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Describe trade in the Ricardian model. It will be helpful to consider a situation before trade (autarky) and after trade. You will want to draw two graphs for the two situations. Remember to consider the PPF, price line, indifference curves and the equilibrium point before and after trade. You only need to do this for the home country.
Examine TWO (2) factors that may explain the ineffectiveness of the Caribbean regional integration movement.
a. Estimate the value of the firm. b. Estimate the value of the equity in the firm, and the value per share.
Any increase in the present value of taxes implies a decrease in lifetime wealth and a decrease in the current labor supply, assuming that the substitution effect is stronger than the income effect.
A competitive firm’s short-run supply curve is its ________ cost curve above its ________ cost curve. How does this policy affect the number of pretzels consumed in the short run and the long run?
Suppose that the Government wants to augment the level of national savings in the economy and institutes a policy to reward savings behavior. Hence, borrowers face a real interest r as always, but lenders receive r(1+s) on their savings, where ‘s’ is..
The cost to remove the old machine is $2000. Which are the relevant costs for the old machine?
Illustrate what is maximum amount you would pay for offer of $2,000. Suppose offer was $2,000, but delivery was to be in 2 years instead of 1 year. Illustrate what is maximum amount you would be willing to pay.
The present value of a perpetuity that pays $F every year when the annual rate of discount is i is? Consider a three-year fixed-payment security that has a present value of $1,000. If the annual rate of discount is 7 percent, the payment made at the ..
Suppose that Congress enacts a significant tax cut with the expectation that this action will stimulate aggregate demand and push up real GDP in the short eun. In fact, however, neither real GDP nor the price level changes significantly as a result o..
Draw a graph with the sales volume (S) from 0 to 100 on the x axis, and total cost and total income from $0 to $2500 on the y axis. On the graph draw the line
Suppose the People's Bank of China wishes to peg the rate of exchange of its currency, the Yuan, in terms of the U.S. dollar. In each of the following situations, should it add to or subtract from its dollar foreign exchange reserves? Why?
Price/Output Determination. Columbia Cars Inc., a rapidly expanding new entrant to this metropolitan area, is considering two proposals for the provision of its cosmetic detailing of cars (washing, waxing, polishing, engine cleaning, etc.). First, a ..
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