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For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces.
Which of the following is true about the comparative advantage between the two countries?
A) Switzerland has the comparative advantage in chocolate.
B) Switzerland has the comparative advantage in watches.
C) Germany has the comparative advantage in watches and chocolate.
D) Germany has the comparative advantage in watches.
Consider the Real Business Cycle model of Figure 14.11a. How does the labor supply curve need to shift for the model to explain business cycle ?uctuations? What might cause such a shift?
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List two goods for which lower gasoline prices will reduce demand, and two goods for which lower gasoline prices will increase demand.
You were recently hired to replace the manager of the Roller Division at a major conveyor-manufacturing firm, despite the manager's strong external sales record
Sketch the ppf ’s for both countries.d. Assuming no trading between the two, if both countrieswanted to have equal numbers of feet of timber and basketsof fruit, how would they allocate workers to the two sectors?
the economic union was formed in 1957 by west germany france italy belgium the netherlands and luxembourg. today 27
One of the buzz-word issues amongst policy experts in recent years has been "transparency." This has to do with the openness and fairness with which government.
Discuss, what is the rationale of consumer optimization? How we conceptualize and solve the problem of a representative consumer in Neo-classical model?
The demand curve for gardeners is Ed = 39 - 2w, where E = the number of gardeners, and w = the hourly wage. The supply curve is Es= 4 + 3w. What is the equilibrium wage and equilibrium number of gardeners hired? How much does the government receive a..
What is Zynga's profit-maximizing number of games to be published and what is the total amount of the externality at Zynga's profit-maximizing quantity?
A business experiences a sudden increase in its fixed costs and same cost CURVES?
If so, how would the differences affect the interest differential between, say, dollar and Mexican peso deposits? Do you have any guesses about how the liquidity of euro deposits may be changing over time?
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