I did Q2 and Q6.
Q2a is actually short run. Local artists should be making losses since costs of production are higher. Consumers can't make any difference should indicate price level and demand curve won't change. Now, for the imitators, some say normal profit, some say positive profit. I wrote down positive profits because imitators do not need to spend on R&D costs to develop products, they can just rip off local artists and thus enjoy lower AC/MC.
I screwed up Part C and D with the fixed fee and lump sum tax. But I think if I get the correct intuition for Part A and bits of B, there should be 10 marks for micro long Q.
Q6 is both PCM and NCM. When the question doesn't indicate which one, you should use both scenerios. Of course, it is an open economy since foreigners can walk in and buy homes. But I drew only 2 graphs and painted both fixed and flexible exchange rates. Fixed one will shift IS out first, followed by NX=0, central bank thingy and LM will shift down. In the end, same i/r but higher Y. Flexible should last shift the IS back to the original equilibrium. PCM wise, almost the same as NCM but now with capital inflow theory. That's all. No time to finish Part C but I just quickly wrote down that we can't deduce much from the info of govt spending vs public housing since the question doesn't specify if foreigners like public housing or not.
MCQ side, I think many candidates can at least get 20 marks. It was easier than prelim, in my opinion. Assuming you get 20 for MCQ, 10 for production, and 10 for macro by just drawing the PCM + NCM models, you win.
Q2a is actually short run. Local artists should be making losses since costs of production are higher. Consumers can't make any difference should indicate price level and demand curve won't change. Now, for the imitators, some say normal profit, some say positive profit. I wrote down positive profits because imitators do not need to spend on R&D costs to develop products, they can just rip off local artists and thus enjoy lower AC/MC.
I screwed up Part C and D with the fixed fee and lump sum tax. But I think if I get the correct intuition for Part A and bits of B, there should be 10 marks for micro long Q.
Q6 is both PCM and NCM. When the question doesn't indicate which one, you should use both scenerios. Of course, it is an open economy since foreigners can walk in and buy homes. But I drew only 2 graphs and painted both fixed and flexible exchange rates. Fixed one will shift IS out first, followed by NX=0, central bank thingy and LM will shift down. In the end, same i/r but higher Y. Flexible should last shift the IS back to the original equilibrium. PCM wise, almost the same as NCM but now with capital inflow theory. That's all. No time to finish Part C but I just quickly wrote down that we can't deduce much from the info of govt spending vs public housing since the question doesn't specify if foreigners like public housing or not.
MCQ side, I think many candidates can at least get 20 marks. It was easier than prelim, in my opinion. Assuming you get 20 for MCQ, 10 for production, and 10 for macro by just drawing the PCM + NCM models, you win.
same for me. i think its ridiculous for a firm to get a fee from a imitators to copy, its just like supporting piracy... was thinking fixed fee in a way its attach to each good like a per unit tax so MC shifts up instead... oh well hope i get marks 
