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Quesion 1: First, describe the patterns of trade. What do they export and to whom? What do they import and from whom? Is this trade large compared to their GDP?
Quesion 2: Second, try to explain these patterns of trade. What is the comparative advantage of your country? What factors do you think contribute to the comparative advantage?
Given the industry description, identify each of the following as an increasing- or constant-cost industry. a. Major League Baseball: Uses the majority of pitchers. As the number of pitchers used increased, the quality declines.
Suppose that Steve and Jill, a married couple, have decided to allocate $2,500 per year to their "dinner out" budget which will be used to eat at two types of restaurants: i) high-end, fancy restaurants and ii) typical national chain (and less exp..
What would be the cost of more butter, if the economy is at point C? What would be the cost of producing more guns? How does the shape of the production possibilities curve reflect the law of increasing opportunity costs?
After a two-year testing period, Pat prepared the patent application to patent the device, and then found that just a month earlier one of Pat's testing customers had patented the device. Pat demanded that the customer give up the patent to Pat, ..
(a) Use the Solow growth model and the equations shown below to find the steady state values of:
Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
Tiffany Baking Co. wants to arrange a $50 million in capital for manufacturing a new consumer product. The current financing plan is 60% equity capital and 40% debt capital. Compute the WACC for the following financing scenario.
In 2015, the growth rate of population was 2% while GDP grew by 2.5%.Assume that this economy is well captured by the Solow model. Wasoutput per worker higher, lower, or equal to its steady state level? Justify your answer briefly (1-2 sentences.)
These 4 independent projects are under consideration and have mostly similar life times. Do not take tax and depreciation into consideration, because the error estimates on the capital costs are still too large - this is just a preliminary screeni..
creative disruptiondiscuss the impacts that entrepreneurship and creative disruption have on existing organizations and
Compare the short and long run responses of q to a change in θ. Interpret the comparison.- Under what condition on P does higher marketing intensity increase marginal revenue?
If the actual budget deficit is $120 billion, the economy is operating $200 billion above its potential, and the marginal tax rate is 10 percent, what are the structural deficit and the cyclical surplus?
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