If the current interest rate on a one-year government bond in the United Kingdom is 10%, what does the interest-rate parity condition indicate the interest rate will be on a one-year government bond in Germany?

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Exchange rate

Suppose that the current exchange rate is €1.73=£1, but it is expected to be €1.65=£1 in one year. If the current interest rate on a one-year government bond in the United Kingdom is 10%, what does the interest-rate parity condition indicate the interest rate will be on a one-year government bond in Germany?

Assume that there are no differences in risk, liquidity, taxation, or information costs between the bonds.

 

What are the three Nash equilibria of this game? Briefly discuss how the approach in this paper is an improvement on other ways of addressing the equilibrium selection problem and also comment on any limitations.

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Micro Economics

Part 1 Equilibrium Selection Consider the following version of the example in section 2 of Kandori et al (1993). “Learn-ing, mutation, and long run equilibria in games” with students meeting in pairs every period to work together with each using one of two computer systems, si or 82. There are 9 students in the group and the payoff matrix is

  • Si
  • S2
  • S1 S2 3,3 0,0 0,0 1,1

During each period every student meets every other student once and at the end of each period, students observe the average payoffs from having each computer system. Those who have the system doing worse on average change their systems for the next period. Also at the beginning of each period, before meetings begin, each member of the group exits (mutates) with a probability E and is replaced by a student who has computer system Si with probability m and s2 with probability (1 — m). The meetings then take place with no opportunity to change computer systems during the period. Let z represent the state of the system which is the number of the nine students with computer system si and rj(z) the average payoff of a student with computer system si when the state is z.

(a) What are the three Nash equilibria of this game?

(b) Work out the values of z for which the system moves to coordination on si and for which it move to coordination on s2 (check this with average payoff calculations). Illustrate the basins of attraction on a line and indicate how many mutations are required to escape from each equilibrium.

(c) Give the intuition for why coordination on si is more likely in the long run when the mutation rate is sufficiently small and how this result is independent of m so long as m > 0.

(d) Briefly discuss how the approach in this paper is an improvement on other ways of addressing the equilibrium selection problem and also comment on any limitations.

 

Present recent and current operating results (financial performance) data in a table. Evaluate the firm’s current and recent operating results. Analyze the major economic forces that affect the firm by using relevant data in the form of tables and/or graphs. Discuss the key social and major political forces that affect the performance of the firm.

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Analyze the relationship between knowledge-based economic decision-making and economic growth.

Using a Global Fortune 500 company, you will complete a research paper that summarizes its history, conduct a SWOT analysis, and address its future.

Directions

In this Assessment, you will select a Global Fortune 500 company (it cannot be a company you work for) that operates in the United States and in other nations around the world. Make sure it is one you are interested in and has plenty of good sources of information available.

Summarize the firm’s history, the economic, social, and political forces that affect it most.
Present recent and current operating results (financial performance) data in a table. Evaluate the firm’s current and recent operating results. Analyze the major economic forces that affect the firm by using relevant data in the form of tables and/or graphs. Discuss the key social and major political forces that affect the performance of the firm.
Present a brief SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats).
Discuss the factors it will need to predict, plan for, and adjust to in the future.

How does the University of Chicago, as you know it now, satisfy your desire for a particular kind of learning, community, and future? Address with some specificity your own wishes and how they relate to UChicago.

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UChicago supplement essay

How does the University of Chicago, as you know it now, satisfy your desire for a particular kind of learning, community, and future? Address with some specificity your own wishes and how they relate to UChicago.

Create a graph that demonstrates equilibrium and excess demand. Based upon the graph you created, what price should Bond’s Gym charge for memberships in order to reach equilibrium?

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Summary

In this assignment, you will create two graphs and answer questions about Bond’s Gym, the business you are supporting.

Assignment Instructions

  1. Gather materials and necessary information.
    1. Ask your teacher which word processing software you will be using.
    2. Keep your lesson and assignment open in case you need to review what you have learned.
  2. Read and follow each set of instructions carefully.
    1. To create each graph, insert shapes and textboxes using your word processing software. To do this in Microsoft Word®:
      1. Click on the “Insert” tab
      2. Click on “Shapes” in the “Illustrations” section, and select a line or arrow shape
  • Use the mouse cursor to draw the line or arrow on the graph
  1. If you are using different word processing software, be sure to ask your teacher if you aren’t sure how to accomplish this.
  2. Make sure you complete the questions on each page.

Section 1: Supply and Demand Curves

The owner of Bond’s Gym has paid you to carry out a survey of potential customers.  You asked 600 potential customers what price they would be willing to pay to join the gym.  Then, the owner provided you data about the number of customers that can be admitted as members at each membership price.

This allowed you to create a combined supply and demand schedule for Bond’s.

