Univ Maryland ECON 430 Fall 2014 QUIZ 3 and Essay Assignment

(Use multiple paragraphs when needed.)
#1: Explain Monetarism.
#2: What is the Taylor Rule and why is it important to this field of study?
#3: What is the Lucas critique?
#4 Explain the Gold Exchange System of the Bretton Woods era.
#5 What are the short run determinants of exchange rates?
#6 What happens when central banks buy international reserves?
#7 How has China (purportedly) enhanced her export base?
#8 What is dollarization and why is it important to developing countries?
#9 Explain Fiscal and Monetary Policy using the IS-LM model.
#10 Use the Quantity Theory of Money to explain a macroeconomic case of inflation.

Essay Question 

Keynes & the Keynesians

Keynesian Economics held sway in many countries for several decades in the 20th century. It remains influential. The Monetarists, too, have been quite influential per monetary policy over the past several decades. Which is correct? If you were the leading banker, which position would you lean towards the most? (Research is highly encouraged.)

Your primary post should be roughly 400 words and must be properly cited.

Two replies to the primary posts of others is required to be eligible for passing credit.

Please post your Primary Essay by midnight SATURDAY to encourage discussion.

<pclass=msonormal>M1, M2, 10-Year Treasury Note Yield Exercise:

You will need to track M1 and M2 from the Federal Reserve website and submit a chart for each

on the last day of week 6.

For the 10-Year Treasury Note yield (in percentages), you will need to track this using the Wall Street Journal”s website, www.wsj.com, or www.cnn.com/money (these sites are available through the UMUC library).

You will be responsible for providing a trend analysis of your findings in at least a paragraph that accompanies each of your three charts.

Please provide at least THREE weeks of data (weeks 4-5-6 of the class should suffice) in your report.


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Econ 2000H Assignment Fall 2014

ESSAY. Write your answer on a separate sheet of paper.
1) 20 Points
Apu”s Squishy production function is y(K, L) = K L where K is the number of squishy machines and L is the
number of labor hours he employs. Does this production function exhibit increasing, decreasing or constant
returns to scale? (5 Points) At the moment, Apu uses 2 squishy machines and 4 labor hours. Suppose that Apu
can use any amount of either input without affecting the market costs of the inputs. If Apu increased his use of
labor hours and squishy machines by 100%, how much would his production increase? (5 Points) Increasing
the use of both inputs by 100% will result in Apu”s costs increasing by exactly 100%. If Apu increases his use of
all inputs by 100%, what will increase more his production or his costs? (5 Points) Given that Apu can sell as
many squishies as he produces for $1.00, do his profits go up or down when he increases his input use by
100%?(5 Points)
2) (20 Points)
May enjoys spending her free time with her friends at the mall and solving problems from her microeconomics
3 P 1/4
text. She has 16 hours per week of free time. Diagram May”s time constraint. (5 Points) If MUF =
and
4 F
1 F 3/4
MUP =
where F is her time spent with friends at the mall and P is her time spent working problems,
4 P
how much time should May spend at each activity? (15 Points)
3) (20 Points)
The demand curves for steak, eggs, and hot dogs are given in the table below. The current price of steak is $5.
The price of eggs is $2.50, and the price of hot dogs is $0.75. Fill in the remaining columns of the table using this
information. Indicate which goods are substitutes and which goods are complements.
Good
Demand Equation
Steak
1
DS = 500 ” 2PS P + PH
10 E
Egg
Steak Price
Elasticity of
Demand
1
DE = 75 ” 3PE ” PS +
P
10 H
Hotdog
DH = 300 “
1
1
P + PS +
P
2 H
10 E
1
Egg Price
Elasticity of
Demand
Hotdog Price
Elasticity of
Demand


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Outline a plan that will assess the effectiveness of the market structure for the company’s operations.

Operations Decision Due Week 6 and worth 300 points
Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.
Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).
Write a six to eight (6-8) page paper in which you:
1.Outline a plan that will assess the effectiveness of the market structure for the company’s operations. Note: In Assignment 1, the assumption was that the market structure [or selling environment] was perfectly competitive and that the equilibrium price was to be determined by setting QD equal to QS. You are now aware of recent changes in the selling environment that suggest an imperfectly competitive market where your firm now has substantial market power in setting its own optimal” price. 2.Given that business operations have changed from the market structure specified in the original scenario in Assignment 1, determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment. 3.Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run. TC = 160,000,000 + 100Q + 0.0063212Q2 VC = 100Q + 0.0063212Q2 MC= 100 + 0.0126424Q
4.Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response. (Hint: Your firm’s price must cover average variable costs in the short run and average total costs in the long run to continue operations.) 5.Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Provide a rationale for your suggestion. (Hints:
In Assignment 1, you determined your firm’s market demand equation. Now you need to find the inverse demand equation. Having found that, find the Total Revenue function for your firm (TR is P x Q). From your firm’s Total Revenue function, then find your Marginal Revenue (MR) function. Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power. Compare these values with the values you generated in Assignment 1. Determine whether your price higher is or lower.) 6.Outline a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions. (Hints:
Calculate profit in the short run by using the price and output levels you generated in part 5. Optional: You may want to compare this to what profit would have been in Assignment 1 using the cost function provided here. Calculate profit in the long run by using the output level you generated in part 5 and cost data in part 3 and assuming that the selling environment will likely be very competitive. Determine why this would be a valid assumption.) 7.Recommend two (2) actions that the company could take in order to improve its profitability and deliver more value to its stakeholders. Outline, in brief, a plan to implement your recommendations. 8.Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource. Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are:
Analyze short-run and long-run production and cost functions. Apply macroeconomic concepts to changes in global and national economies and how they affect economic growth, inflation, interest rates, and wage rates. Evaluate the profit-maximizing price and output level for given operating costs for monopolies and firms in competitive industries. Use technology and information resources to research issues in managerial economics and globalization. Write clearly and concisely about managerial economics and globalization using proper writing mechanics. Click here to view the grading rubric.


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laws, acts, and policies designed to prevent and/or remedy discrimination in the workplace

Why does the United States have so many laws, acts, and policies designed to prevent and/or remedy discrimination in the workplace?

The purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB will be accepted after the end of each unit.
Why does the United States have so many laws, acts, and policies designed to prevent and/or remedy discrimination in the workplace? How effective do you think these regulations have been? Is further legislation needed? Are there any laws or policies you believe are no longer relevant or needed in today’s workplace?
In your post, address the following:

  • Provide a brief explanation of the economic theory of statistical discrimination as it relates to the workplace.
  • Compare and contrast statistical discrimination with the theory of unconscious bias.
  • In your opinion, do these theories support the need for antidiscrimination laws and policies? Explain your reasoning.
  • Are there any current laws and policies relating to workplace protection that you think are no longer needed? Explain your reasoning.
  • Is additional legislation or enforcement needed in the area of antidiscrimination in the workplace? Explain your reasoning.

For assistance with your assignment, please use your text, Web resources, and all course materials.
You may find these following Web resources useful in your research:
White men can’t help it.
http://www.businessweek.com/magazine/content/06_20/b3984081.htm
The achievement gap.
http://www.forbes.com/2007/02/25/economics-discrimination-education-lead_achieve07_cz_th_0301discrimination.html
In your own words, please post a response to the Discussion Board and comment on other postings.
You will be graded on the quality of your postings.
For assistance with your assignment, please use your text, Web resources, and all course materials.
Unit Materials
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