Q1) Use the information in the graph below to answer the following questions.
a. What is the quantity of labour employed at the equilibrium wage rate?
b. If minimum wage laws are imposed at a wage rate of Wm, what would be the quantity of labour demanded?
c. How many people would become unemployed as a result of the minimum wage?
d. Of those who became unemployed, how many had a job and then lost that job as a result of the minimum wage?
e. Why may firms choose to pay their employees above equilibrium wages?
Q2) Research and development is an important element for a country's continued growth and development. Some argue for extending patent protection, while others argue for limiting it. How may patents contribute to improved productivity and thus economic growth? How may patents contribute to decreased productivity, thus stifling economic growth?
Q3) Suppose Singaporeans become thriftier, consuming a smaller percentage of their income and saving a larger percent. Assume that the government budget position remains unchanged. Consider the impact in the loanable market by answering the following questions.
a. Does the supply of or demand for loanable funds shift? Does it shift to the right or the left?
b. What is the impact on real interest rates as a result of part (a)?
c. What happens to the demand for loanable funds as a result of the change in real interest rates?
d. What is likely to happen to economic growth as a result?
Q4) President Trump has been advocating protectionist trade policies for the United States. Discuss the potential costs and benefits of applying a protectionist trade policy in a country by dramatically increasing tariffs (don't forget to consider the long-run).Your discussion should be approximately half a page in length.