2.2. Elmo is a rational consumer. When buying apples and bananas in a competitive market, he chooses to buy 7 apples at $1.50 each and 4 bananas at $2.00 each. What, if anything, can we say about whether Elmo would have higher utility with each of the following commodity bundles than with his current one?

a. 8 apples and 4 bananas

b. 6 apples and 5 bananas

c. 8 apples and 3 bananas

3.Suppose that the whoople industry is perfectly competitive with constant costs and a U-shaped LRAC. Starting from long-run equilibrium, suppose that the market demand for whooples increases. Explain what will happen in the long run to (a) the price of whooples, (b) the number of whooples consumed, (c) the number of firms in the whoople industry, and (d) the quantity produced by each whoople firm. Use appropriate diagrams to support your answer and summarize the results in the table at the bottom of the page.

4.The U.S. Congress is expected to pass legislation this month lowering taxes and increasing spending for the year 2011. Fiscal stimulus is often thought to have a "multiplier" effect on aggregate demand, with $10 billion of additional stimulus leading to more than $10 billion of additional spending.

a. Explain why such a multiplier effect may occur.

b. Explain how each of these might affect the amount of output expansion resulting in the short run from each dollar of stimulus:

(1) Whether the stimulus is spending or tax reduction, and whose taxes are reduced

(2) How sensitive real interest rates are to additional government borrowing.

(3) How wages respond to increased employment.

5.Define each of the following terms: Each definition is worth 4 marks a. flexible exchange rate b marginal tax rate c. bank rate d. dumping e. Phillips Curve

6.When the Bank of Canada sells bonds to the public, (circle the appropriate answer) (i) the money supply decreases / increases (ii) interest rates decrease / increase (iii) consumer spending decreases / increases (iv) GDP decreases / increases (v) the unemployment rate decreases / increases

7.Using a diagram in your answer, show the impact of government imposing a price floor on beef.

8.What variables are included in the expenditure approach to calculating GDP?

9.If a sales tax was imposed on a product that had a price elasticity coefficient of -0.4 and a unitary price

elasticity of supply, the majority of the tax burden (or tax incidence) would fall on the consumer.

10.The law of diminishing returns suggests that the addition to total product derived from an additional unit of

input will increase initially but eventually become constant as economies of scale set in.

11.In the long-run, a monopolistically competitive firm will earn normal profits only

12.The term oligopoly describes the situation when the number of firms in an industry is so small that each

must consider the reactions of rivals in formulating its price policy.r

Question 1)

A non-diode is biased with a voltage of -0.03 V, and a diode current ofl1is measured. The thermal voltage is 26 mV and the ideality factor for the diode is 15/13. The voltage, in V, at which the measured current increases to 1.5I1is closest to ?

(Question 2)

A benchtop dc Power supply acts as an ideal 4 A current source as long as its terminal voltage is below 10 V. Beyond this point, it begins, to behave as an ideal 10 V voltage source for all load currents going down to 0 A. When connected to an ideal rheostat, find the load resistance value at which maximum power is transferred, and the corresponding load voltage and current?

(Question 3)

The static electric field inside a dielectric medium with relative permittivity,r=2.5r=2.5, expressed in cylindrical coordinate system is given by the following expression

E=ar2r+a(3r)+az6E=ar2r+a(3r)+az6

wherear,a,azar,a,azare unit vectors along r,z directions, respectively. If the above expression represents a valid electrostatic field inside the medium, then the voluem charge density associated with this field in terms of free space permittivity,00, in SI units is given by ?

(Question 4)

Consider a permanent magnet dc (PMDC) motor which is initially at rest. Att= 0, a dc voltage of 5 V is applied to the motor. Its speed monotonically increases from 0 rad/s to 6.32 rad/s in 0.5 s and finally settles to 10 rad/s. Assuming that the armature inductance of the motor is negligible, the transfer function for the motor is?

(Question 5)

Consider a negative unity feedback system with the forward path transfer functions2+s+1s32s2+2s+K,s2+s+1s32s2+2s+K,whereKKis a positive real number. The value ofKKfor which the system will have some of its poles on the imaginary axis is?