A monopolist faces 300 customers divided into 3 different groups:

1. High-Demand customers each have a demand function given by

Q_H = 18 - P.

2. Medium-Demand customers each have a demand function given by

Q_M = 16 - P.

3. Low-Demand customers each have a demand function given by

Q_L = 14 - P.

There are 100 customers of each type (N_H=N_M=N_L=100).

The marginal cost of producing (one unit of) the product the firm is selling is constant at MC = $4. There is no fixed cost.

1. Determine the optimal two-part tariff for this firm and the resulting profits (it can only select one two-part tariff that is applied to all customers).

2. Do the same for N_H=N_L=50 and N_M=200. Explain briefly the difference between the results in (1) and (2).

1. At the current level of output, suppose the actual price level is less than the price level that individuals expect (i.e., Pt < Pet).

We know that:

A. output is currently below the natural level of output.

B. the interest rate will tend to rise as the economy adjusts to this situation.

C. the nominal wage will tend to increase as individuals revise their expectations of the price level.

D. any subsequent reduction in the aggregate price level will cause an increase in the real money supply and a rightward shift in the aggregate demand curve.

E.none of the above

2. Suppose the minimum wage increases. Given this event, we would expect which of the following to occur?

A. no change in the real wage in the medium run

B. an increase in the aggregate price level as output decreases

C. an increase in the interest rate in the short run

D. all of the above

Identify a major national economic problem that needs fixing. Consider how you would measure the relative success of any measure(s) to fix the problem you identified (e.g., more people being put to work, higher household income, fewer people under the poverty level, increased GDP, greater economic growth, higher overall math/science achievement among high school students, lower pollution, etc. - MAKE SURE you come up with a few of your own measures!). Now, propose fiscal and/or monetary policies to fix the problem you've identified and explain IN DETAIL how you believe your policy recommendations would remedy the problem you identified AND how you would measure the relative success of YOUR economic policy recommendations.150-200 words

A university is trying to determine what price to charge for tickets to football games. At a price of ​$22 per​ ticket, attendance averages 40,000 people per game. Every decrease of ​$22 adds 10,000 people to the average number. Every person at the game spends an average of ​$3.00 on concessions. What price per ticket should be charged in order to maximize​ revenue? How many people will attend at that​ price?

Please show which are which above

5.   Refer to the above table and answer the following questions:

      Consumption expenditure is $________

      Investment expenditure is $________

      Government purchases of goods and services is $__________

      Net exports is $_____________

      GDP is $_________________

Liat 3 mental issues that you perceive to be men's issues? Why are these perceived to be men's issues? How might these issues affect women directly or indirectly?

Question 2

1. Contrast “New-Classical ” and “New Keynesian” models on the relationship of money and output in the short run.

2. Appraise the following statement,

1. “Both new Keynesian and new classical economists recommend against using the stabilisation policy to reduce output fluctuations”.
2. “Monetary policies may not able to fine tune the economy due to long and variable lags”.

1. Assume that a country's production function is Y = AK^0.2L^0.8. Population grows at 4 percent and capital depreciates at 2 percent per year. Technology grows at 1 percent a year. Capital is paid its marginal product. A=100 and savings is 20%.

a) What is the steady-state level of capital per effective worker?

b) At the steady-state what is the marginal product of capital?

c) At the steady-state what are the income per effective worker, consumption per effective worker, and investment per effective worker?

14. Betty consumes leisure and food and both are normal goods. a. Show graphically what would happen to the number of hours that Betty will work if she sees an increase non-labor income. b. Show with a graph and explain how Betty’s hours worked can decrease if she sees an increase in wages.

Consider two countries, Violet (Home) and Pink (Foreign), which can produce apples and lemonade. There is only one factor of production (labor). In order to produce a gallon of lemonade, Violet workers need 5 hours, while Pink workers need 10 hours. In an hour, Violet workers can produce 6 pounds of apples, while Pink workers can produce only 2 pounds of apples. Markets are perfectly competitive. Violet’s labor endowment is

L = 60,000 hours, while Pink’s labor endowment is L*= 90,000 hours.

a) What are the unit labor requirements for each product (apples and lemonade) in each country?

b) What is the opportunity cost of a gallon of lemonade in terms of pounds of apples in Violet? And in Pink?

c) What country has a comparative advantage in which good and why?

d) Draw the production possibility frontiers for Violet and Pink, with lemonade on the horizontal axis. What is the slope in Violet? And in Pink?

e) Draw the world relative supply, with the relative price of lemonade in terms of apples on the vertical axis, and the relative supply curve on the horizontal axis

f) Draw a world relative demand curve, crossing the relative supply curve at a point such that the relative price of lemonade in terms of apples is 20 pounds of apples for one gallon of lemonade. What good (or goods) will Violet produce at this price? What good (or goods) will Pink produce at this price?

g) Draw the consumption possibility frontiers for Violet and Pink (in two separate graphs) when there is international trade and the relative price of lemonade is 20 pounds of apples (as in the question above). Are there gains from trade for Violet? Why or why not? And for Pink? Why or why not?

Consider the following macroeconomy. All amounts are in millions (m.) of $; T=net taxes, which are fixed:

C = 750 + .8 Y_D

                                                            I = 1200

                                                            G = 250

                                                            T = 150

                a. This country’s Parliament passes legislation to have a balanced-budget amendment. What will be the value

             of this country’s balanced-budget multiplier (BBM)? Explain. Calculate the changes in the following variables if

             this country’s Parliament increases its G to $550 m: the GBD (govt budget deficit); eqm Y; and (net) taxes, T?    

             Show what this G increase does to the Z-Y space graph.

                b. What is meant by the “Paradox of Thrift” (POT), aka the Paradox of Saving? Why is it a paradox? Go back to the original eqm of part a. Now prove using multiplier analysis that the POT holds in this economy if c_o falls by $200 m. (ceteris paribus, cet. par.) by either calculating S private (S^p) at the initial eqm Y and then calculate S^p again after the attempt to increase S^p OR prove that the POT occurs using the appropriate math. Show what     happens (cet. par.) using the Z-Y space graph.

What are some of the criteria for forecast evaluation? What is Theil’s statistic?

In 2-3 paragraphs, respond to the following - Do you think that minimum wage laws affect overall poverty? Explain.

4. firms that make direct for foreign investment must evaluate such opportunities requiring capital investment very differently from the methods used to evaluate domestics investments. Describes theses differences from both a capital budgeting and country risk perspective.