What are 2 reasons for using quotas over tariffs?  Explain 3 types of tariffs (nominal tariff, effective tariff rate, tariff-rate quota).   Explain.

What kind of theory of business ethics be applied to online Privacy issues

A commercial bank has $800 of deposits as the only liabilities (excluding capital). Its desired reserve ratio is 20% and it does not want to hold any excess reserves. The financial regulatory authority requires it to have a minimum capital of 20% of assets. The commercial bank holds 30% of its assets as government securities. Assets that are not held as reserves or securities are lent out.

a) Assume the bank does not hold any capital in excess of the minimum required by the regulator. Calculate the amount of assets. And write down the balance sheet of the commercial bank.
b) Suppose there is a deposit withdrawal of $100. Assuming the bank cannot further change any of its liabilities (including capital), and it still holds 30% of its assets as government securities, write down the new balance sheet after the desired reserve ratio is satisfied again.

c) Given the situation in b), how much of bad loan loss would cause bankruptcy?

Consider the monetary model of the exchange rate. Using the equations EH/F = PH / PF and P = M / L∗Y state what happens to the home currency when there is

a) an increase in foreign real income

b) an increase in the foreign money supply

c) an increase in the domestic demand for money

You should use the words ’appreciate’ or ’depreciate’.

What do these equations look like when you transform them into growth rates?

Assume that all production of an essential (but reasonably priced) consumer product is moved to a third world country, to take advantage of lower labor and raw material costs. Almost everyone purchases modest amounts of this item on a periodic basis. Answer the following questions (one to four sentences each).

1. Who will benefit from this development (other than the shareholders and managers of the firm)? Hint: You might want to draw a supply and demand graph for this consumer product. Please explain.

2. Who will be hurt by this development? Please explain.

3. Assume that (from the perspective of society) the marginal benefits of this policy exceed the marginal costs by a wide margin. Why is it still possible that public opinion could turn against this policy? Please explain.

The inverse demand is given by P=240-Q. The discount factor is R=0.9, and marginal production costs are initially $120.
a. Calculate the market price, output and profits (if any) on the assumption that the market is currently: i. Monopolized ii. A Bertrand duopoly iii. A Cournot duopoly.
b. Suppose that a research institute develops a new technology that reduces marginal cost to 60.
i. Confirm that this is not a drastic innovation in the Bertrand case.
ii. Calculate the new market equilibrium price, output and profits for the monopolist and each duopolist given that in the duopoly case the innovation is made available to only one firm.
iii. How much will be the willingness to pay for this innovation for I. The monopolist II. The Bertrand duopolist III. The Cournot duopolist.

Describe 2 reasons that countries enforce tariffs.

Describe the 3 most commonly used tariffs.

Which type of tariff would be most likely applied when a country seeks to increase revenue?

Discuss Factors that make it congenial or agreeable for a group of nations to start a process of Economic integration?

Cite the sources consulted and include the references at the end if there is so.

8 According to marginal analysis, the optimal or efficient quantity of personal computers is the quantity at which the

marginal benefit of the last computer produced is zero.

marginal benefit of the last computer produced equals the marginal cost of the last computer produced.

marginal cost of the last computer produced is zero.

total benefit of all computers produced equals the total cost of all computers produced.

average benefit of all computers produced equals the average cost of all computers produced.

31 If chicken alfredo is a normal good and consumer income decreases, then ceteris paribus the

quantity demanded for chicken alfredo will increase.

quantity demanded of chicken alfredo will decrease.

demand for chicken alfredo will remain constant.

demand for chicken alfredo will increase.

demand for chicken alfredo will decrease.

32 If wine and cheese are complements in consumption (and independent in production), then a decrease in the price of cheese will, ceteris paribus,

decrease the demand for wine.

increase the quantity demanded of wine.

increase the demand for wine.

decrease the demand for cheese.

increase the quantity supplied of wine.

33 According to the law of supply, a(n) _____ in the price of gas will _____, ceteris paribus.

decrease, increase the supply of gas

decrease, increase the quantity demanded of gas

decrease, decrease the quantity supplied of gas.

increase, decrease the quantity supplied of gas.

increase, increase the supply of gas

34 A (short run) supply curve slopes upward because of the

law of decreasing opportunity cost

law of diminishing marginal returns (marginal utility)

law of increasing opportunity cost

law of demand

income and substitution effects

35 Which of the following would increase the supply of cheese, ceteris paribus?

An increase in the price of cheese.

An increase in the demand for cheese.

A decrease in the number of cheese producers.

An increase in the wages of cheese production workers.

A decrease in the price of ice cream, assuming that ice cream and cheese are substitutes in production.

In 250 words What are the differences between optimistic and pessimistic views of the world? What are the benefits of each viewpoint? Which do you embrace? Why? please type

Cisco, Inc., has a proposal from the Engineering Planning Division to invest Cisco retained earnings in the design, testing, and development of the next generation of smart grids useful in the Internet of Things (IoT) environment. The initial investment projection is $4,000,000 in year 0, $2,100,000 in year 3, and $87,320 in years 11 and beyond. At i = 10% per year, calculate the infinite-life equivalent annual cost in years 0 through infinity of the proposal.

The infinite-life equivalent annual cost is determined to be $  .

This week, we cover Trade and Externalities. Choose whichever topic you found of most interest (trade OR externalities) and respond to the following questions. Note: Each response should only be 3 - 5 sentences.

1. What surprised you most while learning about this topic, and why?
2. What was the most important thing to you that you learned from this topic? Why do you think it's most important?
3. What one question remains uppermost in your mind?
4. How is what you learned this week relevant to you in your life (outside of class!)
5. What made you curious about this topic – what did you want to learn more about and why?

Consider a market with demand given by Q = 10p^−2 . A firm has a constant MC = 2 with no other fixed costs. Use the Lerner Index rule to answer the following questions.

1. (10 points) Suppose the government grants this firm an exclusive monopoly in this market. Find the price-cost margin and the profit-maximizing price.

2. (10 points) Suppose that, in addition to the firm's output, the government always produces output QG = 2p^ −2 where p is the price charged by the firm. Show that the market price and the quantity do not change.

Over the past few decades, Boeing’s chief competitor was Airbus. Recently, smaller firms have entered the market. One of these firms is Embraer. Embraer recently had one of the best-selling business jets, the Phenom 300. Though, there are competitors, Boeing has led the market in terms of pricing.

1. What type of market structure is this and what model might we use to analyze it?

These companies have the following total cost functions with A = Airbus, E = Embraer and B = Boeing:

TC_A= $1,500,000 + $30,000,000Q_A + $500,000Q_A²

TC_E= $484,000,000 + $10,000,000Q_E + $250,000Q_E²

TC_B= $3,000,000,000 + $2,000,000Q_B + $55,000Q_B²

The industry demand curve for this type of jet aircraft is:

Q = 950 - 0.000015P

2. What are the supply functions for Airbus and Embraer? (Hint: these firms operate as price takers)

3. What is Boeing’s demand function? (Hint: Boeing’s demand function is the industry demand curve minus the following firms’ supply or Q_B= Q – Q_A– Q_E. Use the answers you found in question 2)

4. What is Boeing’s profit-maximizing price and output.

5. What are Airbus’ and Embraer’s profit-maximizing output levels?

6. Is the industry in short-run equilibrium, i.e. does firm supply equal total demand?

7. Which firms are earning an economic profit? Which ones are earning a normal rate of return? How do you know?

8. Is the industry in a long-run equilibrium? Why or why not?