Define bank capital and key measures of bank profits and returns.

Consider the following Data: MPS = .2 Autonomous spending is 100 What is the consumption function?

The glossary assignment is divided into three parts and spread out throughout different units. The second covers terms from F to L. Please use your online research skills to define each term in one to three sentences and provide a brief example in your own words.

Write in your own words and a clear example. You will receive zero if you merely cut and paste a definition. Use the examples listed above to guide you regarding length and complexity.

Treat this as preparation for the unit test.

• Mixed Economy
• Monopoly
• NGO
• Opportunity cost
• Protectionism
• Recession
• Recovery
• Sanction
• Trade Balance
• Trading Bloc
• Trade Surplus
• Trade War

Suppose the law changes such that individuals can contribute twice as many dollars per year to their Individual Retirement Accounts and avoid paying taxes on this money until they retire. This will cause a shift in the                            [ Select ]                       ["supply of", "demand for"]         funds curve and as a result the equilibrium interest rate will                            [ Select ]                       ["increase", "decrease"]         .

Suppose the law changes and the corporate income tax rate has been cut in half. As a result we can expect a shift in the                            [ Select ]                       ["supply of", "demand for"]         funds curve and as a result the equilibrium interest rate will                            [ Select ]                       ["increase", "decrease"]         .

Suppose both of these changes happen at the same time. As a result we can expect the equilibrium interest rate to                            [ Select ]                       ["increase", "decrease", "uncertain"]         and the equilibrium quantity of funds supplied and demanded to                            [ Select ]                       ["increase", "decrease", "uncertain"]         .

Suppose an individual has a job that pays $50,000/year. With a 5% probability, next year their wage will be reduced to $20,000/year.

a. What is their expected next year?

b. Suppose that the individual can insure themselves against the risk of reduced consumption next year. What would be the actuarially fair insurance premium?

Differentiate between command-and-control and market oriented solutions to negative externalities. Provide an example of each employed in pollution control.

1. Explain how a central bank is different to the other financial institutions such as Savings and loans associations, Credit unions, contractual savings institutions, and particularly commercial banks.
2. Explain how (i) open market operations (ii) reserve requirements and (iii) the discount rate can be used to stimulate spending in an economy in an attempt to boost economic growth.
3. An economy is suffering from a high and rising inflation rate. Explain how (i) open market operations (ii) reserve requirements (iii) the discount rate and (iv) moral suasion may be used to dampen the inflation rate.
4. Discuss arguments for and against the independence of the central bank.

3)      Include minimum and maximum cardinalities for each relationship shown in the ERD, using the Dia program.

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.