Questions:
1. Describe the process of determination of the exchange rates between currencies. Show a diagram. Explain fixed vs flexible exhcange rae notino. Show once a month exchange rate betweem 10 word currencies over the past 5 years( 60 months)
2.Clarify what is absolute and comparative advantage for any nation. Show and explain a sample diagram demonstrating the notion.(See text of other sources for samples). Dicuss arguments againsts free trade; infant industry ; Countering foreign subsidies; protecting domestic jobs and emerging arguments.
3) Allude to three important reasons why nations trade. (Benefits of free trade) Who gains and who loses from a protective policies? Explain several cureent actions by the US which where considered protective.
4) Discuss measuring income distribution using a geometric representation called the Lorenz curve. Explain the theories of desired income distribution using Productivity; and Access to eduation. Define poverty(Absolute and Relative). Show family data over past 20years in US.
5) Make a case for the notion of a negative or postive externality. Show model that illustrate how to internalize the market failure. What are alternative governmenjt interventions to cure issues.
6)a) Describe the notion of balance of trade accounting?
B) Descirbe the following current accounts: Merchandise trade exports and imports; Service exports and imports; Unilateral Transfers. Research and explain the past 5 years data activity for the U.S vs. ROW.
C) Relativev to the Capital account discuss the U.S. private capital flows going abroad and the foreign capital into the United States. Show how the balance has change since 1970's until 2008. What was the impact of this change of direction on the current account?
7) Discuss the economic effects of third-party payers in Health Care demand. How do medical- saving- accounts mitigate this effect? Discuss what have been the results of testing medical saving account in USA. Can new government insurance help this situation?