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Assume perfect competition. Rank the following policies in ascending order of Home welfare and explain you reasoning. If two policies are equivalent or cannot be ranked, justify your answer.
(a) Tariff of t1 in a small country corresponding to the quantity of imports M1.
(b) Tariff of t1 in a large country corresponding to the same quantity of imports M1.
(c) Tariff of t2 in a large country corresponding to the quantity of imports M2 > M1.
(d) Tariff of t2 in a large country corresponding to the quantity of imports M3 = 0.
In the hedonic pricing model of job risk, steep indifference curves indicate: A reduction in the wage causes the opportunity cost of a vacation to the Bahamas to:
Ben quit his job as an economics professor to become a gold professional. He gave up his $30,000 salary and invested his retirement fund of $50,000 (which was earning 10 percent interest) in this venture. After all expenses, his net winnings were $35..
Explain the potential supply-side effects of Paul Ryan's tax plan,
Oregon Ducks, Inc. is considering buying licenses for 12 megahertz of wireless spectrum in the 700 MHz range, which is suitable for delivering television to mobile phones. The 700 MHz signals can travel long distances and more easily penetrate walls ..
a. Construct a? 95% confidence interval for the population proportion. b. Is it plausible that it is successful for only half the? population? Explain.
The 30 minute-year mortgage on a $20,000 house that carries a 3% annual interest rate. What is the equivalent monthly interest rate (show in percentages with two decimals) What is the monthly payment on the mortgage?
Assume the market interest rate is 5 percent. What is the NPV of a $1,000 loan that carries an interest rate of 7 percent and has a maturity.
Review the “EYE on Your Life” caption titled “Allocation Methods, Efficiency, and Fairness” on page 161 in the textbook. Briefly describe whether these resources were allocated efficiently. Think about how you can check whether marginal benefit equal..
Discuss how you can influence the chief executive officer (CEO) to consider expansion and new technology.
Under what conditions are the two strategies of low cost and high quality a trade-off? Under what conditions would the efficient frontier not be an appropriate picture of the two strategies?
Mary's indifference map and budget constraint for goods x and y are shown below. If Mary spends all her money on x and y which bundle will she choose to maximize her utility?
Suppose a country has an investment opportunity that costs them 10 units of current consumption for an increase in 20 units of future consumption. The current and given real rate of interest is 10% (0.10). GDP, without the investment, in period 0 and..
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