1. Why do you think labor standards and working conditions are lower in the low-income countries of the world than in countries like the United States?

2. You have just been put in charge of trade policy for Malawi. Coffee is a recent crop that is growing well and the Malawian export market is developing. As such, Malawi coffee is an infant industry. Malawi coffee producers come to you and ask for tariff protection from cheap Tanzanian coffee.

What sorts of policies will you enact? Explain.

1.)Diagram the effect on the lumber market when it is being impacted by the slowdown in home and other construction. It is also facing increased costs for labor and equipment. Label and title completely.

2.) Diagram the effect on the corn market when grain storage capacity in the United States is almost maxed out. Label and title completely.

3,)Given the following two estimates for supply and demand, solve for the market equilibrium price and quantity. Be sure to show all work.

a. Demand: Q = 890 - P

b. Supply: Q = 50 + 3P

1.) Much of China's economic rise is attributed to its export promotion strategy. Why do economists argue that this strategy has run its course and China needs to readjust its economic policies to continue its economic rise as a nation?

2.) The World Trade Organization (WTO) found in favor of the United States in its complaint against China for dumping light tires into the U.S. market. Explain the rationale for why the WTO came to this finding. Do you agree or disagree with the WTO? Why?

SHORT ANSWERS

CEO pay, in contrast with pay of a company’s employees, has grown exponentially over the last several decades in the United States. Compare and contrast the two points of view below:

a. Because there exists an agency problem between CEOs, the board of directors, and shareholders, the growing pay gap is reflective of and failure of capitalism and free markets.

b. In a globalized world, where scale and scope have created massive companies unseen before the 1990s, the growing pay gap is reflective of the unique productivity of modern CEOs.

Determine if there is sufficient evidence to conclude the average amount of divorces is greater than or equal to 3000 in the United States and territories at the 0.05 level of significance N=52.

1. Clearly state a null and alternative hypothesis
2. Give the value of the test statistic
3. Report the P-Value
4. Clearly state your conclusion (Reject the Null or Fail to Reject the Null)
5. Explain what your conclusion means in context of the data.

Determine if there is sufficient evidence to conclude the average amount of marriages is greater or equal to 2500 in the United States and territories at the .05 level of significance. N=52

1. Clearly state a null and alternative hypothesis
2. Give the value of the test statistic
3. Report the P-Value
4. Clearly state your conclusion (Reject the Null or Fail to Reject the Null)
5. Explain what your conclusion means in context of the data.

Consider the market for new homes. For each of the events listed her, identity which determinants of demand or supply are affected. Indicated also whether the demand or supply increase or decrease. Draw a graph to show the price and quantity of these new homes.

a. People decide to have more children

b. Engineers develop siding that prevents a house from burning down

c. the cost to rent existing homes decreases by $800

d. United States goes to war...

e. China issues additional tariffs on the U.S.

(TCO 8) The International Criminal Court (ICC) was established to bring justice to those committing crimes against humanity, war crimes, or genocide. It was established as an extension of the Rome Statute, and only has jurisdiction over countries that signed this treaty. At this time, the United States is not part of this agreement, and thus does not fall under its jurisdiction. Construct an argument for joining such a treaty, detailing the benefits that international treaties may offer their members and which also addresses the possible public concerns over the loss of national sovereignty.

Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months. The six month interest rate is 8 percent per annum in the United States and 7 percent per in Germany. Currently, the spot exchange rate is €1.01 per dollar and six months forward exchange rate is €0.99 per dollar. The treasurer of IBM does not wish to bear any exchange risk. Where should he or she invest to maximise the return? Support your answer by providing suitable reasons

Assume the economy is operating at potential GDP. In writing and in a graph, explain how each of the events below will affect the equilibrium price level, aggregate output, and the unemployment rate in the United States in the short-run. Be sure to analyze each event independently.

Congress passes a new budget that decreases taxes and increases government spending on infrastructure.

Due to higher interest rates, business firms decrease investment spending.

U.S. productivity declined for the third month in a row.

Due to the glut of oil on world markets, oil prices declined.