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Canada is considered a small country that produces and consumes both AI and wheat, using 2 inputs: skilled labor, SL, and unskilled L, UL; AI is relatively skilled-L-intensive and, considering Canada's trade with Mexico, Canada is relatively skilled-L abundant. Make all HO model assumptions. Show the general equilibrium (GE) effects (i.e., use the PPF graph with wheat on the horizontal axis) if Canada puts on a tariff. Decompose Canada's welfare change into its components. Indicate on your graph the post-tariff: real income, production, consumption, X, and M. Use the appropriate version of the appropriate theorem to explain who would have lobbied for this tariff. Why is a tariff "second best"?
The firm's credit sales for 2008 were $10.7 million. What is the year-end 2008 balance in accounts receivable for Corn Products? (Consider a 365 days a year.)
Consider Chad, who expects to live for two periods: “now” (period 0) and the “future” (period 1). He earns an income of Io= $20,000, dollars now, and I1= $5,000 in the future when he will be retired from his full-time job. Use a consumer’s choice dia..
A permanent scholarship fund is started through a donation of $100000. If five scholarships of $5000 each are awarded each year beginning ten years from now, Calculate the rate of return for the invested money.
Illustrate what closing time should Citywide Spirits Shoppe choose to maximize profits.
Some recently visited popular priced comparison sites. Why might these retailers offer different prices to those who have and have not recently visited price comparison sites? If different prices are offered, which group will be offered the lower pri..
Tom Jackson is buying a new car. Alternative A is an American-built compact. It has an initial cost of $8900 and operating costs of 9c/
The Medicare Access and CHIP Reauthorization Act (MACRA) of 2015, is another layer of federal legislation enacted to govern clinician payment process.
If the price of labor is w=8, the price of capital is r=4, and the solution to the firm's cost minimization problem is not unique, what is the ratio of a/b equa
Bob is a 37 year old and is an account manager with a large telecom company. He's been dragging his feet with his retirement plan, opting instead for expensive trips to vegas and aspen. He has decided its time to get serious about saving for his reti..
Suppose that a U.S. dollar buys more gold in Mexico than it buys in Japan. What does the law of one price imply will happen?
What kind of economic gap will start to occur (inflationary or recessionary)?
Consider a first-price sealed-bid auction with three players: Betsy (B), Daniel (D) and Michael (M). Their valuations are vB = 100, vD = 90, and vM = 30, respectively. If their bids are bB = 90, bD = 30, and bM = 0, respectively, show that this NOT a..
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