Economics

Financial crises, such as the one that impacted many developed countries starting in 2007, decrease banks’ ability and willingness to make loans.Decreased availability of credit decreases businesses’ ability to make investment purchases and consumers’ ability to buy goods and services. As aresult, a financial crisis is a negative shock for an economy.The following graph shows an economy’s aggregate demand curve and its short-run and long-run aggregate supply curves after a financial crisis haspushed it into recession. Suppose that the government decides not to use a stabilization policy and allows the economy to adjust on its own.Determine which curve, the aggregate demand curve or the short-run aggregate supply curve, shifts when the economy adjusts in the long run. Useeither the blue line (circle symbol) to plot a new aggregate demand curve or the orange line (square symbol) to plot a new short-run aggregate supplycurve to show the economy in long-run equilibrium. Make sure the curve you plot is parallel to one of the existing curves.Note: You can check the slope of each line by selecting it.(?)200LRAS180O160New ADAD140-0-PRICE LEVEL120New SRAS10060BRAS4020101214161820REAL GOP (Trillions of dollars)Which of the following statements best describes how the economy will adjust on its own in the long run?O Low unemployment contributes to an increase in aggregate demand, and the aggregate demand curve shifts tothe right until the economy is back at the long-run equilibrium.O High unemployment contributes to a decrease in aggregate demand, and the aggregate demand curve shifts tothe left until the economy is back at the long-run equilibrium.Wages and resource prices fall, and the SRAS curve shifts to the right until the economy is back at the long-runequilibrium.Wages and resource prices rise, and the SALAS curve shifts to the left until the economy is back at the long-runequilibrium.

Chapter 9: Competitive Markets for Goods and Services Part 1 Consider the following goods and services. Which are the most likely to be produced in a perfectly competitive industry? Which are not? Explain why you made the choices you did, relating your answer to the assumptions of the model of perfect competition. Please address all of the examples below in your discussion.1.    Coca-Cola and Pepsi2.    Potatoes3.    Private physicians in your local community4.    Government bonds and corporate stocks5.    Taxicabs in Lima, Peru—a city that does not restrict entry or the prices drivers can charge6. Oats Chapter 10: Monopoly Part 2A monopoly firm faces a demand curve given by the following equation: P = $500 ? 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. You may wish to arrive at the answers mathematically, or by using a graph (the graph is not required to be presented), either way, please provide a brief description of how you arrived at your results.a)    How much will the firm produce?b)    How much will it charge?c)    Can you determine its profit per day? (Hint: you can; state how much it is.)d)    Suppose a tax of $1,000 per day is imposed on the firm. How will this affect its price?e)    How would the $1,000 per day tax its output per day?f)    How would the $1,000 per day tax affect its profit per day?g)    Now suppose a tax of $100 per unit is imposed. How will this affect the firm’s price?h)    How would a $100 per unit tax affect the firm’s profit maximizing output per day?i)    How would the $100 per unit tax affect the firms profit per day? Part 3Respond to the following question in at least three well composed paragraphs: What are the necessary conditions for a monopoly position in the market to be established?

How do prisons work to accommodate juveniles, individuals with a mental illness, and individuals with a substance use disorder?  Identify a Human Service program meant to address the needs of these populations while they are involved in the correctional system 

For this final assignment, you will be evaluating the loan you have decided to fund: Summarize the objective of the loan in your own words evaluates the terms of the loan: How much money is the borrower seeking? What will the monthly payments be? How large is this monthly payment relative to the average income in the borrower’s country? Discuss why you chose this particular borrower as opposed to others? What factors influenced you? Geography, gender, sector, group/individual lending? Given what we have learned about development economics and the data you collected in your economic profile, how will your loan contribute to economic development in the borrower’s country? Be specific about the particular issue that your loan addresses and why the loan you are making will promote development.

Jessica manufactures components for a product. She has sued one of her customers, Michael, in the United States for payment. Michael claims that the components that Jessica delivered were defective. They are now negotiating a possible settlement. Jessica is asking the court to award her 400,000 in damages and she agreed to pay her attorney a 30% contingency fee. There is a 50% chance that she will win. If they go to court, she estimates that Michael’s attorney’s fees will total 80,000. Based on a decision tree calculation, the value of Jessica’s litigation BATNA based only on these facts is 

