PLEASE I SWEAR, CAN YOU ANSWER THE QUESTION WITH THE CORE ECONOMY UNIT 16.4 TO 16.9 !!

QUESTION 1

Whichtwoof the following conditions lower the markup at which firm entry and exit are zero?

Select one or more:

a.Lower expected long-run tax rate.

b.Lower expected profits on foreign investments.

c.Higher opportunity cost of capital.

d.Higher risk of expropriation of owners in the home economy.

QUESTION 4

Consider Figure 16.7a below:

Whichtwoof the following options explain why the equilibrium markup line is downward sloping?

Select one or more:

a.With fewer firms in the market, firms can increase their markup implying an increase in potential profits.

b.With more firms in the market, the potential markup can increase allowing firms profits to rise.

c.More competitive behavior suggests higher elasticity of demand for the firms products.

d.The fewer firms there are, the more competitive the economy is.

QUESTION 9

In the context of trade union behaviour, any excessive wage gains achieved through negotiations will lead to different effects based on the relevant time period. Match the following effects of these wage gains with the relevant time period:

• The slow exit of firms, reducing capital stock and slowing the rate of productivity growth: ANSWER; CHOOSE BETWEEN: Long-run / Medium-run / Short-run
• Restrictive aggregate demand policies to keep inflation in check: ANSWER; CHOOSE BETWEEN:Long-run / Medium-run / Short-run

QUESTION 10

WhichTHREEof the following options refer to other dimensions linked to long-run economic performance:

Select one or more:

a.How sustainable is the relationship between economic growth and the environment?

b.How economically secure are households in terms of coping with business cycle fluctuations?

c.How important it is that workers are represented by non-inclusive trade unions.

d.How fair is the distribution of economic rewards?