1.Compute the producer and consumer surplus using algebraic method for the following market

Inverse Demand function: P = -2Q + 120

Supply function: P = 0.5Q + 20

2.Calculate the consumer and producers surplus in the following market

Inverse Demand function: P = -Q + 12

Supply function: P = 2Q + 6

3.Logically explain how expansionary monetary and fiscal policies help in avoiding recession

4.Bull Built, a design/build engineering company that has always given year-end bonuses in the amount of $4,000 to each of its engineers, is having cash flow problems. The president said that although Bull Built couldn't give bonuses this year, next year's bonus would be large enough to make up for this year's omission. If the interest rate is 10% per year, what is the equivalent bonus that engineers should receive next year?

5.Explain concisely the following sentence, Scarcity

shortage

goods

services

consumer

producer

favors of production

cost benefit analysis

opportunity cost

economics

trade offs

6.How do you find a firms best response function in an oligoponistic labor market

7.If you draw a card with a value of four or less from a standard deck of cards, I will pay you $7. If not, you pay me $6. (Aces are considered the highest card in the deck.

Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.

8.A firm has using two inputs to produce a single output, Q . The Firm's production function is Q=X1 1/2 X2 1/2 If input price of X1 and X2 are $2 and $8 per unit, respectively, get the necessary conditions and use it to determine:

(a) Quantity of X1 and X2 that minimizes the cost.

(b) Minimum cost if the firm produces output of 20 units.

9.What does liquidity mean in business

10.Debbie quits her job, which pays $30,000 a year, to finish her college degree. Her annual college expenses are $10,000 for tuition, $2,000 for books, and $700 for food. What is her opportunity cost of attending college for the year?