1 (b) Explain why the supply curve for labor is upward sloping in an industry.

(b) Discuss three basic strategies unions use to raise wages

How will a state and /or federally mandated requirement for late payments not to be considered late impact the bankruptcy laws? What about the many businesses that have been required to close-should there be some consideration given to that fact when many of these business file for bankruptcy? What about those who lose their jobs because their businesses are required to close? What does this do to their lenders and their banks?

How do you think this economic crisis will affect society in the long-term? 

What do you think we as a nation have learned from the 2008-2009 financial crisis?

1. How does the law of one price work? What happens if this law is violated?

Communists believed that their system would be much more efficient than capitalism: They thought that competition between companies was wasteful. Why build three separate headquarters for carmakers. (General Motors, Chrysler and Ford), when you can just build one? Why have three advertising budgets? Why pay for three CEOs? Why not put all the factories together, so that the same engineers can fix problems at all of the plants? Doesn’t one large firm maximize economies of scale? These are all good questions. So why do you think communism turned out to be such an economic disaster, when it sounded like it would be so efficient.

Explain which category each of the following goods falls into (private good, public good, common resource or natural monopoly):

a. Police protection

b. Snow plowing

c. Education

d. Rural roads

e. City streets

1.. Comment on a situation where the following statement does not hold:

In countries with autocratic regimes, MNEs can manage political risk effectively by focusing solely on their relationships with the government.

2. Comment on why the following statement is false. Provide an example

Increasing Intellectual property laws always stimulate innovation and emerging country-catch up.

3.How do MNEs decide on their product/service offering if they are faced with large cultural distance between them and the host-country? What did Starbucks do when they entered to Italy?

4. List indices/rankings that MNEs can use in their investment decisions. Choose 2 mini presentations, Comment on which ones are more relevant vs. less relevant to those 2 mini-team presentations.

Sandra has the following preferences over cookies (x) and tea (y) u(x, y) = min(4x, 2y)

(a) Are Sandra’s preferences complete, transitive, and continuous? Explain/Prove your answer and state the definitions for completeness, transitivity, and continuity. (6 points) 4

(b) Are Sandra’s preferences monotone? If yes, are they strongly monotone or weakly monotone? Define weak and strong monotonicity and then prove your answer. (5 points)

(c) Are Sandra’s preferences strictly convex? Prove your answer (3 points) 5

(d) Graph Sandra’s indifference curves that go through points (2,2), (4,4), (6,6), (8,8). Be sure to label the axis and the utility levels of the indifference curves. (Hint: You should be graphing 4 indifference curves) (5 points)

explain how can different personality attributes shape policy decisions by different leaders?

Use a two country supply and demand diagram to illustrate how, starting from completely free trade, a tariff on wool blankets affects both the domestic and foreign markets for blankets. Label the important geometric areas in your diagram and explain how the tariff changes the consumer and producer surpluses in both countries as well as the well-being of other relevant groups.

Discuss the benefits and costs of FDI from the perspective of a host country and from the perspective of the home country. Describe some of the home country policies that encourage outward FDI. What are the ways in which host governments restrict inward FDI?

Please show work and use the actual equations, not excel ones.

An RV manufacturer estimates that annual profits will increase if a mobile model is built and taken to trade shows to market their product line. A finance and engineering team has looked at the issue and has developed to options:

1.) A large model can be developed at a cost of $75,000, and it should increase annual profits by $25,000 per year.

2.) A small model can be developed for $40,000, but it will only increase annual profits by $14,500 per year.

The salvage value for the large model is $6000 more than the small model after their common useful life of 6 years, and it costs $1,500 more a year to transport to the trade shows. The manufacturer uses an interest rate of %18. Use an annual worth comparison to make a recommendation on which, if either, option should be chosen.

List and Explain the three tools the Fed has at its disposal to change the money supply and therefore change interest rates.