Kirsten Wandschneider

Assistant Professor of Economics and IPE

HOMEWORK ASSIGNMENTS
Remember: All homework assignments are due at the beginning of class on the date noted below. Late assignments will be punished at a rate of one letter grade per day and assignments more than three days late will not be accepted. (You will receive a scroe of 0.) There will be no exceptions from this rule, unless you have a Dean's excuse! Assignments should be typed  in 12pt font with standard margins.  Graphs may be drawn by hand on graph paper.  Staple assignments that are longer than one page and put your name in the upper right hand corner of each page.

Assignment 1 due on 9/20!

Answer Questions 7&8 on Page 31 (Chapter 1).
Answer Questions 1-3 on Page 55/56 (Chapter 2).

Assignment 2 due on 9/27!

Answer Questions 1-5 on Page 87/88 (Chapter 3).
Answer Questions 1-3 on Page 335/336 (Chapter 10).

Assignment 3 due on 10/4!

Answer Questions 1 and 2 on page 119 (Chapter 4).

Answer Questions 5 and 6 on page 119/120 (Chapter 4).

Answer Questions 9 and 10 on page 120 (Chapter 4).

Pick up readings for Tuesday outside my office (WNS 503)!

Assignment 4 due on 10/11!

Compare an import tariff with an import quota for a large country. What are the similarities and what are the differences? Discuss. Please draw two diagrams to illustrate your answer.

Now compare an import tariff with an import quota for a small country, but assume that the domestic industry is represented by a single monopolist and not by a perfectly competitive industry. Again, discuss the similarities and differences and draw two diagrams to illustrate your answer.

Answer Questions 1-3 on page 155 (Chapter 5).

Assignment 5 due on 10/25!

Answer Questions 4-7 on page 155 (Chapter 5). Solutions

Assignment 6 due on 11/8!

Answer question 1 on page 198 (Chapter 6)

Answer questions 4 & 5 on page 199 (Chapter 6)

Last Tuesday we conducted a classroom experiment simulating a foreign exchange market. Write a brief 'lab report' for this experiment (<1 page): Describe your role in the experiment, explain your trading strategy, why did you decide to trade at the price you did, why did you decide not to trade (explain all rounds). What did you learn from the experiment and the following classroom discussion? Knowing what you know now, would you have altered your strategy?

Assignment 7 due on 11/15!

In your own words, explain the concept of interest parity. What is the difference betwee covered and uncovered interest parity?

Assume you are a U.S. importer buying goods from Britain. You need to deliver a payment of £15,000 in one year and you are wondering how many dollars you will need to make the payment and whether to keep the payment in $ until the payment date comes or to convert them to British pounds immediately.
You are given the following information:
U.S. short-term interest rate 2.06%
U.K. short-term interest rate 3.63%
Spot exchange rate 1.84$/£
Expected exchange rate in one year 1.775$/£
What would you do? Please show all your work.

Assignment 8 due on 11/29!

Download HW 8 here!

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