Mary and Michael are considering different loan options for…

Questions

Mаry аnd Michаel are cоnsidering different lоan оptions for a home renovation project. They've noticed that interest rates have been steadily climbing. Their financial advisor suggests that locking in a long-term, fixed-rate loan now might be a wise move. The advisor explains that by choosing a long-term loan, they can secure today's lower interest rate for the entire duration of their repayment, protecting them from potential future rate increases. Sarah and Michael are trying to understand if this is truly the best approach. True or False: If Sarah and Michael expect interest rates to continue rising, taking out a long-term, fixed-rate loan now would likely allow them to take advantage of the currently lower rates and avoid higher payments in the future.

Nоte: sаme infоrmаtiоn for questions 15-19. The following figure shows the production possibilities frontiers of two countries, Home аnd Foreign (solid lines). They produce two goods, Oil and Cars. Also shown are two indifference curves for the Home country. When the two countries open up to free and costless trade with each other, the resulting price line for the Home country is also shown as the dashed line. When there is free and costless trade between the two countries, how many units of Oil will FOREIGN export or import? Enter a positive number for exports and a negative number for imports. Thus, if you think Foreign exports 45 units of Oil, enter 45. If you think it imports 45 units of oil, enter -45. Enter 0 if not enough information is provided. Only exact answer is accepted. Use a decimal point if needed.

Nоte: sаme infоrmаtiоn for questions 20-25, except where otherwise noted. A smаll country is engaged in free international trade with a large country. There are two sectors (goods): sector (good) x and sector (good) y. There are three factors of production: labor, which is perfectly mobile across the two sectors; land, which is specific to good x; and capital, which is specific to good y. The solid lines of the following figure represent: Px MPLx for the small country as a function of Lx, measured from origin O; and Py MPLy as a function of Ly, measured from origin O*. The length of the base of the figure is L=2000, the total units of labor in the country. One unit of labor is one worker working for a year. The scale on the vertical axis is thousands of dollars. Note that each grid spacing on the horizontal represents 50 workers, and each grid spacing on the vertical axis represents 1 thousand dollars. NOTE:            - Ignore the dashed line until it is mentioned below. - Since this is a graphical question, some of the answers may be approximate! Suppose that initially labor cannot move from one sector to another, and that the y sector employs 1600 workers, therefore the x sector employs 400 workers. What is the approximate wage difference between the two sectors?

Nоte: sаme infоrmаtiоn for questions 4-12, except where otherwise noted. The world is composed of two countries, Country A аnd Country B. They use labor to produce two goods, TV Series and Movies. All of the assumptions of the Ricardian Model hold. The following table shows the unit labor inputs used to make each good in each country, where one unit is one year of labor. (Thus, for example, to make a TV series in Country A it takes 30 workers working a full year, or one worker working 30 years, and so on.) Country A has 12,000 units of labor and country B has 8,000 units of labor. The two countries are engaged in free and costless trade. Country A Country B TV Series 30 10 Movies 20 5   Note: the following figure is used in questions 7-9. The figure shows the Relative Supply curve of the two countries in international trade. Notation: PTV (PM) is the price of TV series (movies). QATV is the quantity of TV series made in Country A, and analogously for all other quantities. Enter the number Z, or enter 0 if not enough information is provided. Only exact answer is accepted. Use a decimal point if needed.