1. In today’s world, globalization came under attack after the spread of coronavirus. State 2 advantages (blessings) and 2 disadvantages (curses) to globalization. In your opinion, should the US and other countries support policies towards more openness, or move towards policies that restrict globalization?
2. Discuss how the equilibrium price and quantity change when a change in demand occurs and the supply stays constant.
3. Consider a market for laptops. First, let’s assume that the price of hard drives (part needed to make laptops) went up. What will be the impact on the equilibrium price and quantity of laptops? How your answer may change if the price of printers has gone up instead. Explain your answer.
4. Back in 1920, California minimum hourly wage was $0.33. In 2018, the minimum wage was $11.00. Did workers in 1920 get paid the same (in terms of purchase power) as workers in 2018? Explain your answer. (hint: CPI in 1920 was 20 while CPI in 2018 equaled 251.1)
5. What is the Circular Flow model? What are the main components of the model? What each market in the model is meant to do?
6. Consider Jack in the Box delicious restaurant. As a student, you visit it every week. After graduating college, you (and many other students) started a job paying above $60,000 per year. What will happen to the equilibrium price and quantity of Jack in the Box burgers? Please explain? (hint: assume these burgers are inferior good)