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What is the difference between absolute advantage and comparative advantage? How can a less developed country like Mexico have a comparative advantage relative to the United States?
One of the most challenging tasks for the airline manager is matching demand and supply (capacity).
According to behavioral economists, self-control problems:
Describe a shut-down decision your company has made. Compute the opportunity cost and benefits of the decision (using break-even analysis if appropriate). Did your company make the right decision? If not, what would you do differently? Compute the..
Mr. Sam K. Jones, a successful businessman, is considering erecting a small building on a commercial lot.
Should policymakers use monetary and fiscal policy to minimize fluctuations in aggregate levels of economic activity. Evaluate pros and cons of active.
A monopolistically competitive firm has the following short-run inverse demand and cost schedules for a particular product: What would happen to the firm’s demand and profit (or loss) as the firm moves toward the long run? Suppose in the long run, th..
Explain why scarcity leads to trade-offs. What determines the slope of the consumption choice budget constraint? The labor-leisure budget constraint? The intertemporal budget constraint? Does the economic approach specify what choices people should m..
Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Use a diagram to show how the existence of Santa Claus affects the supply of toys, the price of toys, t..
Should the Miami plant be closed or continue to operate at a loss in the short run? How would you explain to the incorrect party that he is wrong?
What are the components of aggregate expenditure? In the model developed in this chapter, which components vary with changes in the level of real GDP? What determines the slope of the aggregate expenditure line?
Calculate the Mean from the following Frequency Distribution:
Some city governments require that all city employees live within the city limits. What impact does this have on the elasticity of supply and or demand for employees of a city with such a requirement?
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