Homework Help for Economics

What two factors distinguish governmental politics from politics in other societal institutions?

In a free-market economy,

The market for authentic poutine in Vancouver is controlled by two shops, PierrePoutine (i = P) and MeanPoutine (i = M). The market demand is given by p = 12−q, where p is the price, and q is aggregate output. Both shops produce at constant marginal cost of $ 2 per dish of poutine.

a) Suppose first that each firm i = 1, 2 chooses its output qi , taking the output of the other firm as given [Cournot Competition]. Aggregate output is thus q = qP + qM. Determine the best-response functions q br 1 (q2) and q br 2 (q1). Calculate the Nash equilibrium quantities, the market price, and profits (Note that everything is symmetric here).

b) Now suppose firm i = 1,2 chooses its price pi , taking the price of the other firm as given [Bertrand Competition]. Give the Nash equilibrium prices and quantities. Explain carefully why i) this is a Nash equilibrium and why ii) there is no other equilibrium. Note: most of the credit will be for your explanation.

c) What if Pierre Poutine finds a cheaper cheese curd supplier, which reduces its marginal cost to $1 instead (MeanPoutine continues to have $ 2 production cost). Assuming that prices are quoted in dollars and cents (the smallest unit of measurement is a cent), determine new Nash equilibrium prices and quantities for the Bertrand Competition situation. Explain!

In 2013 the Washington Department of Transportation secured 800 million dollars to improve high speed rail service, particularly between Seattle and Portland. Economically explain the impact on the airline industry.

A nightclub manager realizes that demand for drinks is more elastic among students, and is trying to determine the optimal pricing schedule. Specifically, he estimates the following average demands:

How will a decrease in price affect a firm's revenues?

A. Revenues will decrease.

B. Revenues will increase.

C. It depends on the price elasticity of demand.

D. Revenues will stay the same.

Which of the following is predicted to deliver a Third Industrial Revolution characterized by low production and transportation costs?

Chapter 2 Media Quiz: Cuba's Economy

After watching the video on the Cuban economy, and reading The Economist article, The new normal; America and Cuba, discuss the following:

Can Cuba effectively become a free market economy? Will the US benefit from the recent lifting the embargo on Cuba? What are Cuba's comparative advantages relative to the US? What are their comparative disadvantages? What impact did the embargo have on Cuba? What impact did the embargo have on Cuba?

The Economist article, http://bi.galegroup.com/essentials/article/GALE%7CA395606024/01bab2daeacda211f61437a90698af49?u=tlearn_trl

Video http://ng.cengage.com/static/nb/ui/index.html?nbId=467603&nbNodeId=164476608&deploymentId=5555541817116218412853698812&eISBN=9781305641440#!&parentId=164476623

The Icelandic volcano explosion which shut down the European airspae is an example of a

Assume that the industry is not perfectly competitive. Rather, competition is characterized by Cournot competition with n symmetric producers. Assume that the demand function for pigs is p=100-Q, where Q is total production. Each producer's marginal cost is 20 before the virus. The effect of the virus is to raise the marginal cost to 30. Discuss the effect of the virus on the equilibrium of the market. (Hint: Find the Nash Cournot equilibrium before and after the virus).

A business cycle recovery that doesn't reach its long-term trend can lead to:

a) its natural unemployment rate.

b) a double-dip recession.

c) hyperinflation.

d) lower cyclical unemployment.

What are the advantages and disadvantages of entrepreneurship

Does the American with Disabilities Act achieve its goal or purpose? Explain

Suppose that the economy is given by:

C = c0 + c1(Y −T)

I = b0 + b1Y −b2i
with 0 < c1 < 1, 0 < b1 < 1, (c1 + b1) < 1, 0 < b2 < 1, and G, T are exogenous constants.

(a) Derive an expression for equilibrium output.

(b) Derive ∂Y/∂i, and invert this expression so that it is now ∂i/∂Y (hint: (3/2)−1 = (2/3). This is the IS curve we derived graphically in class. What is it’s sign? What is the effect on output of a small increase in the interest rate?

(c) What happens to the slope of the IS curve if b2 increases? What happens to the slope of the IS curve if (c1 + b1) increases? What is the economic intuition behind this?

(d) Using the expression for equilibrium output you derived in part b, derive ∂Y/∂G and ∂Y/∂T. What are the signs of these derivatives? How much does output change (and in what direction) if there is a
small increase in G? How much does output change (and in what direction) if there is a small increase in T? Now suppose equilibrium in the goods market is given by: Y (Y,i,G,T) (+,−,+,−) = C(Y,T +,− ) + I(Y,i +,− ) + G
(e) Derive ∂Y/∂i, and invert this expression so that it is now ∂i/∂Y (hint: (3/2)−1 = (2/3). This is the IS curve we derived graphically inclass. Whatisthesignofthisexpression? Whatdoesthesteepness of the slope of the IS curve depend on? How do the terms in this expression relate to the parameters b2,b1, and c1 in the IS curve you derived in part b?

(f) Through which channels does the interest rate affect output (i.e. what is the effects of changes in the interest rate on C, I, and G )? (Hint: To answer this question, you could take partial derivatives of C, I, and G with respect to i; or simply infer this from your answer to part a. )

Please peer rewiev this and discuss: Choose post you disagree with, and provide constructive critique, supporting your opinion by researching a source to back it up.

This is post i choose

There may be a lot of interesting components to Bill Clinton's presidency in the 1990s, and a change in autonomous spending is one of them. A deficit of 4.7% of GDP was eventually turned into a surplus of 2.4% of GDP with the reduction of government spending and increased taxes. With the Omnibus Reconciliation Act of 1993, the top income tax rate raised significantly, from 28% to 36% (income over $115,000/year) to 39.6% (income over $250,000/year). It also increased corporate income tax and ended corporate support in some situations. For example, in 1992, government spending relative to GDP was 22.1%, but by 2000, it was cut down even lower to 18.4%. On the other hand, this policy also created the earned income tax credit for people earning under $30,000. To put it simply, the way this policy helped the economy was to increase taxes of the wealthy and cut the middle class a break.