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Assume the wages in two countries are determined by the level of education only. In country A all adults have 14 years of schooling and in country B 6 years of schooling. Using the same return to education data as in problem 1, compute the ratio of income in the two countries.
Explain why only two of the three objectives can be achieved at any point in time also they want to fix the nominal exchange rate, in order to stabilize the price level.
"Price discrimination begins and ends with a firm having market knowledge that its customers/consumers have a willingness to pay different prices." How is this type of information collected and by who? how reliable is it?
Consider a country in autarky with only two inputs, capital(K) and labor(L), that produces only two goods apples (A) and bananas (B). What is the condition for efficiency in production?
If John and Jose are not able to recognize and respect cultural differences, they may contribute to the emergence of which type of conflict?
You have maxed out your $10,000 credit card, which is being charged 12.8% interest compounded daily. What is the minimum monthly payment to continue to break even? How much should you pay each week to get out of debt within one year?
A refinery manufactures two grades of fuel, F1 and F2, by blending four types gasoline, A, B, C, D. Fuel F1 uses gasolines A, B, C, and Din the ratio 1:1:2:4, uel F2 uses the ratio 2:2:1:3. The minimum demand for F1 and F2 is 200 and 400 bl/day, resp..
Suppose the dollar interest rate and the pound sterling interest rate are the same 5 percent per year. What is the relation between the currency equilibrium $/£ exchange rate and its expected future level?
The client would like to know what output level should it select that will keep the competitor from changing its output.
The Netherlands is about to join Denmark in a free trade area. Before the union, The Netherlands imports 10 million DVD recorders from the rest of the world at $100 and adds a tariff of $30 on each recorder. It takes $110 to produce a DVD recorder in..
What is Freedom? How Can we be free? Carefully explain what the concept of freedom is according to each thinker (If a thinker has more than one conception of freedom be sure to explain each conception). Then explain each thinkers theory of how we can..
he Fed began paying interest on reserves in October 2008. Holding all else constant, what effect would this have on the money supply? When the Federal Reserve injects money into the banking system, it initially causes an excess _____ of money. Equili..
Research and present one CEO (Chief Executive Officer) pay package. Does this CEO earn more money if the company performs well? What penalty does the CEO receive if the company does not perform well?
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