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What do you think of an idea of comparative advantage as a basis of international division of labor? Do you agree or disagree with it? Try to provide an example of international production division that supports your opinion.
Suppose that the equilibrium nominal exchange rate is 130 Japanese yen to the U.S. dollar. If the Federal Reserve wishes to maintain an exchange rate of 140 Japanese yen to the U.S. dollar, it must meet the private excess ________ dollars in the fore..
Market failure is a situation in which a given market does not efficiently organize production or allocate goods and services to consumers. Overcoming market failure is a significant challenge for the government, which is not easy to accomplish and m..
Consider an economy with the following Cobb-Douglass production function: Derive the equation describing labor demand in this economy as a function of the real wage and capital. The economy has 27,000 units of capital and a labor force of 1000 worker..
Discuss the advantages and disadvantages of doing business as a Sole Proprietorship, Partnership, Corporation and Limited Liability Company.
Consider a perfectly competitive market. Analyze and explain in detail using graphical tools to show what you expect to happen to number of firms and firm profitability in the short run and long run.
A MRI technician takes 45 minutes to complete a MRI. Each MRI costs $66 in supplies, and the technician earns $38 per hour. The rent of the machine is $840,000 per year. What is the incremental cost and the average cost of a MRI when the monthly v..
Define and identify the market for each of the following products in terms of (1) market scope (local, regional, national, international ( state your reasons why you classify them as local, regional, national or global in scope), (2) likely character..
Suppose a politician promises a program that will give Amanda and Britney 70 units of utility for each.
For a given firm the MRPL = $50, and the MRPK = $100, while the PL = $10 and the PK = $20. What are the general case rules for producing at least cost and maximizing profits? Is the above firm maximizing profits? Why or why not? What (if anything) ca..
Consider a country Z thinking of pegging its currency to the euro as a base currency. If this country has a FEAR OF FLOATING, then it would be willing to peg its exchange rate at higher levels of integration and similarity.
Indicate whether each of the following involves an upward or downward shift in the long-run average cost curve or, instead, involves a leftward or rightward movement along a given curve. Also indicate whether each will have an increasing, decreasing ..
A firm produces output using two factors of production according to technology f(x1, x2) = (x1^1/2)(x2^1/4). The price of output is 4. Factors 1 and 2 cost to the firm w1 and w2 per unit, respectively. (i) Write an expression for the firm’s profit. (..
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