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Say that the average worker in Canada has a productivity level of $30 per hour while the average worker in the United Kingdom has a productivity level of $25 per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at 1% per year while worker productivity in the UK grows 3% per year. After five years, who will have the higher productivity level, and by how much?
How can cultural aspects affect the level of a country’s potential GDP? For example, why might two countries with similar natural resources, education levels, technology, and capital per worker have significantly different levels of potential GDP?
Critics argue that countries relying on primary exports will experience problems of fluctuating and declining terms of trade. Explain the theory and evidence behind these arguments, and how these problems can reduce the gains from primary export t..
A monopoly has a demand curve of D (p)=150-3P. If marginal cost is equal to 2, what is the profit maximizing quantity?
If, in addition, currency deposit ratio(c) is 0.05 and excess reserve ratio (e) is 0.15, what is money multiplier. Explain why money multiplier differs from simple deposit multiplier.
The maintenance foreman of a plant in reviewing his records found that maintenance costs on a large press had increased with sales of a product that will decline in the future.
We also observe that the proportion of workers receiving disability benefits is much lower in the US than in the latter two nations. Are these findings consistent with the work-leisure model.
Suppose the own price elasticity of market demand for retail gasoline is -0.5, the Rothschild index is 0.4, and a typical gasoline retailer enjoys sales of $1,550,000 annually. What is the price elasticity of demand for a representative gasoline reta..
The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. Describe ..
"In a recent 'earnings call,' a teleconference call to shareholders in which the CEO reports and discusses quarterly earnings per share, Coca-Cola's CEO Muhtar Kent bragged about 'winning' market share from rival beverage company PepsiCo. The pursuit..
Lowering the interest rate will
Discuss the role of risk and return in the pharmaceutical industry. In the U.S. health expenditures on drugs amount to about 10% of total health expenditures. In Japan, where physicians are legally permitted to sell pharmaceuticals, national expendit..
Does the covered interest parity condition hold? Why or why not?b. How could you make a riskless profit without any money tied up assuming that there are no transaction costs in buying and or selling foreign exchange?
Find the following probabilities for a sample of n = 10 trainees selected at random. Two or more are rated as outstanding. None of the trainees are rated as unsatisfactory.
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