Economics Answers

If the legislation does succeed, what will happen to the market for landscape workers? Would it be best to represent the effect of the law in terms of a shift in the demand curve, a shift in the supply curve, or a combination of the two?

5. The imaginary nation of Washingtonia prohibits the import of foreign-made pharmaceuticals. What effect does this have on the well-being of people in Washingtonia who consume pharmaceuticals? Who benefits from this trade restriction?

4. Purchasing power parity and the law of one price are two related concepts.
a. Explain what is meant by the law of one price. Also explain why a person or nation could profit if this law does not hold.
b. Offer three reasons why the law of one price might not hold for some goods.
c. Explain what is meant by purchasing power parity. Also explain how purchasing power parity relates to the law of one price.

3. For a number of years, the U.S. dollar was losing value relative to other currencies around the world.
a. Explain what sort of monetary policy would help to increase the value of the dollar and why it would have this effect. What effects does this policy have on unemployment and the merchandise trade balance?
b. Describe a fiscal policy that would help increase the value of the dollar and why it would have this effect. What effects does this policy have on unemployment and the merchandise trade balance?

2. Government fiscal policy and international trade seem to be linked. Let’s investigate their relationship.
a. Say a government is currently running a budget deficit and decides to cut taxes, increase spending, or both. Explain how this will affect interest rates in the country.
b. Given the change in interest rates from part A, what will happen to the value of this country's currency? Explain why.

1. Using a certain quantity of resources, workers in the fictitious country of Iguania can produce four bottles of penicillin or 12 loaves of bread. Using the same resources, workers in another fictitious country, Chamelia, can produce six bottles of penicillin or eight loaves of bread.
a. Calculate the opportunity cost of producing each good in each country.
b. Which country has comparative advantage in the production of which type of good?

Each of the following events will result in either an import or export to be recorded in the current account or the capital account of Vidinland, an imaginary small country in eastern Europe. For each one, say whether it will be a current account import, a current account export, a capital account inflow, or a capital account outflow.
A. Boyan, a prominent resident of Vidinland, purchases a brand-new Swedish automobile.
B. Pete, a resident of the U.S., purchases 1,000 cases of fine wine from Vidinland.

The Canadian one dollar coin is colloquially referred to as the "loonie." Explain in words and draw a graph of the exchange market between the U.S. dollar and the loonie to show how the exchange rate will change in response to the following events. Assume that the exchange rate is expressed in dollars per loonie.
C. The Fed dramatically increases the supply of dollars in the U.S. economy.

the city. The latter devices collect multiple data: from air quality, noise or temperature to which parking lots are free or occupied on different streets or when it is necessary to water a particular park or garden. For example, buses have sensors at the top that allow to know the level of pollution in different areas of the city. They have also been installed on street lamps and walls inside small white boxes in order to measure noise, temperature or brightness. Multiple devices installed on the ground monitor how many cars are parked in certain streets while different information panels indicate the free places in a given area to park the car. Even paper containers and containers have volumetric measurement sensors that indicate how full they are. This information is especially valuable when planning collection routes, which may vary according to needs. As garbage trucks are also intelligent, it is possible to monitor their travel and activity.

Fresh milk startup Country Delight has raised $7-10 million in a Series B funding round led by venture capital firm Matrix Partners. The company claims to source milk directly from the farm, eliminating the middle men and allowing farmers to earn a premium. It also invests in cold chain and quality testing infrastructure at the farmer’s location. The company offers other milk-based products including paneer, curd and ghee through its mobile app. How do you think technology can help this startup in improving the dairy supply chain from process management to tracking products and deliveries? (10 Marks) (Source: https://www.livemint.com/companies/start-ups/country-delight-raises-funding-inround-led-by-matrix-partners-1548182312046.html)