Supply and Demand Schedule
Membership Price Membership Applications Memberships Available
$0 600 0
$15 450 100
$30 300 200
$45 150 300
$60 0 400

 

  1. Using the data in the supply and demand schedule, create demand and supply curves for Bond’s Gym on the following graph. Be sure to use textboxes to label the supply curve as S and the demand curve as D. (10 points)
  2. Is the demand curve shallow or steep? What does this mean about the elasticity of the demand for memberships? (5 points)
  3. Is the supply curve shallow or steep? What does this mean about the elasticity of supply for memberships? (5 points)

 

Section 2: Equilibrium and Incentives

Now, you will graph a recommended course of action for Bond’s Gym.

  1. Create a graph that demonstrates equilibrium and excess demand. Make sure your graph includes the same supply and demand curves that you just created.  In addition, label the point of equilibrium, draw a line showing the current price at Bond’s ($10), and label the excess demand on the graph. (10 points)
  2. Based upon the graph you created, what price should Bond’s Gym charge for memberships in order to reach equilibrium? (5 points)
  3. If Bond’s Gym raises prices to your recommended price, how will this affect demand for their product? (5 points)

When a country’s currency appreciates, is this generally good news or bad news for a country’s consumers? Is it generally good or bad news for the country’s businesses?

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Currency appreciates

When a country’s currency appreciates, is this generally good news or bad news for a country’s consumers? Is it generally good or bad news for the country’s businesses?
Explain your reasoning – try to use examples.

Explain GDP and its Components.

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Macro Economics

Watch the video using the following link:

https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/circular-econ-gdp-tutorial/v/circular-flow-of-income-and-expenditures

 Test your Knowledge (Question):

Explain GDP and its Components.

 Instructions 

Answer the given question in Discussion Board.

 

 

 

 

Explain Productivity and Human Capital and Physical Capital.

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Macro Economics

Read the article by using the following link:

http://www.newyorkfed.org/research/epr/01v07n1/0103stir.pdf

Test your Knowledge (Question):

Q.Explain Productivity and Human Capital and Physical Capital.

  Instructions 

Answer the given question in your own word and it should be less than 100 words.

 

 

What are the central research questions of the study? How did the researchers vary the level of fairness in the experimental design? Were the subjects matched with a “real” partner? What is the problem with this?

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Central research questions

Answer the following questions as best as possible given your understanding of the assigned reading(s).

  1. What are the central research questions of the study?
  2. How did the researchers vary the level of fairness in the experimental design?
  3. Were the subjects matched with a “real” partner? What is the problem with this? (Hint: Where was this article published?)
  4. How were subjects’ decisions connected to their earnings? Was this an issue for saliency? Explain why or why not.
  5. What were the main results from Experiment 1? What did we learn about human behavior and preferences towards fairness?
  6. What did Experiment 2 (with the fMRI) reveal about the physical connection between brain and human behavior? What did we learn about accepting unfair outcomes?
  7. What was the most interesting part of this study (to you) and what would you consider to be the central finding/take-away of the article?

 

What is the Break-Even Price and Quantity for Selfie Sticks for the graph above? What is the Minimum Price the firm above would except (what is the shutdown point) for selfie sticks?

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Assignment 7 Chapter 8 (Perfect Competition) 

Output in Thousands of Selfie Sticks

  1. Identify the Profit Maximizing Quantity for a price of $13 (Output in thousands). What is the profit or loss at this Price?
  2. What is the Break-Even Price and Quantity for Selfie Sticks for the graph above?
  3. What is the Minimum Price the firm above would except (what is the shutdown point) for selfie sticks?

 

Assignment 8 Chapter 9 (Monopoly)

Output in Thousands of Tennis Shoes

What is the profit maximizing quantity and price for the monopolist above?

How much profit is the firm earning at the profit maximizing point?

Assignment 9 Chapter 9 (Monopoly – Price discrimination and maximizing profit)

Given the average total cost of supplying a movie is $4.00 and the information below in the table, determine what price the movie theater would charge under 2 conditions:

 

(Hint: Calculate the profit by using this formula: Profit = (Price –ATC)*Q

  1. Select 1 price to charge all three groups (. Keep in mind if you select a price above a groups Maximum willingness to pay, they do not attend the movie; for example if you choose $7, the only group that will attend are the 1250 Adults)

$5                                      $6                                            $7

 

  1. Charging 3 different prices (Charge each group their willingness to Pay).

 

Type of Customer Number in each market Max Willing to Pay
Students 2000 $6.00
Adults 1250 $7.00
Seniors 750 $5.00

 

Assignment 10 Chapter 10 (Oligopoly and Monopolistic Competition)

Given the Payoff Matrix below, determine:

  1. What is the solution to the game? (What price High, Medium, or Low will each charge?)
  2. Does either business firm have a dominant strategy?

 

Moos   Quarks
  High Medium Low
High 70,70 40,35 80,10
Medium 35,40 35,35 40,20
Low 10,80 20,40 25,25