QUESTION 20

Macroeconomic Information for Mexico:
2020 Q2 GDP (in 2020 Q2 pesos)    4.97 trillion pesos
2020 Q1 GDP (in 2020 Q1 pesos)    6.09 trillion pesos
2020 Q2 GDP (in 2015 pesos)    3.76 trillion pesos
2020 Q1 GDP (in 2015 pesos)    4.54 trillion pesos

Calculate Mexico’s real GDP growth rate between the first and second quarters of 2020.

(Enter your answer in percent form, rounded to one decimal place, without the percent sign.  For example, if your answer is 0.12345, enter 12.3.)

QUESTION 21

Macroeconomic Information for Mexico:
2020 Q2 GDP (in 2020 Q2 pesos)    4.97 trillion pesos
2020 Q1 GDP (in 2020 Q1 pesos)    6.09 trillion pesos
2020 Q2 GDP (in 2015 pesos)    3.76 trillion pesos
2020 Q1 GDP (in 2015 pesos)    4.54 trillion pesos

Calculate Mexico’s inflation, using the GDP deflator method, between the first and second quarters of 2020.

(Enter your answer in percent form, rounded to one decimal place, without the percent sign.  For example, if your answer is 0.12345, enter 12.3.)

QUESTION 22

Based on your answers from #20 and #21, use the aggregate supply/aggregate demand model to explain what is happening in the Mexican economy.  Your answer should indicate which curve is moving and in what direction, as well as how you know this.

QUESTION 23

Based on your answers from #20 and #21, is Mexico’s short-run aggregate supply curve flat or steep?  How do you know?

QUESTION 24

What fiscal policy do you recommend that Mexico use to resolve the problem you identified in #23?  Be as specific as possible.  Why?

PLEASE USE THE ATTACHMENT

This competency assessment assesses the following Outcome:

BU224M2-2: Examine changes in price and quantity caused when governments take actions to modify market outcomes.

In a perfectly competitive market, the equilibrium price and quantity represent the most efficient operation of that market. Optimum efficiency means that sellers cannot be made better off without, at the same time, making buyers worse off, and that buyers cannot be made better off, without making the sellers worse off. This Assignment presents a scenario in which a government tries to improve the financial position of the sellers, in such a perfectly competitive market, by instituting a legal price floor that is significantly above the equilibrium price. A price floor is the lowest price for which a seller can legally sell the product.

In this assessment, you will demonstrate your understanding and ability to correctly calculate the consumer surplus, producer surplus, and total surplus both before a price floor is established and after a price floor is enacted. Additionally, you will demonstrate an understanding of the impact on the entire economy, based on any changes in taxes required, if the government is to purchase any extra product that is not sold to consumers.

This assessment presents a scenario in which a government tries to improve the financial position of the sellers, in such a perfectly competitive market, by instituting a legal price floor that is significantly above the equilibrium price. A price floor is the lowest price for which a seller can legally sell the product.

Directions:

Using the Word template provided in the Minimum Submission Requirements, answer the following questions based on the situation.

Questions

Suppose that the Gondwanaland chairman of production, who sets the governmental price floor for gosum berries, in an effort to assist the gosum berry producers to have a higher income, sets the price floor at $70 per barrel. In that particular year, the amount of gosum berries produced at the $70 price floor was 700 barrels per month. To support the price of gosum berries, the Chairman of Productions Office had to purchase 400 barrels per month. The accompanying chart and diagram shows supply and demand curves illustrating the market for Gondwanaland gosum berries.

(Description: The diagram shows a graph with the Quantity along the horizontal axis and Price along the vertical axis. A blue downward sloping line, labeled D represents the Demand curve for the data in the accompanying chart. A red upward sloping line, labeled S represents the Supply curve for the data in the accompanying chart. The point where the two lines cross is labeled E and represents the Equilibrium Quantity and Price. A gray dotted line extends downward from the point labeled E to the horizontal axis and points to the quantity of 500. Another gray dotted line extends from the point labeled E and extends to the right to the vertical axis and points at the price of $50. A black line crosses the graph to the horizontal axis at a price of $70 and is labeled Price Floor. A red dashed line extends from the point where the black line crosses the red Supply curve and extends down to the horizontal axis and points to the quantity 700. A blue dashed line extends from the point where the black line crosses the blue demand curve and extends down to the horizontal axis, pointing to the quantity of 300.)

a. In the absence of a price floor, the maximum price that a few of the consumers are willing to pay is up to $100 per barrel of gosum berries. The market equilibrium (E) price is $50 per barrel. How much consumer surplus is created when there is no price floor? Show your calculations.

b. How much producer surplus is created when there is no price floor? Show your calculations.

c. What is the total surplus when there is no price floor? Show your calculations.

d. After the price floor is instituted, the legal minimum price that can be charged by suppliers is $70 per barrel. The maximum price that a few of the consumers are still willing to pay is $100 per barrel of gosum berries. With the price floor at $70 per barrel, consumers buy 300 barrels of gosum berries per month. How much consumer surplus is created with the price floor? Show your calculations.

e. After the price floor is instituted, the Chairman of Productions Office buys up any barrels of gosum berries that the producers are not able to sell. With the price floor, the producers sell 300 barrels per month to consumers, but the producers, at this high price floor, produce 700 barrels per month. How much producer surplus is created with the price floor? Show your calculations.

f. The Chairman of Productions Office buys any barrels of gosum berries that the producers are not able to sell. With the price floor, the producers sell 300 barrels per month to consumers; but the producers, at this high price floor, produce 700 barrels per month. How much money does the chairman of productions office spend on buying up gosum berries? Show your calculations.

g. The Emperor of Gondwanaland must collect taxes from the people to pay for the purchases of surplus gosum berries by the Chairman of Productions Office. As a result, total surplus (producer plus consumer) is reduced by the amount the Chairman of Productions Office spent on buying surplus gosum berries. Using your answers for problems d, e, and f above, what is the total surplus when there is a price floor? Show your calculations.

h. How does this compare to the total surplus without a price floor from question c above? Is it more, or less, and by how much?

