A water treatment plant is considering implementing a new treatment technology to treat water at lower costs. They are deciding between two options: · Option A has an expected life of 24 years. It would require a one-time up-front cost of $2.25 million to install and would then yield net benefits of $180,000 at the end of each of the 24 years.

· Option B has an expected life of 24 years. It would require a one-time up-front cost of $180,000 to install and would then yield net benefits of $40,000 at the end of each of the 24 years.

a) Using a real discount rate of 5 percent: · What is the present value of the total benefits of Option A? Option B? (Show your work either here in in an attached spreadsheet.)

· What is the net present value of the total benefits of Option A? Option B? Show your work. · Which project should the treatment plant choose? Defend your answer.

b) If instead of a discount rate of 5 percent, they use a discount rate of 3%, which project should the treatment plant choose? Defend your answer.

University of Missouri, St. Louis

Economics 1002-003: Principles of Macroeconomics.

Discussion Topic 11: Great Recession and Lost Decade

1. How has the US money supply growth since 2008 resulted in an effective ceiling on real interest

rates while allowing the US inflation rate to remain low?

2. What role might the Fed policy have had in creating an effective ceiling on real interest rates, in

terms of paying interest on excess reserves (starting in 2008 for the first time)?

3. Illustrate how an effective ceiling on real interest rates in the capital market causes less private

investment and savings in equilibrium.

4. Describe how the capital market could be “deregulated” such that the ceiling on real interest

rates is eliminated and real rates resume their unregulated equilibrium.

5. What can be the effect of a ceiling on real interest rates internationally, if other countries want

their currency to remain of the same value relative to the US (so they avoid currency

appreciation and a decrease in exports).

Assume also that goods prices are sticky in the short run. Suppose the US central bank wishes to fix the exchange rate at the level before implementing the contractionary monetary policy. At the same time, the US central bank faces the Trilemma. What policy options are available to the central bank?

Suppose that nominal GDP was $9000000.00 in 2005 in Orange County California. In 2015, nominal GDP was $11750000.00 in Orange County California. The price level rose 1.00% between 2005 and 2015, and population growth was 3.75%. Calculate the following figures for Orange County California between 2005 and 2015. Give all answers to two decimals.

a. Nominal GDP growth was %.

Part 2   (1 point)

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b. Economic growth was %.

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c. Inflation was %.

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d. Real GDP growth was %.

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e. Per capita GDP growth was %.

Part 6   (1 point)

f. Real per capita GDP growth was %.

Need a self explanatory summary on the impacts of immigrants on international trade on high tech Industries. Specify a country and explain how the immigrants have impacted the mentioned country's national & international trade.

Briefly explain Greece Crisis with ADAS / ISLM models.

The town of Cypress Creek is preparing to go to war against the American government. To do this, it is building a giant satellite laser! To build the laser, the government of the town will resort to taxation to fund its expenditure. The initial economy of Cypress Creek can be expressed by the following agents:

Consumers, C = 25 + 0.95(Y-T)

Output, Y = 5000

Government expenditures, G = 2000

Taxation, T = 2000

Investors, I = 750-125r

Markets are fully competitive and the equilibrium condition for markets are:

Goods and service market: Y =C + I + G

Financial market: I = S

When it builds the Satellite, government and taxation change to

Government expenditures, G = 4000

Taxation, T = 4000

Hank Scorpio makes another announcement "People of North Haverbrook! We must all work together in this to crush the American Government - I implore you to save you wages! Don't spend!"

m) [2 points] by how much would consumers need to reduce their Marginal propensity to consume

(MPC) such that the market clearing interest rate does not change?

n) [2 points] Who will end up paying the burden of this project? (consumers or investors? And by

how much?)

Fabulous discussion so far, the examples that you guys provided about the decisions that you had to make are great and diverse, and surely demonstrate the dilemma of scarcity and unlimited wants (utilities), as well as the dilemma of weighing costs against current or future actual (or perceived) benefits when making choices.

