Consider a pure exchange economy without free disposal (i.e. agents cannot get rid of their goods) and with two commodities, j = 1, 2; and two traders i = I, II. Each trader i has the consumption set R 2 + and the endowments are given by e = (eI , eII ) = ((0, 8),(10, 0)). The preference relations of traders are given by the following utility functions uI (xI,1, xI,2) = min{2xI,1 + xI,2, 3xI,2}; uII (xII,1, xII,2) = min{3xII,1 + xII,2, xII,1 + 3xII,2}. A)Characterize the set of Weakly Pareto optimal allocations and Pareto optimal allocations and core allocations. B. Characterize the demand correspondences of these traders and identify the competitive equilibrium prices and allocations. If there is none, show why. C. Determine whether or not the conclusion of the first fundamental theorem of welfare economics holds. I.e. is every competitive equilibrium allocation Pareto optimal? How about the core? Is every competitive equilibrium allocation in the core? D. Determine whether or not the conclusion of the second fundamental theorem of welfare economics holds. I.e. can we support every Pareto optimal allocation as a competitive equilibrium allocation of an economy obtained via a feasible redistribution of the initial endowments?

6. Consider the following time series data: Month 2 3 4 5 6 7 Value |24 13 20 12 19 23 15 a. Construct a time series plot. What type of pattern exists in the data? b. Develop a three-week moving average for this time series. Compute MSE and a fore- cast for week 8. c. Use a = 0.2 to compute the exponential smoothing values for the time series. Com- pute MSE and a forecast for week 8.3. Suppose the demand and supply equations are as follows: QD = 350- 12 Px Qs, = 3Px a. Compute the equilibrium price and quantity and draw the demand and supply curves. b. Compute consumer surplus (CS) and producer surplus (PS) at equilibrium. c. Explain what the values of CS and PS represent.10 poin The basic difference between macroeconomics and microeconomics is that: macroeconomics is concerned with generalization while microeconomics is concerned with specialization. microeconomics looks at the forest (aggregate markets) while macroeconomics looks at the trees (individual markets). microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets). macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries.Enter Shift Caps 4. A sole proprietor can be liable to a customer either directly (by his own actions) or 3 1735 068 505 258 vicariously through the actions of an employee. (A) Provide a factual situation that would give rise to an owner's direct actions under the fort called negligence Ctri (B) Provide a factual situation that would give rise to vicarious liability under a negligence theory. (C) Provide a factual situation that would give rise to vicarious liability for an intentional tort, 10 Points