Why do we, as consumers, prefer the prices found in competitive markets? How are the prices in perfectly competitive markets determined? Explain,

Which of the four market structures that we covered is most profitable for the firm? Is this the best market structure for consumers? Why or why not? Explain.

We've made a pretty big deal about the differences between fixed and variable costs. Why does variable cost change as output changes? From your perspective as a manager, why is this important? Explain.

Elasticity of demand is a very important concept in economics as it shows the responsiveness of quantity demand to various factors that affect demand. Assume the price of commodity (X) increases from k6 to k9 and because of this increase in price quantity demanded changes from 3units to 15units. a) What type of commodity is being described above? Give reasons b) Analyze the types of price elasticity of demand that you know. c) Calculate the price elasticity of demand.(9marks) d) Comment on your answer.

Suppose we know that a policy did not produce any change in a household’s real per capita consumption expenditure. List at least five ways the policy might nonetheless have improved the household’s well-being. That is, suggest at least five stories regarding how the household’s circumstances might have changed, and how the household responded to those changes, that are consistent with the household’s well-being rising even while its per capita consumption expenditure remains constant.

1A Draw a demand curve and illustrate a change in quantity demanded.

1B. What factor directly changes quantity demanded?

1C. Draw a demand curve and illustrate a change in demand.

1D. What factors cause a change in demand?

1E. Draw a supply curve, S1 and a second supply curve, S2 that represents an increase in supply.

1F. Give three examples that cause supply to increase.

1G. Explain the difference between “change in quantity supplied” and “change in supply”.

1. What will be some of the potential issues faced by a business looking to implement job rotation after brexit in lower skilled jobs?; such as Mcdonalds, hotels and so on.

2. Using the Job Characteristics model as a framework may identify changes that need to be made which will make the jobs in food retail, cleaning or farming more attractive. How might this be problematic for jobs in these industries?

3. What are some possible ways to improve intrinsic/extrinsic motivations for lower skilled jobs in industries mentioned above?

Consider the balance sheet of the following bank.

                                           Chase

     ------------------------------------------------------------------------------

     Reserves        3000       Checkable Deposits      5000

     Loans             7000       Savings and Time Deposits 8000  

     Bond Holdings      4000      Equity               1000

     Using balance sheets, show all the balance sheet steps of Chase making a loan of $1000. Provide a brief explanation for each step and assume that the loan check is re-deposited in another bank (provide a balance sheet for that bank as well). Verify how the money supply (M2) changes as a result

Depreciation is a tough concept since there may be so many factors associated with it. The IRS changes the tax deductions given for depreciation on a regular basis. On a larger purchase the tax deduction may be significant. How much of a factor do you think depreciation should be on the decision to move forward with a project? For example, if the tax benefit is greater in the following year, should management hold off on the purchase? Do you feel that managers understand this concept well enough to include it in their decision making process?

1) Which of the following is a not a key assumption of the Keynesian school of macroeconomics?

Select one:

A. Prices and wages are relatively inflexible

B. Expectations are relatively slow to adjust

C. Demand management can be used to smooth the business cycle

D. The main role of government policy should be to remove impediments to free markets

2) The idea that some economic changes are difficult to reverse is called:

Select one:

A. Stagflation

B. Deflation

C. The expectations-augmented Phillips curve

D. Hysteresis

1) Consider a small country whose actions does not affect the world interest rate. Draw a loanable funds market for the country and analyze how Net Export and Net Capital Outflow changes when the following happens. Draw different graphs for each case.

a) The country’s government implements a policy to lower income taxes while keeping the government budget unaffected

b) The US (a powerhouse in the World market) implements a contractionary monetary policy to raise interest rate

Please explain the law of demand and law of supply with your good examples. Also explain all the changes that happen to the equilibrium price and quantity with numeric examples, when,

a. Demand curve shifts (to right and left)

b. Supply curve shifts (to right and left)

c. Both demand and supply curves move to the right at the same time

d. Both demand and supply curves move to the left at the same time

e. Explain with example the difference between change in demand and change in quantity demanded.