2. How does the U.S. Government measure poverty? Is it a relative or absolute measure? Provide 2 social or economic indicators (e.g. homelessness, food insecurity, financial insecurity) that illustrate a measure of economic poverty either in the U.S. or New Mexico. Please cite any sources used to illustrate your answer.

The United Kingdom has a drinking problem. British per-capita consumption of alcohol rose 19% between 1980 and 2007, compared with a 13% decline in other developed countries. Worried about excessive drinking among young people, the British government increased the tax on beer by 42% between 2008 and 2012. Under what circumstances will this beer tax substantially reduce the market equilibrium quantity of beer? [Hint: answer in terms of both elasticity of demand and elasticity of supply]

From a position of potential GDP and zero inflation, the government increases defense spending (an increase in G). Describe qualitatively, using words and graphs but no algebra, what happens to GDP, the price level, interest rates, consumption, investment, and net exports. Assume at first that expectations of inflation remain at zero. Then describe how your answers change if expectations of inflation depend on last year’s inflation.

A.) A firm uses capital to produce revenue. The marginal revenue from the first 5 units of capital is as follows: 1st unit has MR 1.72, 2nd unit has MR 1.41, 3rd unit has MR 1.23, 4th unit has MR 1.15, and 5th unit has MR 1.11. If the interest rate is 20%, what is the optimal amount of capital for this firm to borrow?

A. 2

B. 3

C. 4

D.5

B.) Say a household has a wealth endowment of $5 and can use this to either consume (C) or save (S). Savings earn interest of 15% and consumption yields marginal benefit as follows: 1st $1 has MB $1.9, 2nd $1 has MB $1.55, 3rd $1 has MB 1.3, 4th $1 has MB 1.23, and 5th $1 has MB of $1.18. To maximize the sum of earnings on savings and benefit from consumption, the household should pick

A. C = 2

B. C = 3

C. C= 4

D. C= 5

C.) Consider the MB schedule described for the household in question 3, and the MR schedule described for the firm in question 1. If both the firm and household now face an interest rate of 28%, is this a market clearing interest rate? (Check whether supply of funds equals demand for funds)

A. Yes

B. No

C. Impossible to tell

D. none of the above

D.) Consider the MR schedule for the firm given in Problem 1, and the MB schedule given for the household in Problem 3. If the interest rate is now 22%, then in the market for funds there is

A. an excess demand for funds

B. an excess supply of funds

C. an equilibrium

D. none of the above

In 1991 the Zambian Government began economic reforms which included the transport sector. The reforms in the transport sector resulted in the abolishment of parastatal companies like United Bus Service of Zambia, Mulungushi Bus Service, Zambia Airways and Contract Haulage to mention just a few. Your assignment is as follows;

1. Discuss how the reforms have affected the transport sector overall, in the passenger and freight transport. Conduct literature review about the transport reforms from the UNIP government policy perspective to the MMD government transport reforms.
2. Explain how a regulated transport sector and deregulated transport sector operate, what role does government play to ensure that there is transportation equity in the provision of the service.
3. Explain how cartels can distort the market functioning in the transport sector (Demand and supply).
4. Give your general observations about these reforms and what would be your recommendation to improve the current transport sector performance.

The demand for good X is estimated to be Qx d = 10, 000 − 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income, and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, the cross-price elasticity between goods X and Y is:

A. 0.008.

B. −0.08.

C. −0.8.

D. −8.

Write a two page essay explaining why was it difficult for Rosaria Baldizzi to gain her citizenship from the lower east side tenement apartment. ( what was the law back then in the 20th century)

Suppose that each firm in a competitive industry has the following costs:

where qq is an individual firm's quantity produced.

The market demand curve for this product is

where PP is the price and QQ is the total quantity of the good.

Each firm's fixed cost is $_____

What is each firm's variable cost?

q

50+1/2 q

1/2q

1/2q^2

Which of the following represents the equation for each firm's average total cost?

50/q

50+1/2q

50/q+1/2q

1/2q

Complete the following table by computing the marginal cost and average total cost for qq from 5 to 15.

Answer just this past please

The average total cost is at its minimum when the quantity each firm produces (qq) equals _______

.

Which of the following represents the equation for each firm's supply curve in the short run?

q

50−q

1/2q^2

120−1/2q^2

In the long run, the firm will remain in the market and produce if _______.

Currently, there are 16 firms in the market.

In the short run, in which the number of firms is fixed, the equilibrium price is______

and the total quantity produced in the market is_____units. Each firm produces____

units. (Hint: Total supply in the market equals the number of firms times the quantity supplied by each firm.)

In this equilibrium, each firm makes a profit of $______

. (Note: Enter a negative number if the firm is incurring a loss.)

Firms have an incentive to _____ the market.

In the long run, with free entry and exit, the equilibrium price is _____

, and the total quantity produced in the market is_____units. There arefirms in the market, with each firm producing____

units.

The production function of a good is f(L,M)=4L1/2 M1/4, where L is the number of units of labor and M is the number of machines used. The cost of labor is $20 per unit and the cost of machines is $10 per unit. If the firm decides to produce Q units of output, (1) Does the production function exhibit increasing returns to scale? Why? (2) Get the conditional factor demand for L and M. (3) If there is a set-up cost at $1000. Find the total cost of producing Q units of output using the answer from (2). (4) Find the average total costs function and marginal costs function?

About how large is our national debt today, either in total or per U.S. resident?   In addition, describe how the U.S. debt burden has changed since WWII. (Hint on this last part: Use Debt relative to the size of the economy as a measure.)  

For each of the following, describe in words, the shift in the supply and/or demand for bonds for each case. Also, answer the question what happens to price and interest rates under each case (Don't write on paper I need to copy it.)

1. There is an increase in peoples’ wealth
2. People become more pessimistic about stock market returns relative to that of bonds
3. There is an increase in the expected rate of inflation