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a.What is the equilibrium price and quantity for oil in the United States?
b.If the United States imposed a price ceiling of $18 per barrel on the oil market, would there be an excess supply or an excess demand for oil? How much?
c.Under the price ceiling, quantity supplied and quantity demanded differ. Which of the two will determine how much oil is purchased? Briefly explain why.
Describe unequivocally why the foundation of trade has nothing to do with absolute advantage and only law of comparative advantage is relevant.
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The U.S. government's expansive role in public policy is caught in a swirl of conflicting cross-currents. On the one hand, popular expectations about government's responsibility to solve problems often exceed the capacity of state and local author..
Discuss why are manufacturers’ new orders, nondefense capital goods, an appropriate leading indicator and explain w hy is the index of industrial production an appropriate coincident indicator?
Suppose that two economies initially have the same level of real income and both suffer unanticipated declines in their sales of exports of $50 billion. Country "A" has higher tax rates and a higher level of government spending than economy "B". O..
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In recent years the exchange rate of the $ has been noticeably high against the yen. If for some reason investors around the world now decide that this increase is a temporary phenomena and that the $ will fall relative to the yen in coming months..
Suppose the PRE government offers Exportian "stuff" producers an export subsidy of $3 per unit. In addition, the government imposes a tariff of $3 per unit on imports of "stuff". Calculate the price paid and quantity demanded by Exportian consumer..
n the flexible exchange rate system, discuss the effects of the following events on the exchange rate between U.S. dollar and Japanese Yen: Please indicate whether US$ will appreciate or depreciate.
Josephine makes $100 a day as a flower shop attendant. She takes off two days of work without pay to travel to another city to attend her sister's wedding. The cost of transportation for the trip is $180 round trip.
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