(1) name a branded example, then (2) hypothesize about how you might categorize customers by their different needs, and (3) how the company offers values/benefits to meet those needs for each categorized customers.

• Automobiles (B2C) (20 points)
• Air travel transportation (B2C) (20 points)
• Computer software (B2C) (20 points)

Identified demand and supply shifters for your product. Choose one demand and one supply factor. Sketch two SD diagrams to illustrate how an increase in this factor will shift D or S curves, and what happens to the market P and Q in each case. Explain briefly.

Organic food is grown without synthetic pesticides, chemical fertilizers or genetically modified seeds. In recent decades, the demand for organic products has increased dramatically. The Organic Trade Association reported sales increased from $1 billion in 1990 to $31.5 billion in 2011, more than 90% of which were sales of food products.

Why, then, are organic foods more expensive than their conventional counterparts? The answer could be an application of the supply and demand model. Describe in your own words what factors have affected and will continue to affect the demand and supply for organic foods? Describe any shifts, and make any predictions of what might happen to the prices of organic foods in the future.

In Lenin, why do developed economies export capital? What are the roots of imperialism? How does capitalism give rise to the need for imperialism? To what extent Lenin's theory explains the first half of the 20th century?

Let x and y denote the amount of goods X and Y. Find the demand functions of X (do not need to find that of Y) when your preferences are represented by the utility function U = x + xy + y. Is X normal good? Can you confirm law of demand for X? What is the relationship of X with Y? Answer all of them by using the demand curve you derived.

do you think free trade is really free? What are the likely costs of adopting a free trade regime? Do you think governments should play any role in reducing these costs? Why or Why not?

Suppose a firm the following production function: f(x1,x2)=x_1^(1/2) x_2^(1/2)

This firm purchases inputs and sells output in competitive markets. The price of output is $10 per unit and the prices of the inputs x1 and x2 are $10 and $2 respectively. In the short run x2 is fixed and equal to 16. The marginal product for input 1 is: MP1=4/(x_1^(1/2) )

a) What is the profit maximizing level of input 1 for this firm to hire?
b) What is the profit maximizing level of output and the associated level of profits?
c) Derive a function describing isoprofit lines for this firm. Calculate and describe the slope of an isoprofit line for this firm.
d) Suppose the price of input 1 increases to $20. Use your isoprofit function to find the optimal amount of input 1 for this firm to hire.

The table below uses data for the year 2014, adjusted to be comparable to each other. All population values are in thousands.

Instructions: Round your answers to one decimal place.

a. Fill in the blanks in the table above.

b. In part a, you should have found that the unemployment rates of the three countries differ significantly from one another. Select the possible reasons to explain why the countries might have different unemployment rates.

Germany could be in a recession and have higher cyclical unemployment, or .Germany could have more powerful unions. or Germany could have higher (and binding) minimum wages. or Japan could have a more liberalized labour market leading to lower frictional unemployment. or Germany and France could have more generous employment benefits. or All of the choices are correct.

Describe the QE policy. How did the Fed’s balance sheet change? How does QE compare to traditional open market operations?

1- Discuss adverse selection and moral hazard? Give examples

2- Define externality and give examples of positive and negative externalities? Give examples

According to the Law of One Price, assuming there are no transport costs and freecompetition exists, identical goods sold in different locations will have the same price.2Using the concepts of Arbitrage and Supply & Demand, explain why this must be thecase – at least in theory. Your answer should include a diagram. Why doesn’t the Lawof One Price hold in real life?

Consider the following: C= 116 + 0.8 (Y - T) - 1000r

I= 140 - 2000r G= 165 T= 30 + 0.25Y

EX= 100; IM= 110 + 0.2Y

L= 5Y - 100000r M= 60000 P= 100 rrr= 0.2

IS: Y = 1/0.6 (387 - 3000r) Y = 645 - 5000r

LM: Y = 1/5 (600 + 100000r) Y = 120 + 20000r

a) If G increases by 30, is it an expansionary, or a contractionary (pick one) fiscal policy? By how much does the IS and LM curves shift and by how much does Y change?

How much is the crowding out effect? Is the budget balanced? If Fed monetizes the additional budget deficit to eliminate crowding out, do they need to buy bonds, or sell bonds?

b) If the Fed purchases securities worth of 2500; is it an expansionary, or a contractionary (pick one) monetary policy? If there is no leakage of excess reserves, then by how much does it change the money supply? By how much do the IS and LM curves shift and by how much does Y change?

1. Suppose a polluter initially faces marginal abatement curve MAC1 = 320-10E1 , but it has the possibility of investing in R&D and thereby lowering its marginal abatement cost curve to MAC2 = 160 – 5E2. Compute the cost savings to the polluter if it adopts the new technology (MAC2) after the introduction of an emissions tax of $100 per tonne. Compute the cost savings under a standard that is set at 20 tonnes. Explain why the tax provides a larger incentive to innovate than does the standard. (10 points)