Get college assignment help at uniessay writers 5. Japan primarily exports manufactured goods, while importing raw materials such as food and oil. Analyze the impact on Japan’s terms of trade f the following events: (10 points) a. A war in the Middle East disrupts oil supply. b. U.S. engineers develop a fusion reactor that replaces fossil fuel electricity plants. c. A harvest failure in Russia.
Which of the following statements about the effects of rent control is correct? a. The short-run effect of rent control is a surplus of apartments, and the long-run effect of rent control is a shortage of apartments. b. The short-run effect of rent control is a relatively small shortage of apartments, and the long-run effect of rent control is a larger shortage of apartments. c. In the long run, rent control leads to a shortage of apartments and an improvement in the quality of available apartments. d. The effects of rent control are very noticeable to the public in the short run because the primary effects of rent control occur very quickly.
3) Fred won a lottery that pays him $1000 a month. While that’s not a lot of cash, that’s fine – Fred only consumes garlic and anchovies. While his breath may be rough, these two goods give him utility according to the function, U(g,a)=g.25a.75, where ‘g’ represents the amount of garlic he consumes and ‘a’ represents the amount of anchovies he consumes. The price of garlic is $1 and the price of anchovies is $2. Fred doesn’t make any money other than his lottery check of $1000/month. a) Find Fred’s Marshalian demands (uncompensated demands) for anchovies and garlic. b) Calculate the value of utility at the optimum and the value of the expenditure function for Fred. c) Fred’s generous grandmother decides to give him an allowance. She likes fish too and is willing to reimburse 75 percent of Fred’s anchovy expenditures. How does this allowance affect Fred’s budget constraint? How many anchovies does Fred consume? What is the utility level with the allowance? What is the total subsidy that Fred’s grandmother pays him? d) Fred’s grandmother realizes that Fred is eating way too many anchovies and decides to stop paying the allowance. Fred disagrees, and wants to be as well off as he was with the allowance. How much income (in addition to his lottery earnings) would Fred need to go out and find to be as well off as he was with the allowance?
A Paper Company produces 1 million euros worth of paper and sells it to a book publisher, which prints 100,000 copies of an economics textbook for which it paid an economics professor 500,000 euros to write. The publisher sold the textbooks to university bookstores nationwide for 3 million euros. The university bookstores received 4 million euros from students in exchange for the books.
Continue to answer all questions for $70 “1. Define the key terms below as they are defined in the textbook and explain, in your own words what those definitions mean to you (5 points), and then thoroughly analyzes each situation to answer the following questions Use the diagrams below, resizing them as necessary, to illustrate your analysis in explaining what happens to private savings, private investment spending, and the rate of interest if the following events occur. Assume the economy is closed. a. The government reduces the size of its deficit to zero (10 points). Unit 9 [BU204 | Macroeconomics] 3 b. At any given interest rate, consumers decide to save more. Assume the budget balance is zero (10 points). c. At any given interest rate, businesses become very optimistic about the future profitability of investment spending. Assume the budget balance is zero (10 points). 2. Define the key terms below as they are defined in the textbook and explain, in your own words what those definitions mean to you (5 points), and then thoroughly analyzes each situation to answer the following questions Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process and causes by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. Use the diagrams below, resizing them as necessary, to illustrate your analysis. In each case, what are the short-run and long-run effects on the aggregate price level and aggregate output? Unit 9 [BU204 | Macroeconomics] 4 a. There is a decrease in households’ wealth due to a decline in the stock market (15 points). b. The government lowers taxes, leaving households with more disposable income, with no corresponding reduction in government purchases (15 points). 