Solve the following.

1. The following table shows the quantities of corn supplied and demanded at different prices.

Price per Ton. 1,200 85

Quantity Supplied $80

Quantity Demanded 700 800 1,100 90 900 900 95 1,000 850

What are the equilibrium price and quantity of corn? At a price of $80, is there an excess demand or supply? By how many?

2.The table below uses data for the year 2011 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S. data. All values are in thousands. Fill in the blank entries in the table.

Country Adult Population Labor Force Employed Unemployed Unemployment Rate Labor-Force Participation Rate Japan 139,454 ? 72,510 8,500 ? ? USA 205,256 146,435 ? 11,712 ? ?

3.Compute how much each of the following items is worth in terms of 2012 dollars using 178 as the price index for 2012.

A)In 1946, the CPI was 16.7 and the price of a movie ticket was $0.30.

B)In 1952, the CPI was 25.1 and an engineer earned $40.00 a day.

C)In 1963, the CPI was 49.4 and a gallon of gas cost $0.45.

4.Assume the following open economy for Questions 1a, 1b, 1c and 1d below:

C = 200 + 0.75(Y %u2013 100)

I = 130

G = 200

X =95

M = 115

A)Determine (solve for) the equilibrium level of income or GDP (Y).

B)Determine the impact on income of a 50 increase in government spending from 200 to 250.

C)If the government seeks to increase income by 40, how much should it raise government spending?

5.Explain how the economy moves back to full employment from recession. Be sure to detail what happens to short-run aggregate supply, unemployment, equilibrium GDP and the price level.

6.Workers at a local mining company are paid $25.60 per hour, and they have incorporated a 3 percent annual raise in their contracts to account for expected inflation. Explain how unexpected inflation of 5 percent will affect the real wage and the unemployment rate.

7.If net taxes rise by $150 billion would you expect household saving to fall by $150 billion, by more than $150 billion, or by less than $150 billion?

8.The reasons why someone cannot get a job are similar to the reasons why someone cannot get a date. Using the ideas of frictionally unemployed, structurally unemployed, and cyclically unemployed, describe and explain how a student at your university might be frictionally undated, structurally undated, and cyclically undated.

9.A central concept in macroeconomics is the idea of the natural rate of unemployment. Why does it make sense to define full employment to occur when the unemployment rate equals the natural rate of unemployment, instead of when the unemployment rate equals zero? Elaborate and explain carefully.

You attempt to hire Fred to work on a project that will yield $700 in revenue if it succeeds and $100 if it fails. If Fred exerts great effort, his opportunity cost of working is $210. If Fred works little effort, his opportunity cost of working is $150. If Fred exerts great effort, the project will succeed with probability 0.6. If Fred exerts little effort, the project will succeed with probability 0.3. You must design a contract for Fred such that Fred gets paid "x" if the project succeeds and "y" if the project fails, so that Fred takes the contract and gives great effort.

(a) Calculate Fred's expected value of giving great effort in terms of "x" and "y." Make sure to include the cost of Fred's effort in your answer.

(b) Now, calculate Fred's expected value of giving little effort in terms of "x" and "y." Again, make sure to include the cost of Fred's effort in your answer.

(c) If Fred takes the contract, it must induce Fred to give great effort instead of little effort. Given this information, what is the minimum value of "x ? y"?

(d) You must now convince Fred that taking the contract is better than not taking the contract. (The expected value to Fred of not taking the contract is zero.) Determine the values of "x" and "y" that would make Fred indifferent between taking the job and giving great effort, taking the job and giving little effort, and not taking the job at all.

C...

Competition regulator Rod Sims warns that Australia Post's plan to jack-up the price of stamps to $1 is "not a done deal", as unions gear up for a concerted campaign before a final decision is made in December. Communications Minister Malcolm Turnbull has backed the beleaguered mail service's plan to introduce a two-speed mail service, with a regular service operating two days slower than the current delivery speed and the addition of a premium-rate priority service which could cost as much as $1.50 per letter. But before Australia Post can increase the price of ordinary stamps for their standard, slower service from 70 cents to $1, the Australian Competition and Consumer Commission must approve the increase. Chairman Rod Sims said they would carefully consult with industry, unions and the public before making their decision with any prise rise proposed to apply from January 4, 2016. The ACCC issues paper questions whether it is appropriate to hit consumers with a 43 per cent price rise in one-hit and whether a "price path over time" is "more appropriate". "It is not a done deal, it is extremely complex because of the cost allocation, falling demand and question of which service you focus on," ACCC chairman Rod Sims told The Australian Financial Review. "If you just look at stamps, they are still losing money in 2016-17 but does stamps underpin the bulk mail price, which [when] combined with stamps they are making money in 2016-17." The groups have commissioned a report from ACIL Allen consulting, which shows the mail industry employs 131,709 full-time jobs and contributes $14.2 billion to the economy. "It's ridiculous to increase the price of stamps by 43 per cent without considering the full ramifications on the total industry," Bill Healy of the Printing Industries Association of Australia said. Based on the above article, what kind of barriers to entry have allowed Australia Post to continue as a monopoly in providing postal services for standard mail in Australia? Explain