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What are some examples of goods that the United States has comparative advantage in producing?
Using diagrams for aggregate expenditures (AE) and aggregate demand and supply (AD-AS), show the short-run effects each of the following events has on the Canadian economy.
Consider the following: “In 1973 several major oil producing countries formed a cartel. The cartel effectively decreased the supply of crude oil. Gasoline prices rose sharply as did the total expenditures on gasoline.” Use a supply/demand diagram of ..
Suppose the market demand function is given by: Q=100-2P, where Q: total quantity, P: market price. And in this market there are two firms with MC=AV= $10. Find each of the following: Perfect competition price, quantity, and consumer surplus? Monopol..
What are the basic ways of dealing with externalities? Briefly describe the pros and cons of each. There is no toll for using a freeway during rush hour. Explain why economists think this is unwise (i.e. use economics to explain why we should have a ..
Halcrow,Inc., expects to replace a downtime tracking system currently installed on CNC machines. The challenger system has first cost of $70,000, an estimated annual operating cost of $20,000, a maximum useful life of 5 years, and a $10,000 salvage v..
When the price of gasoline increased from 3 to 4 dollars per gallon, the demand for gasoline decreased from 100,000 gallons to 90,000 daily. Also, the demand for a $50,000 SUV dropped from 3000 to 2500 cars per month. Estimate the price elasticity of..
q.firms often face the problem of allocating an input in fixed provide among different products. find out the optimal
Discuss a real world example that could, or has already, caused a shift in either the AD (aggregate demand) or SRAS (short run aggregate supply) curves for the US economy, or some other country.
Assume that GDP (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y – T). Investment (I) is given by the equation I = 2,000 – 100r, where r is the real rate of interest in percent. Taxes (T) are 500 and government spending (G) is a..
Quantity: Increase/Decrease (select one) Determinant: One of the determinants for demand (TRIBE) or supply (ROTTEN) that causes the shift. a) The price of natural gas, a resource used by manufacturers throughout the United States, doubles.
If the current exchange rate is 1.2 Canadian Dollars per Euro and the 3-month forward exchange rate is 1.25 Canadian Dollars per Euro, should a resident of Canada invest in the Canada Savings Bond or in the Euro-bond?
You work for a hotel chain that is considering expanding into international markets and you are looking for the right person to help oversee that process. You identify a top employee at another firm who seems to have exactly the skill set needed to h..
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