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The United States appears at times to have a totally schizophrenic attitude toward protectionism. The United States was the country that proposed the establishment of the World Trade Organization as early as the late 1940s, and was also the only industrialized country that refused to ratify this at that time. The United States has consistently argued on the side of multinational free trade in GATT Rounds, and yet maintains many protectionist laws such as those which reserve oil shipments from Alaska to U.S. flag carriers. How can you explain this apparent lack of national consistency on this issue?
Describe how expectations can influence the effectiveness of discretionary policy. Using an AD-AS diagram, illustrate the short-run effects on prices, output, and employment of an increase in the money supply that is correctly anticipated by the publ..
In the country of Economica, the total labor force consists of 15,000 workers. 750 of these workers are unemployed, and thus the current unemployment rate is 5.0%.
Dan and Carla met as employees at a candy company and later married. Carla went on to study accounting and Dan earned a business degree. After working for various businesses and raising $10,000 to open their own business one day, What are the pros an..
The inverse demand function for bean sprouts were given by P(Y)=290-4Y , and the total cost of producing Y units for any firm were TC(Y)=50Y and if the industry consisted of two Cournot duopolists, then what is the equilibrium of each firm's producti..
Which of the following is often not a disadvantage of decentralization?
If the tort system were deemed a method of social insurance rather than one of deterrence of uneconomical accidents, would awards in tort cases be on average higher or lower than under the deterrence rationale? (Using the perspective of economics)
We grow wheat that sells for $40,000. The wheat is milled into flour that sells for $55,000. The flour is used to bake bread that sells to consumers for $90,000. If nGDP is $9000 billion while rGDP is $12,000 then the GDP deflator is...
If you want to have $301,301 in 19 years, how much money should you put in a savings account today? Assume that the savings account pays you 6.99 percent, compounded monthly. Cooling Tools, Inc. is currently producing 671 of small refrigerators per m..
Anthony is considering the purchase of used car. The price, including the title and taxes, is $9,530. Anthony is able to make a $2,530 down payment. The balance, $7,000, will be borrowed from the Credit Union at an interest rate of 9.25% compounded d..
explaining the effect of demographics on public revenue sources.
Suppose the market for milk. For each of the following events, state whether it affects supply or demand, which direction supply or demand shifts, the effect on price, and the effect on quantity.
What is the policy of import substitution? Has this policy worked for the developing countries? If not, what are the problems of this policy? Mention any two benefits of export promotion policy.
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