3. Define the key terms below as they are defined in the textbook and explain, in your own words what those definitions mean to you (7 points), and then thoroughly analyzes each situation to answer the following questions a. An economy in a hypothetical country is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap—inflationary or recessionary—will the economy face after the shock, and what type of fiscal policies, giving specific examples, would help move the economy back to potential output? a. A stock market boom increases the value of stocks held by households (8 points). Unit 9 [BU204 | Macroeconomics] 5 b. Firms come to believe that a recession in the near future is likely (8 points). c. Anticipating the possibility of war, the government increases its purchases of military equipment (8 points). d. The quantity of money in the economy declines and interest rates increase (8 points). Unit 9 [BU204 | Macroeconomics] 6 4. The table below shows the United States components of M1 and M2 in billions of dollars for the month of December in the years 1998 to 2007 as published in the 2008 Economic report of the President. Year Currency in circulation Traveler’s checks Checkable deposits Money market funds Time deposits smaller than $100,000 Savings deposits M1 M2 Currency in circulation as a percentage of M1 Currency in circulation as a percentage of M2 1998 460.5 8.5 626.5 728.9 952.4 1,605.0 1999 517.8 8.6 596.2 819.7 956.8 1,740.3 2000 531.2 8.3 548.0 908.0 1,047.6 1,878.8 2001 581.2 8.0 592.6 962.3 976.5 2,312.8 2002 626.3 7.8 585.6 885.3 896.0 2,778.2 200 662.5 7.7 635.9 818.7 3,169.1 Unit 9 [BU204 | Macroeconomics] 7 3 777.4 2004 697.6 7.5 671.2 697.1 829.9 3,518.3 2005 723.9 7.2 643.4 699.9 995.8 3,6721.4 2006 748.9 6.7 611.4 799.4 1,170.4 3,698.6 2007 759.0 6.3 599.2 976.1 1,216.8 3,889.8 a. Complete the table by calculating M1 (5 points), M2 (5 points), currency in circulation as a percentage of M1 (5 points) , and currency in circulation as a percentage of M2 (5 points). What trends or patterns about M1, M2, currency in circulation as a percentage of M1, and currency of circulation as a percentage of M2 do you see (5 points)? What might account for these trends (12 points)? 5. Considering the flow of money throughout a country’s economy and the importance of the proper level of money supply, answer the following questions. a. Discuss how money is created within the banking system (15 points) b. Discuss how in the United States, the Federal Reserve uses monetary policy to control the money supply. (17 points) 6. After experiencing a recession for the past two years, the residents of Albernia were looking forward to a decrease in the unemployment rate. Yet after six months of strong positive economic growth, the unemployment rate has fallen only slightly below what it was at the end of the recession. a. How can you explain why the unemployment rate did not fall as much although the economy was experiencing strong economic growth? (15 points) Unit 9 [BU204 | Macroeconomics] 8 b. Explain how and why the unemployment rate fluctuates with the inflation rate as is depicted in the Short-Run Phillips Curve. (17 points)” – Sent to Economics Expert Tutor on 10/19/2010 at 8:28pm
if the marginal cost of national defense is constant at $24 per unit, what is the efficient level of national defense to provide?
The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don’t know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, we would expect that the growth rate in Turan will
Suppose that 50 units of a good are demanded at a price of $1 per unit. A reduction in price to $.20 results in an increase in quantity demanded to 70 units. Show that these data yieled a price elasticity of .25. By what percentage would a 10% rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve.
a firms capial stock is $100 billion, savings are $10 billion and depreciation occurs at a rate of 5% per year. wat is gross investments and additional to capital in that year
The marginal revenue curve of a monopoly crosses its marginal curve at $30 per untit, and an output of 2 million units. The price that consumers are willing and able to pay for this output is $40 per unit. If it produces this output, the firm’s average total cost is $43 per unit, and its average fixed cost is $48 per unit. What is the producer’s profit-maximizing(loss-minimizing) output level? What are the firm’s economic profits (or economic losses)?.
Get college assignment help at uniessay writers In exchange for a share in the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus or at university events. The beneficiaries of this deal are _______.
Suppose your bank pays you 6% interest per year on your savings account, so that $100 grows to $106 over a one-year period. If prices increase by 3% per year over that time, approximately how much do you gain by keeping $100 in the bank for a year?
