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Question: Suppose that two events occur simultaneously: (i) A firm in country A exports $1,000 of goods to country B and receives a $1,000 bank deposit in country B in exchange; and (ii) a country A immigrant gives $500 to a relative in country B in the form of a $500 buildup of the relative's bank account in country A. What is the impact of these two events on country A's
(a) merchandise trade balance,
(b) current account balance, and
(c) official reserve transactions balance?
You are risk averse, and your preference for family wealth (W) is specified by the relationship U(W) = 1W. The probability of a summer drought is 0.30, while the probability of summer rain is 0.70. Which of the three options should you choos..
question 1.a tax imposed on imports is called a tariff a quota a comparative advantage an excise taxquestion 2 this
what is the concentration ratio for the industry x and y. (number of firm) ----(industry x) ------ (industry y) (1) -----------------------8,750-------- --------1,750 (2) -----------------------7,500---------------- 1,725
In addition, assume that the variable cost per unit of labor is the same regardless of the number of units of labor that are hired. What is firm's fixed cost
These questions belong to economics and they are deal with microeconomics such as environmental policies on the economy. One of the neglected areas is transportation.
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to assist the sale of your products in a particular foreign market you are advised to pay a 10 percent commission to
Identify whether the following statements are positive or normative. For "positive" put a P in the blank. For "normative" put a N in the blank - Which of the following represents and acceptable trade price if each country specializes in production ..
Starting from short-run equilibrium, the following occurs: the money supply increases and labor productivity increases. What is the effect on the price level and Real GDP in the short run?
Explain how each of the following developments would affect the supply of money, the demand for money, and the interest rate. Illustrate your answers with diagrams.
the federal reserve controls the three tools of monetary policy-open market operations the discount rate and the
What happens in a competitive market when the price is above or below the equilibrium price?
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