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But what determines the country's opportunity cost? Why German engineering is superior to other countries's engendering, for example? Or why Japanese electronics are superior that other countries' electronics?
According to the description of business fixed investment, how would you expect a firm’s investment decisionsto be affected by a sudden increase in the demand forits product? What factors would determine the speed of its reaction?
Explain, in the IS/LM/BP framework with fixed exchange rates, the impact of an autonomous increase in foreign demand for a country’s exports upon the country’s national income, money supply, and balance of payments. If there is no impact on a variabl..
We have examined four market structures so far-- (perfect) competition, monopolistic competition, oligopoly and monopoly. Please pick one market structure and find a (few) representative firm and explain why this firm's behavior is consistent with th..
Some people are saying which majority of the budget deficit are funds which some branches of the government owe to other branches.
Using the same production function as in question 4 {ie: q = (K^1/2 + L^1/2)^2} suppose that the firm is now operating in the long-run. Solve for the long-run cost function (i.e. total costs as a function of input prices and output).
Assume consumer equilibrium (budget curve and indifference curves). Draw 3 separate scenarios: (1) the price of good x decreases; (2) the price of good y increases; and (3) the budget (income increases). In each scenario, explain the effect on the gr..
Identify one product in your home that is made elsewhere. Why was this product imported? (Hint: think comparative advantage and mutual gains from trade) Some oppose free trade. What are their reasons and how does this apply to the product you identif..
Assume that the following data describe the condition of the commercial banking system: Total Reserve: $80 billion Transaction deposits: $700 billion Cash held by public: $300 billion Reserve required: 0.10. How large is the money supply (M1)?. Are t..
Why would a country such as the United States, which can presumably produce everything it needs itself, choose to trade with other nations?
CIS013-6 Develop an appropriate set of business objectives that incorporate the new online ordering system and outline the overall direction of the business over the next five years
For the country you examined in discussion 1, use the summary of types of economic systems to classify the economic system of the country. Is this an evolving economic system, i.e. a system in transition to another type of system?
First Problem The production function for fragles is f(K, L) = L/2 + K, where L is the amount of labor used and K the amount of capital used. Does this technology demonstrates increasing, constant or decreasing returns to scale? Is the marginal produ..
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