Market equilibrium ( Assessment task )

Instructions

In this activity you must apply the market equilibrium behavior, social surplus and consumer and producer surpluses.

INSTRUCTIONS:

Please answer the questions below, you should review the rubric that appears at the bottom of the exercises. Please review the module material for more information that you can search in the virtual library. Remember you can search your database, please nothing other than reliable sources of information.

1. What is consumer surplus? Using real data, what information would you need to measure consumer surplus in a particular product?
2. What is producer surplus? Using real data What information would you need to measure producer surplus in a conceto product?
3. What country wins with trade?
4. How does trade influence the production and consumption of each country?

Output produced in one growing season:

Corn Soybeans

Iowa 30 45

Nebraska 40 80

Iowa and Nebraska can both produce corn and soybeans, and can switch between the production of corn and soybeans at a constant rate. The table illustrates the amount of corn or soybeans each state can produce in one growing season. Answer the following questions:

a.)  From the table we know that Iowa has a:

a. comparative advantage in the production of soybeans and Nebraska has a comparative advantage in the production of corn

b. comparative advantage in the production of corn and Nebraska has a comparative advantage in the production of soybeans

c. comparative advantage in both goods and Nebraska has a comparative advantage in neither good

d. comparative advantage in neither good and Nebraska has a comparative advantage in both goods.

b.) From this table, we can conclude that Iowa should specialize in the production of

a. both goods and Nebraska should specialize in the production of neither good

b. neither good and Iowa should specialize in the production of both goods

c. corn and Nebraska should specialize in the production of soybeans

d. soybeans and Nebraska should specialize in the production of corn

c.) At which of the following prices would both Iowa and Nebraska be able to gain from trade with each other?

a. ​1 bushel of soybeans for 1.7 bushels of corn

b. ​2.5 bushels of soybeans for 1 bushel of corn

c. ​3 bushels of corn for 1 bushel of soybeans

d. ​1.8 bushels of soybeans for 1 bushel of corn

1. The coronavirus is currently wreaking havoc on the world economy. There are many reasons for this, so let’s simplify by focusing on just one. Suppose the primary effect of the coronavirus is to create “uncertainty”, which leads investors to increase their demand for “liquidity” (i.e., it increases the demand for money relative to other assets). Use the DD-AA model to show how this would affect the US economy. What happens to US output and the value of the dollar? US policymakers are currently debating whether to respond by cutting interest rate or increasing government spend- ing. Which of these policy responses would Canada favor? Which would China favor? (Hint: The Canadian dollar floats against the US dollar, whereas the RMB is pegged to the US dollar).

what effects government borrowing has on currency?

what does ‘crowding out’ means?

why is some ‘deficit spending’ by government isn't a bad thing?

Case Study Of Estonia:Transition, EU Membership , and The Euro (9-713-479)

Analyze the national diamond over time. What allowed Estonia to upgrade competitiveness faster than many other transition countries?

Please define and describe an investment in economics

Please define mrp, mrc, Vp ( use equation, graph, words )

How does rate of return on capital and cost of capital relate to mrp and mrc?

What is the time preference?   How does the element of time ( or term ) relate to investments?

How Hauwei Might Handle the Latest US Sanctions

Author Name: Klint Finley

Publishing Date: June 21,2019

Publishing Platform: Wired

An article that I found extremely interesting was of a recent issue faced by a business in the United States named Huawei . Its a Chinese telecom hardware company. Huawei is China’s biggest phone maker and has recently been embroiled with the U.S. government concerning security threats. Huawei did business with many American corporations in the USA and provided cellular network gear to many companies in the USA. Yet, there was a security concern that China is using Huawei’s network for surveillance purposes.

That issue was quickly resolved after the U.S. government applied law and Constitution and banned all U.S. companies from doing business with Huawei keeping in mind the issue of national security. Using the provisions of the U.S. constitution, the government added Huawei to a list of companies that are considered a threat to U.S. national security. So Huawei is unable freely acquire U.S. technology and will have to seek U.S. government’s permission to do the same. The provisions of the Constitution with regards to national security have been used to put export restrictions on Huawei as well.

The US has been very concerned about some of these Chinese companies simply being trojan horses for China.

Another interesting area is mergers re international law, thanks for this post. Mergers are not as controversial as they used to be. My guess is that because so many companies compete globally now, we are not as concerned when they grow large!

Is that a good or bad development?

5. Can I apply for Patent protection in multiple countries with one application? Briefly explain your answer.

? Why do economists care about loneliness? What areas of the economy are impacted by loneliness? What are the financial and economic impacts associated with loneliness? What should the Government of Canada do about loneliness, if anything?

