Economics

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?

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.

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)

Promoting international trade is not a zero-sum game. It is a win-win proposition; both parties gain from trade.Consider the following:Tariffs are paid by the citizens of the country imposing tariffs, not by the citizens of the country producing the products upon which the tariffs are levied.The term “trade deficits” is a misnomer. Every country’s trade is always in balance. Trade deficits do not mean the US no longer produces anything to export. The US is the world’s second largest manufacturer and the world’s second largest exporter of manufactured goods.Trade deficits reflect a strong economy. Trade deficits rise during economic expansions and fall during economic contractions. Unemployment falls as trade deficits rise and rises as trade deficits fall.Imports and exports are complements, not competitors. Both are necessary and both contribute to economic growth.Roughly one-third of all US imports and exports is trade between US multinational companies and their overseas subsidiaries.Foreign-owned companies operating in the US number in the thousands and provide directly or indirectly jobs for more than 13 million US workers (roughly, 10% of the US workforce).US trade deficit in goods in 2018 (as a % of GDP) was the same as it was 5, 10 and 15 years earlier.The rise in US goods trade deficit with China has not increased the US total goods trade deficit. It has been offset by reduced goods imports from other trading partners.There is a strong correlation between the rise in world trade and:The rise in world GDPThe dramatic fall in the world’s extreme poverty rateThe rise in world life expectancyFor every US manufacturing job lost to trade between 2000 and 2010, seven US jobs were lost to domestic productivity improvements. Those seven jobs cannot be brought back from overseas because they never left the USWrite a 800-word evaluation of credible economists’ unbiased opinions on the benefits, costs, and results of current US trade and tariff policies. Complete the following in your evaluation:Evaluate how US trade policy changes in the last 2 years affect global trade activities by multinational corporations.Discuss credible economists’ opinions on the long-term effects of trade and tariff policies changes in the last 2 years.Explain the effect of recent changes to trade and tariff policies have had on your employer, you, or someone you know.

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.

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. 

A) The term paper should be designed as follows: 1. Title 2. Abstract 3. Introduction Literature review 4. Results (findings) Formulas (rules) and examples (applications) (choosing 1 formula of Statistics to apply on 1 example) 5. References B) The topics of the term paper Applications of Statistics in Finance

you have to make spreadsheet to answer some of the questions, and the others you can write in words. upload your spreadsheet and answers as a single file. The file must be in a spreadsheet-type format (for example, .xls) so that we can open it and look at the formulas.

This is a short paper assignment which includes both positive and normative analysis. The topic concerns the possible relationship between state government opening/closing policies and the incidence of COVID-19 infections. 1. Start by reading the article denoted “state openings” in the Coronavirus folder in Files. This will provide some information on the topic, especially different states’ policies. There should be some discussion of this or similar information early in your paper. 2. Access the Johns Hopkins Coronavirus Dashboard through this link https://coronavirus.jhu.edu/ (Links to an external site.) You will find a button titled: Timeline of COVID-19 policies, cases, and, deaths in your state. This provides access to the type of interactive graphs we viewed in class. Pick any two states to conduct analysis. Some are more interesting than others. You may also, for extra credit, consider additional states. Observe the data and see what relationships might exist, or not, between opening policy and infection rates. Understand that nothing is conclusive here but you can certainly draw some initial observations. In this section you will discuss this analysis. 3. The data provided is very basic and there may be alternative explanations of infection rates. Discuss these possibilities. You may use outside sources but they are not required. If you do use any you must cite them. 4. Discuss opening/closing policy in terms of the concepts in today’s lecture and Chapters 1 and 2. Scarcity, opportunity costs, trade offs, incentives, etc. 5. Draw some conclusions from all the information you considered in your paper on what you think policies should be. THERE ARE NO RIGHT OR WRONG ANSWERS. There is a wide range of answers. For example you may feel strongly one way or another. Or you might decide there is not yet enough research to inform policy. You are graded on creative thinking and linking this final normative analysis to the positive analysis that comprised the majority of your paper—not on your opinions. Outside sources are not required but you are encouraged to use them. If you use a source you must cite it. Also paraphrase, don’t direct quote. NO PEDIAS! Good writing style is stressed. Divide your paper into logical, separate sections The numbers above may suggest a section structure but use whatever you think is best. Delineate sections with subheadings. Use proper paragraph structure and watch spelling and grammar. I grade on quality not quantity. Normally I might suggest a length. I am not going to here. I want to see your creativity, interest, and knowledge. I want this exercise to be fun and stimulating.

1. Please answer all parts of this question: a. Compare and contrast perfect competition with monopolistic competition, outline the underlying assumptions and provide examples of both market structures. b. Explain and show diagrammatically the short-run and long-run equilibrium of the firm both under perfect competition and monopolistic competition. (In total maximum 800 words; 40 points) 2. Define a natural monopoly, illustrate the underlying characteristics and provide examples of situations where natural monopolies are likely to occur. (In total maximum 600 words; 30 points) 3. With the use of examples, illustrate how governments can encourage innovation. (In total maximum 600 words; 30 points)