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Domestic consumer surplus

Assignment Help Macroeconomics
Reference no: EM131046056

You must complete two Short answer questions and one Essay question for the Exam.

All answers must be in the form of a paragraph (minimum of 5 sentences per paragraph).  Please select from below:

Short Answer

1. What is systemic and non-systemic risk?  Please provide examples of both.

2. How is the Gini coefficient related to the Lorenz curve? What do the recent results infer?

3. What are the various transfer programs the government performs?

Essay

1. Define and explain three barriers to trade.  What effect do these barriers to trade have on domestic consumer surplus?  What is the Riccardo Effect in relation to specialization and exchange?  Who benefits from specialization and exchange in terms of domestic and international consumers and producers?

2.  Define and explain the purchasing power parity (PPP).  How is inflation adjusted for within currency exchanges?  What would happen to the costs of doing business if we went back into a "Bretton Woods" type agreement?  What is a fractional reserve system and would it still be susceptible to a classic "run on the banks"?

Reference no: EM131046056

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