long-run equilibrium condition for perfect competition is:

ou have learned that earnings functions are one of the most investigated relationships in economics. These typically relate the logarithm of earnings to a series of explanatory variables such as education, work experience, gender, race, etc. (a) Why do you think that researchers have preferred a log-linear specification over a linear specification? (b) To establish age-earnings profiles, you regress ln(Earn) on Age, where Earn is weekly earnings in dollars, and Age is in years. Plotting the residuals of the regression against age for 1,744 individuals looks as shown in the figure: Do you sense a problem? (c) You decide, given your knowledge of age-earning profiles, to allow the regression line to differ for the below and above 40 years age category. Accordingly you create a binary variable, Dage, that takes the value one for age 39 and below, and is zero otherwise. Estimating the earnings equation results in the following output (using heteroskedasticity-robust standard errors): = 6.92 – 3.13 × Dage – 0.019 × Age + 0.085 × (Dage × Age), R2 = 0.20, SER = 0.721. (38.33) (0.22) (0.004) (0.005) Sketch both regression lines: one for the age category 39 years and under, and one for 40 and above. Does it make sense to have a negative sign on the Age coefficient? Predict the ln(earnings) for a 30 year old and a 50 year old. What is the percentage difference between these two? (d) The F-statistic for the hypothesis that both slopes and intercepts are the same is 124.43. Can you reject the null hypothesis? (e) What other functional forms should you consider?

a.) Evaluate the costs and benefits arising from the creation of NAFTA to the Mexican economy?

b.) Does NAFTA strengthen or weaken the world trading system?

1. Consider two countries: Victoria and Senza. Suppose that each country makes only two goods: lingerie and mathematics textbooks. In a single year, Victoria can use all of its resources to produce either 1,000 tons of lingerie or 2,000 tons of textbooks. In the same period, Senza can use its resources to produce either 500 tons of lingerie or 1,500 tons of textbooks. Use this information to respond to the following questions. In each case, explain your answer.

a) Which country has comparative advantage in textbooks? In lingerie? (15%)
b) Suppose that, prior to trade, Victoria makes 500 tons of lingerie and 1,000 tons of textbooks, while Senza makes 250 tons of lingerie and 750 tons of textbooks.
If they trade, and Senza gives Victoria 300 tons of textbooks in exchange for 125 tons of lingerie, then would this constitute an improvement (i.e. could each country consume beyond its Production Possibilities Frontier)?

4. Taxes paid for a given income level

Charles is getting ready to do his taxes. He is single and lives in San Diego. Charles earned $300,000 in 2011. He reviews the following table, which shows the IRS tax rates for a single taxpayer in 2011.

Based on the IRS table, Charles calculates that his marginal tax rate is ______ when his annual income is $300,000.

Charles calculates that he owes ______ in income taxes for 2011.

Charles then calculates that his average tax rate is ______  , based on the annual income level and the amount of taxes he owes for 2011.

After figuring out what he owes in taxes in 2011, Charles decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $2,000 of taxable income from the federal government.

The maximum amount that Charles is willing to pay to learn this strategy and reduce his taxable income by $2,000 is ____ . (Hint: Sheltering some income means finding a legal way to avoid being charged income tax on that income. For example, someone who has $50,000 in income and shelters $10,000 pays income tax on only $40,000.)

The local bank pays 5% interest on savings deposits. In a nearby town, the bank pays 1.25% per quarter. A man who has $4000 to deposit wonders whether the higher interest paid in the nearby town justifies driving there. If all money is left in the account for 3 years, how much interest would he obtain from the out-of-town bank?

After reading Chapters 7 and 8, conduct research on GATT, WTO, and NAFTA. First, explain what GATT and WTO do for countries around the world. Then go onto elaborate on NAFTA, the countries involved, and what proposed changes Trump has suggested be made to the agreement. Be sure to provide the history of these agreements and why they came to be. Finally, provide details as to who are the true winners and losers in the NAFTA agreement even though its initial intention was to ensure the equality of all countries involved.

Next, do a bit of research and highlight why China has taken such an interest in investing in Africa. Is it because of the resources Africa has, the potential relationships that can be formed, or something else? Your text states that resources and even proximity play roles in why some countries participate in FDI with other countries. Why is there hesitation and criticism for China heavily investing in Africa? What type of impact do some think will occur for those countries in Africa that are receiving the FDI? Do they think it will be positive or negative? Why?