Consider the trade relations between the United States and China. Assume the leaders of the countries believe the payoffs to alternative trade policies are as follows. If both countries impose low tariffs, then both countries will gain $60 billion. If both countries impose high tariffs, then both countries will gain $40 billion. If one country imposes high tariffs, the country that has high imposed tariffs will gain $50 billion and the country that imposes low tariffs will receive $20 billion.

Draw the payout matrix describing the payouts given the trade choices by the two countries.

Does the United States have a dominant strategy?

Does China have a dominant strategy?

Using the dominant strategy concept explain your answers. Based on this information, is there a Nash equilibrium for trade policy between the United States and China?

Consider the sample space of all people living in the United States, and within that sample space, the following two events.

??=people who are college graduates=people who are unemployedA=people who are college graduatesB=people who are unemployed

Suppose the following statements describe probabilities regarding these two events. Which of the statements describe conditional probabilities? Select all that apply.

The probability is 4.1% that a college graduate is unemployed.

Twenty‑six point two percent of unemployed people are college graduates.

There is a 6.1% chance that a randomly chosen person is unemployed.

One point six percent of people living in the United States are unemployed college graduates.

Of people living in the United States, 39.4% are college graduates.

There is a 43.9% probability that a person is a college graduate or unemployed.

Analyze symbols for the United States

Choose two symbols (remember, symbols can be MANY things) prevalent in the United States. For each, explain:

1. Who is likely to have a “symbolic predisposition” toward it. How does this predisposition manifest itself?

2.What ideology incorporates this symbol?

Example: The American Flag is a symbol that represents the United States of America in international settings. American citizens are predisposed toward its meaning. It carries a sense of pride for man; while others see it as a symbol to redress government (i.e., by burning it or flying it upside-down). Immigrants often are predisposed to it as well: seeing it as a beacon of hope for a better life. Many groups and ideologies incorporate the flag. Nationalistic ideologies (e.g., militias, political ideologies, militarism) espouse the flag as their chief symbol.

boolean isEligibile (int, char, char) using Drjava
isEligibile will return true when the customer is eligible to book a vacation package, and false otherwise. It takes as input 3 pieces of information, first an int representing the customer’s age. Second, a char representing the country where the rental is being made (‘c’ for Canada, ‘u’ for United States, ‘f’ for France). The third input is a char representing if the customer has a valid Canadian passport ‘y’ for Yes, ‘n’ for No.
A customer is eligible to book a package under the following conditions:
If the customer is in Canada, they must be over 21.
If the customer is in the United States, they must be over 18.
If the customer is in France, they must be over 25.
If the customer does not have a valid passport, they are not eligible to book a package in France or the United States.

6.According to the open economy macroeconomic model, which of the following statements is (are) correct?

(x)The usual effects of capital flight include a rightward shift of demand in the loanable funds marketand a rightward shift of the NCO curve,

(y)Capital flight typically causes a decrease in the domestic interest rate and an increase in NCO.

(z)Capital flight typically causes the real exchange rate of the domestic currency to depreciate because capital flight causes an increase in the supply of the currency in foreign currency exchange markets.

A.(x), (y) and (z)B. (x) and (y) only C.(x) and (z) only D.(y) and (z) onlyE.(x)only

According to the open-economy macro model, which of the following causes the real exchange rate of the United States dollar to depreciate?

(x)the United States government decreases the budget deficit

(y)the United States eliminates import quotas and tariffs.

(z)capital flight from the United States

A.(x), (y) and (z) B. (x) and (y) onlyC.(x) and (z) only D.(y) and (z) only E.(y) only

6. According to the open economy macroeconomic model, which of the following statements is (are) correct?
(x) The usual effects of capital flight include a rightward shift of demand in the loanable funds market and a rightward shift of the NCO curve,
(y) Capital flight typically causes a decrease in the domestic interest rate and an increase in NCO.
(z) Capital flight typically causes the real exchange rate of the domestic currency to depreciate because capital flight causes an increase in the supply of the currency in foreign currency exchange markets.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only
E. (x) only

According to the open-economy macro model, which of the following causes the real exchange rate of the United States dollar to depreciate?
(x) the United States government decreases the budget deficit
(y) the United States eliminates import quotas and tariffs.
(z) capital flight from the United States
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

The following is a free response question to be used as practice for future exams. You can complete the assignment in this document, using the drawing tools in Word (or any photo editing program) or print this document, and complete the activity by hand, submitting a scan or photo of your work. When you are done, submit the assignment for grading by your instructor. This question will be graded out of 6 points.

1. The table below shows the production possibilities curves for two countries: China and the United States. Using equal amounts of resources, China can produce 200 computers or 400 cars, whereas the United States can produce 200 computers or 1,200 cars.

(a) Calculate the opportunity cost of a computer in China.

(b) If the two countries specialize and trade, which country will import computers? Explain.

(c) If the terms of trade are 4 cars for 1 computer, would trade be advantageous for each of the following?

(i) United States

(ii) China

(d) If productivity in China doubles, which country has the comparative advantage in the production of cars?

The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S.

Instructions: Enter your answers as whole numbers.

a. Are comparative-cost conditions such that the two countries should specialize?

      (Click to select)  Yes  No

     If so, what product should each produce?  

     China should produce  (Click to select)  chemicals  apparel  .

     The United States should produce  (Click to select)  apparel  chemicals  .

b. What is the total gain in apparel and chemical output that would result from such specialization?

    Apparel:

    Chemicals:

c. What are the limits of the terms of trade?

      units of apparel for 1 ton of chemicals and  units of apparel for 2 tons of chemicals.

Suppose that the actual terms of trade are 1,000 units of apparel for 1½ tons of chemicals and that 20,000 units of apparel are exchanged for 30 tons of chemicals. What are the gains from specialization and trade for each nation?

      (Click to select)  The United States  China  has a ??? gain of  units of apparel.

      (Click to select)  China  The United States  has a ??? gain of  tons of chemicals.

There have been several recent cases of a CEO or CFO resigning or being ousted for misrepresenting academic credentials. For instance, during February 2006, the CEO of RadioShack resigned by “mutual agreement” for inflating his educational background. During 2002, Veritas Software Corporation’s DFO resigned after claiming to have an MBA from Stanford University. On the other hand, Bausch & Lomb Inc.’s board refused the CEO’s offer to resign following a questionable claim to have an MBA.

Suppose you have been retained by the board of a company where the CEO has ‘overstated’ credentials. This company has a code of ethics and conduct which states that the employee should always do “the right thing.”

(a) What is the board of directors’ responsibility in such matters?

(b) What arguments would you make to ask the CEO to resign? What damage might be caused if the decision is made to retain the current CEO?

The population of the United States has grown at different rates over ten-year increments as shown by the following table.

If the maximum supportable population of the U.S. is 600 million people, use the logistic model to predict the population (in millions of people) of the U.S. in 2020 by using the following years as data points. (Round your answers to one decimal place.)

(a) using 1930 and 1940 as data points

(b) using 1950 and 1960 as data points

The growth rate from part (a) is ________ (smaller than, larger than, equal to) the growth rate from part (b).