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 [10-1] One of the only two dukes in Neverland, Duke Rez and Duke Dax, is the true expert in economics. Which one of these two dukes is the true expert in economics? Duke (Write the name of the duke) Briefly explain why? (4%)

[10-2] If before EU sanction, e = 1, import = N$8, then net export = __________? (2%)

[10-3] Before EU sanction, total output of the Neverland economy =________? nominal GDP=________? real GDP=________? permanent disposable nominal income =________? (8%)

[10-4] Okun's law expert Sir White showed that wu = -1 /2 x ( X/X-3%),where a is actual unemployment rate. According to the empirical findings of both Sir White and the duke who is the true expert in economics, the percentage change in Neverland unemployment rate as a result of the EU sanction = ________? (2%)

[10-5] Define X for Sir White. (2%)

[10-6] Is Neverland an open ceconomy or a closed economy? Brietfly explain why?(2%)

[10-7] Sir Pelleas, the new Prime Minister of Neverland, vows to reduce the emission of greenhouse gases by 2035 by up to 85 percent below the 1990 levels. Sir Lancelot, the Minister of Technology, showed to the members of the Cabinet a newly invented piece of material for glass windows. "The progress of our country's reaction engineering project has been incredible. WINMA, the compound material developed by the project, through the chemical reaction of carbon dioxide replacement, can largely and quickly absorb carbon dioxide in the air."

Sir Dagonet, the Minister of Environment and Climate Change said, "The project helps significantly reduce the greenhouse effects." Which of the following Cabinet member's arguent most strongly supports Sir Dagonet's argument? Sir                      's. (Write the name of the minister) Bricfly explain why? (5%) ■Sir Dinadan, the Minister of Economic Affairs, said, ''The firms that produce WINMA all incur significant economic losses this year. However, due primarily to both economies of scale and learning effects, the net carnings of companies in the industry will eventually exceed the required earnings.■ Sir Gawain, the Minister of Planning, said, "The per unit materials price of WINMA has been 150% greater than that of tempered glass and 250% greater than that of conventional glass. The former unit price, however, is likely to decrease by at least 70% in two years as more WINMA is used by the construction firms.■ Sir Bors de Ganis, the Minister of National Sccurity, said, "Most glass touchscreens are weakened over time by an accumulation of small scratches and fractures, which eventually contribute to their breaking or shattering when dropped. WINMA, neverthcless, is not subject to such problems and is thus much harder than tempered glass."■ Sir Lionell, the Minister of Statistics and Programme Implementation, said, "According to the historical data, the economic lives of tempered glass and conventional glass products are significantly shorter than those corresponding to WINMA."■Sir Percival, the Minister of Industry Innovation and Science, said, 'During the full process of producing per square feet of WINMA, significantly less fossil fuel is consumed as compared with that corresponding to tempered glass and   conventional glass. ■Sir Kay, the Minister of Media, said, " WINMA receives vastly less media coverage than it should have been."

Question 11. Anita consumes both pizza and pepsi. The following tables show the amount of utility she obtains from different amounts of these two goods:  Suppose Pepsi costs $0.50 per can, pizza costs $1 per slice, and Anita has $9 to spend on food and drink. What combination of pizza and Pepsi will maximize her utility? (10%)

a. As the price of tickets riscs from $200 to $250, what is the price elasticity of dernand for (i) busincss travelers and (i) vacationers? (Use the midpoint method in your calculations.) (10%)

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