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A country imposes an import fee on the crude oil it imports. Imagine that all the crude oil imports to the country are made by ships owned by its nationals. The Association of Petroleum Shippers argues that the reduction in imports resulting from the import fee will drive down the price of shipping services and thereby inflict a loss on them. The Committee for Energy Independence, which favors the import fee, argues that the reduction in shipping prices will benefit consumers of shipping services.
(a) Which argument is correct?
Suppose n firms are submitting a bid to offer their firm’s services. Your cost of providing the service is c. All of the firms will submit sealed bids. The procurement officer will look at all ofthe bids and select the lowest bid but pay to the lowes..
If average worker produces $70,000 of GDP, by how much will GDP increase if re are 140 million labour force participants and unemployment rate drops from 5.2 to 4.5 percent.
Suppose Canada's exchange rate with the euro rises from 1.2 to 1.4. This rise indicates a(n) ________ of the Canadian dollar, which means it takes ________ Canadian dollars to purchase one euro.
Should governments subsidize education? Should governmentsoperate our schools or should schools be run by private businesses?
If the ratio between the price of labor and the price of capital (w/r) is smaller than the ration between the marginal product of labor and the marginal product of capital, the firm should hire more capital. Normally the ratio between the price of a ..
Economic analysis: is this a fundamentally sound investment?
If the government wanted to increase the amount of a good produced, without the cost showing up in the budget
A new municipal power plant is being built in Highfill, AR. The initial installation will cost $25 million. Experience shows that major repair and renovation will have to occur every 5 years (beginning at year 5) at a cost of $7.5 million. Annual ope..
An investment company assesses the probability of various outcomes for the profitability of a project according to the following table:
A construction company in Kurdistan expects to spend $4,000 two years later, $8,000 three years from now, and $6,250 six years from now. What is the present worth of the planned expenditures if the interest rate remains 11.8% per year? Use standard n..
Consider the combined Solow-Romer model (i.e., there are both capital and idea stocks) that we worked through. Suppose the economy begins on a balanced growth path in the year 2000. Then in 2030, the depreciation rate ¯d rises permanently to a higher..
What are the pros and cons of the "zero interest rate policy" (i.e., very low interest rates) of the Fed, from the perspective of Automobile Industry?
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