Let the exchange rate be defined as the number of dollars per British pound. Assume there is a relatively lower rate of inflation in U.S. relative to that of Britain. (a.) Would this event cause the demand for the dollar to increase or decrease relative to the demand for the pound? Why? (b.) Has the dollar appreciated or depreciated in value relative to the pound? (c.) Does this change in the value of the dollar make imports cheaper or more expensive for Americans? Are American exports cheaper or more expensive for importers of U.S. goods in Great Britain? Illustrate by showing the price of a U.S. cell phone in Britain, before and after the change in the exchange rate. (d.) If you had a business exporting goods to Britain, and U.S. inflation fell as discussed above in this example, would you plan to expand production or cut back? Why?
P=.9-.08Q P=.1 .02Q Find consumer and producer surplus at equilibrium.
What is measured by real gdp?
1. Objective measures included in an evaluation and incentive system might include: A. improved quality of communications with subordinates. B. meeting or exceeding sales goals. C. reorganizing a department for improved human relations. D. recognition for finding and solving problems. 2. If managers were rewarded for meeting quota, then: A. some managers would rebel and not meet the necessary quota. B. all managers would exceed quota. C. all managers would just meet quota. D. some managers would just barely exceed quota. 3. Which of the following should not be on a list of things you should do to get an honest evaluation? A. Have a list of creative solutions to problems that you have encountered. B. Show how your output influenced the profitability of your division. C. Illustrate how your actions will improve the company next year. D. Take your boss to dinner the night before evaluations are due.
A monopolistically competitive firm faces a demand curve depicted by the formula P = 24 – 4Q, where P represents price and Q is quantity demanded. 4. When the monopolistically competitive firm lowers price from $16 to $12, how much does total revenue change?
Compare the additional revenue Microsoft makes as it moves from 20 million to 40 million copies of Vista with the additional revenue it makes as it moves from 40 million to 60 million copies of Vista. If Microsoft wants to sell more copies, the additional revenue from each additional copy it sells:
You could get many different answers for this questions because everyone might answer it differently. But we have to look at the facts. If inflation starts to run high, the Federal Reserve will raise interest rates, sell bonds on the open market, and raise the reserve ratio all to combat inflation. During a recession, it seems like the only thing to do to fight it is to throw money at the problem. In my opinion, yes the federal reserve is more effective at fighting a recession than an inflation. Just look at what happened in 2008, with the actions of the fed we stopped the next great depression from happening. Around the same time the fed lowered interest rates which helped to make sub prime loans more attractive for everyone. This of course eventually lead to the recession we were in. So in my opinion, the did fail trying to reverse inflation in the country. But they did do enough to stop the recession to keep it from becoming a great depression. After doing some reserarch i found the following monetary policty tools to be useful in fighting a recession. The first policy tool is the ability to change the required reserve ratio. If the Fed increases reserve ratio, the banking system is forced to destroy modney, and if the Federal Reserve decreases this ratio, the system is encouraged to create money. But when your fighting a recession you want as much money to be out to the public as possible so they could spur the ecnomny on. The second monetary policy is the discount rate. One way a bank can obtain reserves is by borrowing them from the Federal Reserve. When the Federal Reserve charges a high interest rate for these borrowings, banks will not borrow as much reserves as when the Federal Reserve charges a low interest rate. A third policy is open-market operations. In open-market operations the Federal Reserve buys or sells U.S. government securities. When the Fed buys securities, funds are created that in turn buys t bills. It pays with a check drawn on itself, and when a commercial bank submits this check for payment, the bank gets reserves that did not previously exist. The process by which the Federal Reserve creates bank reserves parallels the process by which banks create money. A major difference is that the creation of bank reserve is not a by-product of a quest for profit. On the contrary, any profit is a by-product of an attempt to maintain some level of reserves. Indeed, if a modern central bank set out to maximize profit, it is doubtful that the monetary system could long survive.
4. Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. a. Box of cereal sold in a grocery store b. Gasoline as a commodity c. Gasoline sold at a local gasoline station d. Fast food sold at a restaurant e. Hotel rooms for people planning a vacation f. Hotel rooms for people on business to meet an important client g. Clothes sold in a discount retailer
Why is presidential power “conditional” – that is, why is affected so substantially by circumstances, the makeup of congress, and popular support?
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