An article in the Wall Street Journal on the parking problems at​ Tesla's Fremont, California factory notes​ that: "Tesla has tried to encourage alternatives to​ driving, such as​ biking, public transportation and the shuttle buses provided from around the Bay Area​ ..."

If Tesla auctioned off the right to park in its​ lot, would the firm need to provide other encouragement for employees to use alternative means of​ transportation? Briefly explain.

A.

​Yes, it would remain necessary to provide alternatives to driving because the price of parking spaces would rise.

B.

​No, it would not be necessary because the spaces would be allocated to those most willing to pay for them.

C.

​No, encouraging the use of transportation alternatives would not be necessary due to a shortage of spaces.

D.

​Yes, encouraging driving alternatives would still be necessary because the supply of spaces would be unchanged.

Is the most economically efficient allocation of parking spaces in​ Tesla's lot likely to result from auctioning off the right to park or from keeping parking free while encouraging employees to use alternative means of getting to​ work? Briefly explain.

A.

Keeping parking​ free, because no one has to pay anything for parking.

B.

Keeping parking​ free, because those with less income may get a parking space.

C.

Auctioning off the right to​ park, because the people who get the parking spaces would be determined randomly.

D.

Auctioning off the right to​ park, because those who benefit the most from the parking spaces would receive them.

Given your answer​ above, why​ hasn't Tesla considered charging employees for parking in its​ lot?

A.

Employees may consider this method to be unfair.

B.

Tesla workers are not rational.

C.

Managers may believe that they should not be charged for parking.

D.

Charging employees for parking is too​ time-consuming.

Explain the following four types of motivations for individual economic behavior: self-interest, altruism, reciprocity, and group-oriented behavior. What role does each type of motivation play in individual economic behavior?

Use this book: Understanding Capitalism: Competition, Command, and Change 4th Edition

Consider the 2 × 2 production model. Production functions are given by: f1(z11, z21) = (z11)^α1 · (z21)^1−α1 f2(z12, z22) = (z12)^α2 · (z22)^1−α2 where αj ∈ (0, 1) for all j = 1, 2 and zij ≥ 0 for all i = 1, 2 and j = 1, 2. Show mathematically that if the set of technologically efficient factor allocations (the Pareto set) ever cuts the diagonal of the Edgeworth Box, then it must coincide with the diagonal.

Solving the following system of equations, which is a model of price and quantity determination in a one-good, widget, market:

Q_d = 100– 10P + 2G …..(1)

Q_s = 60 + 20P - 3N……….(2)

Q = Q_d = Q_{s………………… ..(3)}

                           G= 11 …………………………(4)

                           N= 6 …………………………..(5)

(i)                     Find the equilibrium values of P and Q.  

(ii)               If G is up by 2 and other things are equal, What will be the new P and Q.

(iii)             If N is up by 2 and other things are equal, What will be the new P and Q.

Explain how the Marxist ideal that “people work for societal good rather than personal gain” is at odds with Smith’s Liberal view of economics.

Imagine you are a policy maker confronted with the options of increasing government expenditures (G) versus lowering taxes (T) in the same amount during a recession. Which alternative would you support and why? Answer briefly with one or two paragraphs.

At the beginning of 2018, the aggregate output in Atlantis was $15 billion and the population was 3 million. During 2018, aggregate output rose by 3.5%, the population rose by 2.5%, and the aggregate price level remained constant. For all calculations, calculate to 2 decimal places.

a) What was the aggregate output per capita in Atlantis at the beginning of 2018?

b) What was aggregate output in Atlantis at the end of 2018?

c) What was the population in Atlantis at the end of 2018?

d) What was aggregate output per capita in Atlantis at the end of 2018?

e) What was the annual growth rate of per capita output in Atlantis during 2018?

Is there extensive empirical evidence supporting the Lewis two-sector model? Give examples and details on those examples for the relationship between growth and inequality.

what are the microeconomic and macroeconomic indicators of Guyana, Barbados and Cayman

Consider the following marginal benefit (demand) curves of two individuals for a certain good: MB_A(q) = 100 – q and MB_B(q) = 300 – q.

Consider the Marginal Private Costs of providing Fireworks in The Park, MC(q) = 50 + q.

1. Find q^M, the amount of Fireworks in the Park provided by the Market, when individuals provide the good with no co-operation and act only in their self-interest.
2. What is the efficient level of Fireworks in the Park, q*?
3. Person B brings a friend to the park (person C), with the same MB curve as theirs (MB_C = 300 – q). Find the new quantity provided by the Market (q^M) and the new efficient level of Fireworks in the Park (q*).
4. Despite being visually appealing, fireworks are known to cause negative externalities such as noise pollution and increased deaths by heart attacks in dogs. We estimated the marginal external costs of Fireworks in the Park, MEC (q) = 70 + q. What is the new efficient level of Fireworks in the Park? Consider the MSB curve found in part f, which includes person C. How does this new efficient allocation compare to the Market equilibrium, q^M, found in f?

You have decided that your coffee habit has become too expensive! You currently purchase a large speciality coffee from the local cafe twice a day. Each coffee costs you $4.74. You have decided to purchase a $105 high-end coffee maker so you can make your coffee at home. After the cost of coffee, syrups, whip cream, etc., the cost of making your coffee at home is $1.81. By making your own coffee, how much money do you save over the first year?

Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important.

1. The transaction of a consumer who buys a “meal-kit” sent to their home adds less to GDP than a similar consumer who goes out to a restaurant for the same meal.

2. When Canada legalized cannabis consumption it likely led to an increase in Canadian GDP and an increase in general economic well-being.

3. In an economy with no government and no foreign sector, an increase in the marginal propensity to consume would result in a decrease in the size of the aggregate expenditure (AE) multiplier.

4. When inventories fall below planned levels, firms increase production so national income rises.