Mock Central Bank in Japan

Part 2: What are the current domestic conditions you think are relevant for deciding what to do with the monetary policy instrument?

Cellphone Prices:

Analyzing Cost and Revenue

INTRODUCTION

Cost, revenue and profit functions may take parabolic forms. In many business and economics applications, our most important goal is to maximize revenue, profit or minimize cost. We may be able to find the price or the quantity of goods and services that maximizes profit, revenue and minimizes cost by using the quadratic formula and vertex formula.

The goal of this project is to enhance the understanding quadratic functions and how to find the maximum/minimum.

Question 1: If you have the chance to start a business, what business would you choose? Why?

Question 2: Starting and running a business requires time, effort, hard work and in particular money. What kind of costs do you expect to have to pay in order to start and run your business? Please list them and explain why you need them.

Question 3: Some costs are fixed, which are called fixed costs, such as equipments and buildings. Some cost are variable, which are called variable costs, such as labor and material. Please explain what costs in the Question 2 are fixed costs, and what are variable costs.

In general, the total cost consists of variable costs and fixed costs.

Question 4: In order to keep your business running, you need to make revenue. Revenue is the money that comes into the business from customers. Suppose you know the number of products your business sold and the price you sold them at, how can you calculate the revenue? What strategies could you use in order to increase your business’ revenue?

The revenue of a business may go up and down depending on many factors. For example a business that sells ice cream will likely make more money during hot summer months. The profit of your business is the difference of the revenue and the cost. That is,

Profit = Revenue - Cost.

If the profit is the positive, your business makes money. If the profit is negative, your business unfortunately makes a loss. If the profit is zero, that is the revenue is equal to the cost, it is called the break-even point.  

Suppose that you were the CEO of a giant high technology corporation, Strawberry, Inc, manufacturer of the Strawberry Phone.

Question 5:

This month, you have estimated the demand for the Strawberry Phone to be:

Q = 220 - 4P

where Q is the quantity demanded, and P is the price of a Strawberry Phone.

The cost of producing a phone is constant at $12, which is called marginal cost. The fixed cost that includes the cost spent on the factory, the equipment, among others is $1525. As a result, you have a linear cost function,

C = FC + (MC Q),

Where C is the total cost, FC is the fixed cost, and the MC is the marginal cost, and Q is the quantity as before.

Answer the following questions.

1. What is the price that maximizes the corporation’s profit? (Hint: Profit = Revenue - Cost)

2. At what price does the corporation break even?

Question 6: From the two questions above, create a strategy to lower your cost and maximize your profit for the business you chose in question 1.

Essay: Write an essay that discusses the answers to the questions above include a detailed description of your business ideas and how it is possible to use maximization of quadratic functions to find the maximum profit.

There are many policy proposals aimed at curtailing the high cost of pharmaceuticals and/or encouraging innovation. Briefly analyze the costs and benefits of the following policy proposals: a. The government uses an auction to estimate the private value of patents and then offers to buy out patents at this private value. Most patents purchased would be placed in the public domain. b. The government offers a $5 billion prize to the first drug company that develops a cure for Alzheimer’s disease. c. In order to control the rising costs of new drugs, the government puts a cap on drug prices at $10,000 per month.

1) Which of the following is likely to occur as the result of the law of diminishing marginal utility?

a) Petra's utility from her second apple was less than her satisfaction from her first orange.

b) Hudson enjoyed his second slice of pizza more than his first.

c) Sabine's utility from her first granola bar is greater than Rachel's utility from her second granola bar.

d) Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant.

2) A consumer's utility-maximizing combination of goods is given by the bundle that corresponds to the point on

a) the indifference curve that intersects the horizontal axis.

b) the indifference curve that intersects the vertical axis.

c) an indifference curve that is tangent to the budget constraint.

d) the budget constraint where it intersects one of the axes.

3) Which of the following is not a property of indifference curves?

a) Indifference curves never cross.

b) Indifference curves have a concave shape.

c) Indifference curves slope downward.

d) The farther away from the origin, the higher utility.

e) All of the above are properties of indifference curves.

Note* Please only attempt this question if you know about it. I have seen a sample and it can be calculated without the depreciation amount.

Question: Introduction to Macroeconomics

1. The table given below contains some macroeconomic data for Economy Northland.

Using the information from the table above and your knowledge, calculate the gross domestic product at market price for Economy Northland with the following approaches.

1. Using expenditure approach if it was a closed economy
2. Using expenditure approach if it was an open economy.                                                 
3. Using income approach.