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If, in 2005, $1 = 1.5 euro, and in 2015, $1 = 1 euro, which of the following statements would be true? A) More American tourists will find it cheaper to travel to Europe. B) More Europeans will stay home as visits to United States become more expensive. C) Europeans will import fewer products from the United States. D) Americans will import fewer products from Europe.
State whether the following firms are experiencing economies of scale or diseconomies of scale.
Elucidate how events such as the World Trade Center and Pentagon attacks described in the case study affect the aggregate demand curve.
Eric lives in Chicago and loves to eat desserts. He spends his entire weekly allowance on pudding and pie. A bowl of pudding is priced at $1.75, and a piece of apple pie is priced at $7.00. At his current consumption point, Eric's marginal rate of su..
According to the terms of the contract, the pilots will receive options to buy 14 million shares of the firm's stock over the next 10 years. What impact do you think this new contract will have on Southwest Airlines?
Suppose the nominal tariff rate on rice crackers is 0.15 (15%), and the tariff on rice (the ingredient used to make rice crackers) is 0.1 (10%). The ratio of the value of rice to the value of rice cracker is 0.9. What is the effective protection rate..
A decade ago Mirk Labs incurred $60 million in research and development coss for Zatab. Current production costs for Zatab are constant and equal to %5 per unit what whole sale price will Mirk Labs set.
You only buy apples and bananas. Your budget is such that you can purchase 3 apples and 4 bananas or 9 apples and 2 bananas. Write the equation for the budget line with bananas on the y-axis. Is that equation unique.
Assume a perfectly competitive industry. Each firm in the industry faces a long-run total cost such that LTC=14000q−80q2+q3 and LMC=14000−160q+3q2. Find the long-run quantity produced by each firm. Find the long-run equilibrium price in the market.
Should China set a fixed exchange rate regime with respect to the US dollar, or a floating exchange rate regime with respect to the US dollar? Why? What are the advantages and disadvantages of each regime? Discuss.
Mr Patel runs a motel in Tampa, FL. The market is highly competitive since there are many hotels in the surrounding areas and the average room rent per night is $35. There are 30 rooms are Mr Patels motel and each room can be rented for 30 nights a m..
Securitization is the process by which financial institutions a. pool together a group of loans and then issue securities backed by the pool. b. determine the composition of their assets that will yield the optimal amount of security for their financ..
Government policies and regulations in host countries have a major effect on the operations of foreign companies. Which of the following does not reflect a typical regulation? Which of the following statements concerning the effects of fluctuating ex..
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