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Coffee is one of Honduras' main exports. Assume that coffee prices fall because of a drop in world demand.
a. Assume that Honduras fixes the value of its currency, the lempira, to the dollar. Provide one method that Honduras could use to fix the value of its currency when coffee prices fall.
b. Will the fall in coffee prices decrease Honduran GDP more if Honduras has fixed exchange rates or flexible exchange rates? Why?
Draw a Keynesian Aggregate Demand and Supply Model at Full Employment and no Inflation, where there is an increase in government spending on welfare programs. What will happen to price and output? Use Keynesian Aggregate Demand and Supply Model. Show..
You are the author of a popular CSR article. For this week's discussion post, discuss the main reasons why Apple is or is not a socially responsible.
But this worry is wrongheaded because this deficit is the result of the confidence of foreign investors in Argentina's new economic system.
Suppose the demand function for good X is given by Qdx = 15-0.5Px-0.8Py where Qdx is the quantity demanded of good X, Px is the price of good X
Suppose the U.S. and Mexico both produce 2 goods, tablets and cereal, using 2 inputs, capital (K) and labor (L). The production of tablets is capital-intensive, and that of cereal is labor-intensive. The U.S. is a capital-abundant country, and Mexico..
Country A and Country B have identical population growth rates of 1 percent per annum, and everyone in each country always works 40 hours per week. Labor productivity grows at a rate of 2 percent in Country A and a rate
Suppose you are a discus hurler and your goal is to maximize the distance you achieve. You "produce" discus hurls by practicing. The total benefit of practice is distance achieved, and the input that achieves this distance is hours of practice. D..
A biotech firm is considering abandoning its old plant, built 23 years ago, and constructing a new facility that has 50% more square footage.
The cost is $200,000, the annual maintenance contract costs $5000, and the useful life (technologically) is 5 years.What is the alternative if this equipment is not selected? What other information is necessary to perform an economic evaluation of t..
Consumer surplus is used as a measure of a consumer's net benefit from purchasing a good or service.
Is tuition fee revenue likely to increase or decrease at these particular universities?
Calculate the equilibrium quantity of employment and wage rate in this labor market. What is the principle-agent problem between employers and employees in a labor market?
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