Answer all the Questions. (Word Limit: 2000-2500 words) Section I. 1. Explain how by reducing the supply of money, the central banks can move the equilibrium in the market for money. Use demand and supply charts to explain. (You can use referenced charts from Internet or draw by hand or on Excel) (10 marks) 2. The Fisho company produces tuna cans. Fixed costs are $1000 to run the business. Fill in for fixed cost (FC), total cost (TC), average variable cost (AVC), average total cost (ATC), marginal cost (MC), round at 1 decimal place. At which quantity level is the efficient production achieved? Qty VC FC TC AVC ATC MC 0 1000 100 1500 300 3000 500 6000 700 8000 800 11000 1000 Assume that Marginal Revenue is equal to 100, in this case is maximization of profit consistent with the efficient production point? What can we conclude about the profit there? (Total: 20 marks) 3. Calculate the following elasticities: Price: $100 increases to $110 Quantity supplied: 100 increases to 120. Explain the category of elasticity of this good. Price: $1 increase to $5 Quantity demanded: remains at 1000. Explain the category of elasticity of this good. Price: $1 increase to $1.20 Quantity demanded: 200 decreases to 180. Explain the category of elasticity of this good. (10 marks) Al Tareeqah Management Studies - 2023 4 4. Using the concept of elasticity, explain how an increase in the price of Korean cars could boost the sales of Japanese cars. (10 marks) Section II. 1. Study the nurses' strike in England. Show how the strikers' demands for pay and compensation can be explained by the demand and supply in the country. Answer this question like an essay with an introduction and a conclusion and 2/3 sections in between. Use 10 unique professional/academic references. Tips: Include charts with data to illustrate your answer and present the salary data and compare with other similar countries. (25 marks) 1. Explain the comparative advantage concept in the case of 2 countries of your choice. Tips: Introduction and conclusion are not needed but you select two countries with important trade relationships. (15 marks)