Term Paper Topic: Economic impact of the Internet Revolution in the Economy

( Focus on the microeconomic impact)

The paper is to be a minimum of 1200 words; double spaced; Times Roman 12 pt font. It is to be written using Microsoft Word in APA format documenting a minimum of five references.

Please do your own research, collect data and graph and present it in the paper.

In the second quarter of 2020, Mexico’s total investment amounted to 900 billion pesos.  Inventories increased by 81 billion pesos during this same period.  What was Mexico’s planned investment?

(Do not enter the zeros for billions in your answer.  For example, if your answer is 10 billion pesos, enter 10.)

1 points 
QUESTION 5

Inflation in Mexico (using the CPI method) rose from 4.01% in August 2020 to 4.09% in October 2020.  By how many percentage points should real interest rates have changed over the same period, assuming that nominal interest rates have remained fixed during this time?

(Round your answer to two decimal places.  If real interest rates fell, be sure to include a negative sign.  Do not include a percentage sign.)

1 points 
QUESTION 6

Mexico’s real GDP fell from 4.5 trillion pesos to 3.8 trillion pesos over the first part of 2020.  In that same time, its consumer spending fell from 3.1 trillion pesos to 2.5 trillion pesos.

Assume that real GDP represents disposable income.  Using these values, what is the size of the government spending multiplier?

(Round answers to one decimal place.)

1 points 

The very open ended nature of the essay assignment is meant to fulfill several objectives.
1) Acquaint students with library resources and searching for appropriate academic material.
2) Have students practice their comprehension skills and communicate that comprehension in a concise summary.
3) Get students to start thinking critically about theories and arguments
4) Force students to go over the course material to determine which topics are applicable to their essay and demonstrate an understanding of the course material.

While Saudi Arabia seeks to diversify its economy, the Saudi economy is dominated by the petroleum sector. In addition, the Saudi Arabian Riyal (SAR) is pegged to the U.S. Dollar.

In a critical essay, discuss the advantages and disadvantages of the pegged exchange rate.
Indicate the main considerations Saudi Arabia faces from a currency perspective (e.g., currency values, interest rates, inflation, and trade issues) that ensue given two scenarios:

The first scenario is a dramatically declining world oil price.
The second scenario is a dramatically increasing world oil price.

Directions:

Your essay is required to be four pages in length, which does not include the title page and reference pages,

Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles.

follow APA style guidelines.

the textbook (9781337558938 ebook: 9781337671224    International economics    17    Cengage Learning.    Carbaugh, R. J.    2019)
and at least 4 scholarly, peer-reviewed journal articles.

make sure the refrncess is scholarly, peer-reviewed journal articles or use the below
EBSCO
EMERALd
Proquest
Science direct

List:

Profits, Markets, Competition, Market Structure, Labor Costs, Innovation, Entrepreneurial ability, Improvements in technology, Productivity, Comparative Advantage, Physical Capital, Government Regulations, Business Incentives, Economies of Scale, Profit Maximization, Product Differentiation, Brand Name, Advertising

General Instructions:

Choose one concept from the list above, and write a paper a 350 to 500 word paper  in which you state a response to the following prompt;

“Before participating in the Graded Discussion 2, I thought about (one of the concepts from the list) in this way …, now I think … “.

You are free to organize and arrange your sentences and paragraphs in any you see fit, but your response MUST at least have the following 5 elements:

It must state and define the concept or idea.

It must explain how you viewed or understood the concept before this class.

It must explain your new way of viewing, or understanding the concept.

It must say the reason why your perspective, or understanding changed. In other words, what did you do, see, or hear as a result of this class that helped transform your opinion.

It must have information, data or facts, that supports the reason for your change. The information, data or facts can be presented in the form of an example, or as part of an explanation

If appropriate, cite references using in-text APA citation style. In-text citations are placed within sentences and paragraphs.  Stick to the 500 word maximum

Using following sources:
F. Kleemann, G. Vob, and K. Rieder, Un (der) paid Innovators: The Commercial Utilization of Consumer Work through Crowdsourcing,

Agrawal, Ajay, Christian Catalini, and Avi Goldfarb. “Some simple economics of crowdfunding.” Innovation policy and the economy 14.1 (2014): 63-97.

Belleflamme, Paul, Thomas Lambert, and Armin Schwienbacher. “Crowdfunding: Tapping the right crowd.” Journal of business venturing 29.5 (2014): 585-609.

Davies, Rodrigo. “Civic crowdfunding: participatory communities, entrepreneurs and the political economy of place.” Entrepreneurs and the Political Economy of Place (May 9, 2014)(2014).

Prospect theory: An analysis of decision under risk D Kahneman, A Tversky Handbook of the fundamentals of financial decision making: Part I, 99-12

Thinking, fast and slow D Kahneman Farrar Straus Giroux

Prepare a one page explanation of financial decision making behind the Crowdfunding projects