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Information about "Comparative advantage"
Suppose France is trading 600 units of wine to Germany for 300 machines at a relative price of 2 wine per machine. Merchants sign contracts three months before payments are made, and all merchants wish to hedge exchange risk. Describe completely all forward exchange transactions that take place when the contracts are made. Describe what actually takes place three months later.
Illustrate what is the optimal cost that the dealer should sell the tire to the customer.
Show graphically the amount of the change that is due to the substitution effect and the amount of the change that is due to the income effect.
Elucidate what would be the budget request for FY13 for this effort.
At the end of 2002, the (1-year) interest rate was 1% in the U.S., and 26% in Argentina. Recall that at the same time, the spot rate for the Argentine currency was Peso 4.00/$.
Compute the Conventional and the Modified BCR for this project. Should this investment be made.
Explain when an economy ever pursue a contractionary fiscal policy.
Is energy efficiency the same as economic efficiency? Explain. Under what circumstances would the energy-efficiency automobile described her be economic efficient?
Suppose a risk-averse consumer has an initial wealth of $5,000 and a utility function U(M) √M.. He faces an 80 percent chance of losing $4000, and a 20 percent chance of losing $0.
Describe prison labour and elucidate how it affects different cultures also societies and explain the rise and fall of labour in prisons.
Production procedures elucidate the law of increasing opportunity costs.
A firm with costs C(Q) = 1,000 + 60Q + 0.1Q2 is able to price-discriminate-What would happen if it were forced to charge all its customers the same price?
Graphically illustrate the impact of an open-market purchase by the Federal Reserve on the equilibrium interest rate using the theory of liquidity preference and the market for real money balances. (Be sure to label:
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