QUESTION #1

A) The new administration has hired you to develop economic incentives that would get firms to improve their levels of technology in order to boost productivity. Create and describe three or more incentives that you would recommend.

B) On the heels of your success in A), you are asked to outline a strategy for increasing the long term rate of economic growth in the American economy. Please outline that strategy.

QUESTION #2

What happens to the equilibrium price and quantity of chicken sold in grocery stores in response to each of the following? Explain your answers.

A) The price of chicken feed drops.

B) It is discovered that chicken provides more health benefits than other meats.

C) Research raises concerns about the health effects on humans from antibiotics fed to chickens.

D) The price of beef rises.

QUESTION #3

Suppose the demand and supply curves for nurses have the typical shapes and that the market is in equilibrium. Then, the government establishes a wage ceiling below the equilibrium point.

A) Explain what happens to the supply of nurses.

B) Explain what happens to the demand for nurses.

Now say a wage floor is set above the equilibrium point

C) Explain how the demand for nurses changes

D) Explain how the supply of nurses changes.

QUESTION #4

Using demand and supply curves, show and explain the effect of each of the following on the market for chocolate candy bars:

A) The price of sugar rises.

B) It is proven that cocoa has positive health benefits.

C) Productivity increases in factories that produce chocolate bars.

D) There is a drought in areas where cocoa is grown.

E) Low carbohydrate diets decline in popularity.

Any sources used must be cited according to APA standards.