Consider all questions below

2. Amazon is a classic entrepreneurial success story, which continues to report rapid growth and large profits. This question concerns Amazon's original line of business, online sales of merchandise (including video); you can disregard later ventures such as cloud storage, Alexa, Whole Foods, etc.

(a) Does this success imply that Amazon benefits from a barrier to entry into its market?You should next answer either (b) or (bN), not both.

(b) If Amazon does benefit from a barrier to entry, then what is that barrier(s)?(bN) If not, then how can you explain Amazon's continued high profits?

3. Consider a competitive, free entry market. The market is initially in equilibrium, at the point where supply intersects demand. Full credit on this question requires a graphical analysis. (You can embed that analysis within the Word document or provide it on a separate page(s), as a pdf file or in any standard image format.)

(a) Suppose that the incumbent firms are initially earning positive economic profits. After the processes of entry or exit are complete, what will determine the long run equilibrium price and quantity in this market? Will the entry or exit process increase or decrease equilibrium price and quantity, relative to the initial situation? You can assume, for all parts of the question, that there are no exogenous shifts in the demand for the good.

(b) Continuing part (a), what will happen to the price and quantity of an individual incumbent firm, though the entry or exit process?

(c) Now suppose that the incumbent firms are initially reporting positive profits but earning negative economic profits. Repeat part (a), starting from this different initial situation.

4. Suppose that you have a significant amount of accumulated savings or other wealth, and you have decided to put 20% of it into either gold or Bitcoin, as a long term "financial" investment. (This is only a "financial" investment, because it will not add to the stock of capital.)

(a) What would be the relative advantages of each (gold vs. Bitcoin)?

(b) Taking your previous answer into consideration, which would you choose (gold or Bitcoin),and why? (There is no "correct" answer to this question. You will be graded on how well you defend whichever answer you choose.)

5. Suppose that you have just been elected to run a small country, which has destroyed the credibility of its fiat money by uncontrolled printing and spending, which has led to hyperinflation, with prices doubling every day. Because no one wants to accept your country's money, you have decided to establish either the U.S. dollar or Bitcoin as the official national currency. (Ecuador, Zimbabwe, and some Central American and island nations currently use the U.S. dollar as their official currency.)Choosing the U.S. dollar will obviously not give your government the right to print new U.S. dollars;only the U.S. government can do that.

(a) What would be the relative advantages of each (dollars vs. Bitcoin)?

(b) Taking your previous answer into consideration, which would you choose (dollars or Bitcoin), and why? (There is no "correct" answer to this question. You will be graded on how well you defend whichever answer you choose.)

1. What is the problem we face In economics? Use the PPC to illustrate. (5pts) 2. Define Labour Force, Labour Force Participation Rate. Unemployment, Employment, and show how each is calculated. (5pts) 3. Define price level and Inflation. How do we calculate price level and Inflation? what are the problems associated with such calculations? (5 pts) 4. Identify the different types of unemployment and comment on the concept of full employment. (5 pts) 5. Outline the differences and similarities between the different definitions of Income. (5 pts) 6. Derive the AD In from the AE In and explain the differences/similarities between the two. (10 pts) 7. Given Ca + byd, Yd why.I= io, G=Go. X =Xo,and MumY, derive and expression for equilibrium income and the multiplier, Is this the simple multiplier or the multiplier? (10 pe 5. How can we tell the difference between AD shock and an A5 shock? (Spts) 5. What is the difference between AD and AE? (10 pts] 10. Why is the AD in downward sloping? (5 pts]4.1.53 Question Help Use the compound interest formulas A = P 1 + nt and A = Pert to solve the problem given. Round answers to the nearest cent. Find the accumulated value of an investment of $20,000 for 7 years at an interest rate of 4.5% if the money is a. compounded semiannually; b. compounded quarterly, c. compounded monthly, d. compounded continuously. MoreD Question 15 2 pts A country that exports more goods than it imports is said to have atn): O favorable balance of payment O negative trade deficit O favorable balance of trade O positive trade deficit O unfavorable balance of tradeQuestion 7 5 pts What is the method(s) not used in assessing Project Risk? Sensitivity Analysis Break Even Analysis @. Scenario Analysis Cost Benefit Analysis Question 8 5 pts When calculating the Break Even Analysis, one needs to subtract the FW of the cash inflows from the PW of the cash outflows. True False D Question 9 5 pts Scenario Analysis usually does not consider; Worst Case Scenario Do Nothing Scenario Most Likely Case Scenario Best Case Scenario OQuestion 1: Use the information in the table below to answer the following questions. Production per unit of Labor Albania Romania Wheat 24 units 16 units Beef 20 units 18 units 1i-) Does either country have an absolute advantage in the production of wheat or beef? lii-) Which country specialize in wheat? In beef? Why? liii-) What are the gains from specialization for each country? liv-) What is the opportunity cost of wheat and beef in Albania? In Romania? 1 v-) Analyze comparative advantage and opportunities for trade Albania and Romania. Explain your