Category: Economics

3. LIST AND EXPLAIN THE 4 MAIOR CHARACTERISTICS OF CAPITALISM. EXPLAIN EACH FULLY.
4. EXPLAIN THE CONCEPT OF OPPORTUNITY COST. WHAT ECONOMIC MODEL ILLUSTRATES THIS CONCEPT? DRAW AND EXPLAIN IT. PROVIDE AN APPLICATION OF OPPORTUNITY COST IN YOUR PERSONAL LIFE.
6. WHAT IS THE FEDERAL RESERVE BANK? WHAT IS ITS ROLE IN OUR ECONOMY? DESCRIBE ITS STRUCTURE, DESCRIBE A CURRENT POLICY ACTION TAKEN BY THE FED.
7. WHAT TOOLS ARE USED BY THE FEDERAL RESERVE TO IMPLEMENT MONETARY POLICY? INDICATE SPECIFICALLY HOW EACH OF THESE TOOLS COULD BE APPLIED IF A RECESSION WAS ANTICIPATED. GIVE EXAMPLES OF THE FED’S ACTION IN OUP CURRENT ECONOMIC SITUATION.
8. WHAT IS THE COMPOSITION OF THE U.S. MONEY SUPPLY? WHAT ARE THE FUNCTIONS OF MONEY? PROVIDE AN EXAMPLE OF EACH FUNCTION. WHAT IS M1 AND M2? BRIEFLY DESCRIBE YOUR USE OF MONEY IN YOUR EVERYDAY LIF

Question 1(a)Suppose that the instantaneous per capita utility of a representative household is given by u(c)=cφ, φ < 1. c(t) is the per capita consumption. Population grows at the constant rate, n and L(0)=1. The discount rate is ρ > 0. The representative household uses its financial asset to provide capital services to firms. There is no intra-household borrowing or lending. Household income, both labor income and capital income, is generated from production. Assume that the technology displays constant returns to scale and households supply inelastically one unit of labor input to production. Thus, we have: Y(t)=K(t)α*[A*L(t)]1-α; α < 1. Here, A is a productivity parameter which is constant, K(t) is aggregate physical capital and L(t) is aggregate labor. K(0) is given and K is asymptotically bounded. There is no depreciation of capital. Firms are perfectly competitive and are identical. Therefore, we can consider a representative firm. (i) Set up the household's dynamic optimization problem subject to the budget constraint and the terminal condition. (ii) Set up the Hamiltonian function and derive the Euler equation. (iii) Set up the profit maximiza

Match the terms with their definitions. Question 11 options:
1234567 tax on imports
1234567 resource output with a given input between two goods often expressed algebraically as equality between the X and Y axis of a PPC
1234567 being able to produce at a lower opportunity cost (greater efficiency) than someone else
1234567 having a greater efficiency (more output/input) in producing a good compared to another nation
comparative advantage
tariffs
absolute advantage
cost ratio
law of increasing cost in trade
quota
intensities of trade
Question 12 (5 points) Only nations with the same cost ratio can expect to gain from trade. Question 12 options:
True
False
Question 13 (5 points) Check each of the following that apply to trade. Question 13 options:
voluntary trade benefits both countries
occurs because of the uneven distribution of resources among nations
there is economic advantage for nations to gain unavailable resources exchanging for abundant resources
trade provides benefits from economies of scale and labor specialization
due to economies of scale, as higher output is produced for trade, average costs may increase basic trade analysis dates back to John Maynard Keynes in 1936

Consider the exchange rate between South Korea and Tunisia. Typically, exchange rates vary over time, sometimes quite dramatically. The scenarios present various changes that may affect the exchange rate. Identify whether each scenario will tend to cause an appreciation, depreciation, or have no effect on the exchange rate of South Korean won relative to Tunisian dinars.
After the magazine The Economist publishes an article indicating that analysts expect the value of Tunisian dinars to rise relative to South Korean won, South Korea’s currency will relative to Tunisia’s.
After the central bank in South Korea announces that it is going to raise interest rates on government bonds, South Korea’s currency will.
After a World Bank report predicts the inflation rate in South Korea is going to be 0% next year, whereas the inflation rate in Tunisia is going to be 8.5%, Tunisia’s currency will relative to South Korea’s.
If the price of a specific basket of goods in South Korea is roughly 1.7 times higher than the price of an identical basket of goods in Tunisia even after adjusting for the exchange rate, South Korea’s currency will relative to Tunisia’s.

Due to population growth in the area the new Liberty High School has just opened in a local school district.
The athletic director at Liberty High is planning the bunch of the school’s track and field team. The first team practice is scheduled for April 1. The activities, their Immediate predecessors, and the activity time estimates (In weeks) are listed in the following table.
Immediate Predecessor Most Probable Order team equipment Reserve buses for meets The project network is depicted in the following diagram. Please download this worksheet, and upload it once you input your answers to the following questions.
3. 12 points/Compute the expected time and variance for sach activity. Round your answers to two decimal places.
07 poines Using the expected times determined in part a compute the earliest time for eich activity. What is the eritical path, the expected project completion tome, and the variance for the project?
14 points If the athietic director plans to start the project on January 1, calculate the probability the track and fleld leam will be ready by the scheduled April 1 date. Give your answer to four decimals or two decimals if written as a percentage. For example 0.1234 or 32.347

Very Short Answer Question
1. What is economics?
2. Define substitute goods.
3. Define complementary goods.
4. Make a list of factors of production.
5. What is meant by demand?
6. Define supply.
7. What is equilibrium price?
8. Define elasticity of demand.
9. Define price elasticity of demand.
10. Define income elasticity of demand.
11. Define cross elasticity of demand.
12. Define elasticity of supply.
13. Define utility.
14. Define total utility (TU).
15. What is meant by marginal utility(MU) ?
16. Define consumer’s surplus.
17. Define producer’s surplus.
18. Define production.
19. What is meant by production function?
20. Define total product (TP) with formula.
21. Define average product (AP) with formula.
22. Define marginal product (MP) with formula.
23. What is macroeconomics?
24. Point out any four macroeconomic variables.
25. Define closed economy.
26. Define open economy.
27. What is national income?
28. Define Gross Domestic Product (GDP)?
29. Define personal income (PI).
30. Define personal income (DI) with formula.
31. Define per capita income (PCI) with formula.
32. Define GDP deflator.
33. What is money?