Note: There is only one written assignment due at the end of the course.The course paper is due at the end of week 4. It is announced in week 3 only as a reminder so you can start working on your paper if you have not done so already. The objective is to explain macroeconomic concepts in your own words with real-world examples, and to improve writing and research skills.For your course paper, you may either: A)Summarize a topic covered in one of the chapters in the text that may have interested you the most. Below is a hypothetical example of steps a student might take in completing the course paper: You become interested in chapter 7, “Taxes”- (Note: this is not a macroeconomic topic).You define and explain your chosen topics, such as “the incidence of tax”, “excise tax”, and “burden of taxation”. You organize your notes on relevant points sequentially. You find fairly current or recent articles, or information relevant to your chosen topic. (For example: How a 5% hotel room occupancy tax imposed on tourists visiting San Diego may affect price, quantity demanded and supplied, and how the burden of the tax is shared between the buyers and the sellers).You offer concluding remarks that may be subjective but supported by economic reasoning.This essay should emphasize quality rather than quantity and should be at least 4 pages, not including bibliography.OR, you may:B)Choose one of the following macroeconomic topics, or, choose your own macroeconomic (not MICROeconomic) topic: Does expansionary fiscal policy help or hinder economic growth? Why was the Federal Reserve Bank in favor of raising the interest rates while the present administration was against it? How can the recent tariff wars affect foreign currency exchange rates and maybe the consequences on the domestic economy? Howandwhenwas the Great Recession of 2008 recovered? Do you think the economy is headed for a recession? why or why not Once you have selected a topic, be sure to conduct a thorough Review of Literature on the subject. The minimum length of your course paper is4 pages, double-spaced without the title page and the page on references. There is no upper page limit for your paper. Organize your paper with five sections: Introduction and objective. Make sure the objective is specific. Literature Review. Conduct a search on the topic of your paper and summarize the works of others similar to what you are writing on. Be sure to follow APA guidelines. The following link contains the basics of APA style guidelines:http://www.apastyle.org/learn/tutorials/basics-tutorial.aspxAnalysis: Analyze your topic with reference to the objective. Summary and conclusion References. Provide at least two references, at least two of which must be scholarly books and /or journals.You are welcome to send your topic and the objective of your paper to your instructor by the end of the first week so that she/he may provide additional guidance.

Q1. Define fiscal policy and its key objectives. What government agencies are responsible for making decisions on fiscal policy actions and implementations.Q2. Define monetary policy and its key objectives. What government agency (s) is (are) responsible for making decisions on monetary policy actions and implementations?Q3. Distinguish between budget deficit and public debt with an example from actual data from the US government budget office discussed in the beginning of this chapter. Give at least three reasons why the budget deficit and public debt has been continuously rising since 2001Q4. Give at least two reasons why balanced budget approach for the US economy is not a realistic approach in the short-run despite a political advocacy to bring the budget to balanced budget?Q5. Describe the role of policy mix of fiscal and monetary policy actions in stabilizing the inflation, unemployment and RGDP growth for the economy.Q6. List of a few arguments for and against “discretionary” fiscal and monetary policy actions by different groups in economics profession and business entities (and also by politicians). How do they differ from the advocacy for adopting passive “rules” of economic policy? Give real world examples in your answers in the context of US economy.

Suppose a consumer has the utility function U(qx , dy ) = In(qx ) + 2qy. Let price of good I be Pr, the price of good y be Py, and income beY.a) (4 marks) Find the Engel Curve of good z and good y. Make sure to label the axes and curves.b) (4 marks) Find the expenditure function. Show Shephard’s Lemma gives that same demand curve for good I (i.e. you get the same demandCSSciorgood re using the Lagrangian/substitution incthaiShort Cut Vethud and -aE(PI, Py, U)

Suppose Yamaha and Hero must decide whether to make a new style of side-impact airbags standard equipment on all models. Side-impact airbags raise the price of each automobile by $1,000. The company will earn profits of $2 billion each if they make the airbags. If neither company adopts the technology, each company will earn $3.5 billion. If one company acquire the technology and the other does not, the adopting company will earn a profit of $4.5 billion and the non-acquiring company will earn $0.5 billion.a. If a decision is to be made for Hero, should the side-impact airbags standard equipment be made?b. If Yamaha and Hero were able to cooperate, is this expected to bring the same outcome?

Sometimes the more expensive product wins since higher customer willingness to pay more than offsets the higher price. For example, Starbucks’ market share exceeds that of nearly every rival, despite higher prices. Choose and describe two products that compete in the same market where the more expensive product has a higher market share. What features of the more expensive product result in the higher willingness to pay? Upload a photo of both products and/or company logos.NOTE: If using two pictures, you must combine them into a single image file for upload. You can use an image editing program, a screen grab or snip, or even Microsoft PowerPoint (place the pictures next to each other and save the slide in JPG or PNG format). If the images are not your own, be sure to cite your sources in your description.