Theory Question 1 (4 Parts) Consider a two-period small open economy where the representative household has a utility function of the form

Find an expression for the world interest rate as a function of endowments and β. 

Theory Question 1 (2 Parts) Consider a two-period, two-country, endowment economy. Let one of the countries be the United States (U) and the other Europe (E). Households in the United States have preferences described by the utility function

Bruce and Sheila have been discussing the effects of an increase in the desire to save of the Rest of the World (RoW) on the world interest rate and the US current account balance. Bruce claims that both the world interest rate and the US current account balance should increase, while Sheila says that both should decrease. Which of the two is right?

Theory Question 2 (2 Parts) Suppose that households in the economy have the following lifetime utility function:

You are watching Mean Girls and Gretchen Weiners gets in trouble. Her line in the movie states that she “doesn’t think her dad, the inventor of Toaster Strudel, would be too please to know she is in trouble.” Toaster strudel is a real product, made my Pillsbury. This is an example of:

Which of the following is NOT an advantage of advertising in games?

You listen to the new Call Her Daddy podcast on Spotify this week. When Alex starts to narrate an ad, you tap your phone screen to fast forward and instead of seeing the usual CHD cover art, you see a graphic for Celsius water, the ad Alex is talking about. This ad is not technically a part of social media (after all, you’re listening on Spotify) but would drive some metrics trackable through different analytics. What, if any, is the “Other Form of Social Entertainment” that Celsius is using? 

Meta is the next evolution of social connection, and its goal is to enable us to socialize, learn, collaborate and play in ways that go beyond what we can imagine, including buying virtual property and virtual clothes for our virtual worlds.

What are the characteristics of a social game?