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The Internet has allowed for increased trade in services such as programming and technical support, a development that has lowered the prices of such services relative to those of manufactured goods. India in particular has been recently viewed as an "exporter" of technology-based services, an area in which the United States had been a major exporter. Using manufacturing and services as tradable goods create a standard trade model for the U.S. and Indian economies that shows how relative price declines in exportable services that lead to the "outsourcing" of services can reduce welfare in the United States and increase welfare in India.
If the two firms pick different prices, the high-price firm earns a profit of $20 and the low-price firm earns a profit of $90.
In what form is capital income paid when businesses own capital?
The City of Greenville needs to raise revenue. Alderman Black has proposed a $10 tax on red cars in the city, currently numbering 2,000. Mayor White, who wants more than $20,000 in revenue, proposes taxing these cars at $100 each.
illustrate the market for theater tickets in the case of these two externalities. Again, label the demand curve, the social-value curve, the supply curve, the social-cost curve, the market equilibrium level of output, the efficient level of output..
Why might a tax on domestic consumption of resources critical for national security be a more efficient approach than barriers to imports?
a firm produces according to the following production function: Q=k^.5L^.5 where q= units of output, k= units of capital, and L= units of labor. suppose that in the short run k=100. moreover, wage of labor is w=5 and price of the product
Discuss some criteria that should be met.
How would you run the auction? Do a benefit-cost analysis of the auction relative to how you currently buy or sell.
some fields have large enough quantities of both oil and natural gas that coordination must be achieved for production of both, rather than oil alone as in our examples. will field with both oil and gas have greater difficulties in unitization tha..
a machine at a cost of $5000 was purchased 3 years ago. It can be sold now for $3000. If the machine is kept, the annual operating and maintenance costs will be $1500. If it is kept and operated for the next five years,
An economy can produce a maximum of either 28 million tons of wheat or 7,000 automobiles, or various intermediate quantities, as depicted in the table below: Wheat (millions of tons) A=28,B =27,C= 25,D= 22,E =18,F= 13,G= 7,H =0 Automobiles (thousa..
discuss how to construct valid tests of the hypotheses in (c), (d) and (e), and carry them out.
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