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A current account deficit is a very healthy thing. If we can get foreigners to give us real goods and services and talk them into taking pieces of paper in return, why should we want anything different?" Do you agree or disagree with this statement?
Most college students are under age 25. Give two explanations for this-one based on the benefits people of different ages are likely to receive from higher education and one based on the opportunity costs of a college education to students of diffe..
They have the same saving rate, the same depreciation rate, the same population growth rate, and the same rate of technological progress. Both countries are described by the Solow model and are in their steady states. What would you predict for t..
Draw the supply of agricultural land. If a tax is imposed on all agricultural products, who would bear the burden of the tax, the owners of agricultural land or the producers renting that land? (producers of agricultural products are in this case ..
Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange.
Based on absolute advantage and comparative advantage, Elucidate the effect of global economic conditions on the choices available to that country.
Assume an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. What is the growth rate of its real GDP?
What do Tom's indifference curves relating Hamburgers (horizontal axis) to Hot-dogs (vertical axis) look like Graph and explain the shape of your indifference curves. Do these indifference curve imply that Tom will only eat hamburgers
Analyze the factors that influence the banks desired excess reserve ratio, r e . What would happen to the magnitude of r e if:
Suppose that in Canada the opportunity cost of producing two television sets is three bushels of wheat. Suppose that in the United States the opportunity cost of producing 2 bushels of wheat is 3 television sets.
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces, and it faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses ..
Jon Mitchell runs a small, very stable newspaper company in northern Georgia. The paper has been in business for 23 years. The total value of the firm's stock is $2 million, which Jon owns outright. This year the firm earned a total of $500,000
Attila (A) and Francis (F), live on Coconut Island and face the problem of determining the amount of military defense they need to repel a potential invasion from neighboring islanders. Defense is a jointly consumed pure public good. They agree to..
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