The society as a whole in any given country faces similar challenges due to the fact that each society has limited resources but has unlimited wants. As strange as it might sound, when countries go to large scale wars, such as WWI and WWII for example, one of the main changes in their “production” is the increase in the production of children, as well as war materials- tanks, planes, bombs, etc. During peace time and economic progress, people produce less children and the opportunity cost of having a child typically rises (more jobs for women with high pay means higher cost of having a child and/or being a stay at home mom). In such, societies alter their production process (production possibility frontier) as the resources and the wants of their people change.

Pick either a country/region outside the United States or a state, a region, or a city within the United States and discuss what is the major good or service that country, region, state, or city produces and why.

Also, what are the challenges that county, region, state, or city faces given its current resources.

3. Assume two firms are currently competing in a market. If one of the two firms wants to try to eliminate the other firm as a competitor, should it undertake a strategy of limit pricing or predatory pricing? Why? In addition, describe the conditions under which the strategy you have selected will be most successful.

Handwrite in text plz not in pic since its hard to read from and plz dont copy answers that were answered before least 2-3 paragraphs

3. George has a monopoly on burrito sales in a small town in Kansas. The burritos cost him a constant $5 each to produce. He faces following demand schedule for his product:

• Under normal monopoly conditions, how many burritos should he produce, what price should he charge, and how much profit can he expect to make?
  • Draw a graph under these assumptions showing (and calculating) producer surplus, consumer surplus, economic surplus and deadweight loss.
• If George was able to engage in perfect price discrimination, how many burritos would he produce, what would his total revenue be, and how much profit would he earn?
  • Draw a graph under these assumptions showing (and calculating) producer surplus, consumer surplus, economic surplus and deadweight loss.
• Is society better off by allowing George to perfectly price discriminate? Defend your answer.

For each pair of goods, decide which would have greater price elastic demand:

1. Cheerios or breakfast cereal?

2. Milk or soda?

3. Salt or rent for your house?

Answer in 7-10 sentences.

What are the assumptions underlying the different growth models? How do these assumptions lead to different policy prescriptions for promoting economic growth from the Harrod-Domar, Solow and endogenous growth models?

Please I need today answer for This question and it is very important and I need solution for this issue with all the details , and help me with all the details.Please write your answer to me by typing, not by handwriting, so that I can read and understand your answer clearly.

This is an essay question . Write no more than 2 pages (maximum). Only legible answers will be considered.

Question. State two features of the Swedish Fiscal framework and explain what they entail.

I only spend time hiking (H) and sleeping (S). For every hour I hike I need three hours of sleep or that time hiking gives me no pleasure. Extra sleep (additional to that) doesn’t make me any happier.

1) Graph 2+ indifference curves

2) Write an equation that could represent the utility function

3) For that utility function, what is the marginal utility for each good?

4) What is the MRS? Do these preferences represent diminishing MRS?

Adjustment Letter: Ben & Jerry’s

In an exciting inside look, you see managers discussing six factors that determine Ben & Jerry’s continuing success. Toward the end of the video, you hear staffers discuss a new packaging material made with unbleached paper. As a socially responsible company, Ben & Jerry’s wanted to move away from ice cream packages made from bleached papers. Bleaching requires chlorine, a substance that contains dioxin, which is known to cause cancer, genetic and reproductive defects, and learning disabilities. In producing paper pulp mills using chlorine are also adding to dioxin contamination of waterways. After much research, Ben & Jerry’s found a chlorine-free, unbleached paper board for its packages, That was the good news. The bad news is that the inside of the package is now brown.

Assume you have been hired at Ben & Jerry’s to help answer incoming letters. Although you are fairly new, your boss gives you a letter from an unhappy customer. This customer opened a pint of Ben & Jerry’s “World’s Best Vanilla” and then threw it out. After seeing the brown inner lid, he decided that his pint must have been used for chocolate before it was used for vanilla. Or, he said, “The entire pint has gone bad and somehow turned the sides brown.” Whatever the reason, he wasn’t’ taking any changes. He wanted his money back.

TASK: Write a letter that explains the brown carton, justifies the reason for using it, and retains the customer’s business.