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Increased outsourcing to India by firms in the United States and other developed countries has driven up the wage of some Indian skilled workers by 10% to 15%.
With the aid of a supply and demand diagram, briefly explain the change (if any) in the market for American skilled workers given the change that is reported above. Make sure to discuss the effect on the number of people employed.
Using the data from HW 3 Data.xlsx, forecast 2016 sales for Dynamo Publishing (the first worksheet tab, DYNAMO PUBLISHING) with a smoothing parameter of: (a) α=0.5 (b) α=0.75 (c) Which of these two α’s perform better for minimizing total error? Smoot..
Suppose the demand for Brand A Ice Cream is characterized by the following point elasticities: own price elasticity = -0.8 cross-price elasticity with Brand B Ice Cream = +2 income elasticity = +3 Based on the given elasticities, What happens to the ..
A monopolist has a constant marginal cost of production of $5 per unit. It also faces two different markets that cannot communicate with each other, Qa=55 - P1 and Q2=70 - 2P2. If the monopolist can maintain the two markets’ total separation, how muc..
A savings bank offers $1000 certificates deposit. Each certificate can be redeemed for $2000 after 8.5 years. What are (a) the nominal, (b) the effective, annual interest rate, if the interest is compounded continuously?
Suppose a firm uses both labor L and capital K as inputs to production. Its production function is of the Cobb-Douglas form, i.e. F (K,L) = K^1/3 L^2/ 3. Express the firm’s real revenues, real costs and real profits in terms of the variables defined ..
q1. the average height of 27 unfertilized plants is 13 cm s 3.9.and you wish to test whether this differs
The game known as the Battle of the Bismarck Sea (named for that part of the south-western Pacific Ocean separating the Bismarck Archipelago from Papua-New Guinea) summarizes a well-known game actually played in a naval engagement between the United ..
Illustrate graphically the effects of both policies on the market for cigarettes. In your discussion answer the following: Are these two programs at odds with the goal of reducing cigarette consumption?
Assume that the US dollar has been appreciating against other currencies. Please explain how this higher value of US dollar would affect the following firms (in a positive or negative way).
Assume that in a small open economy with full employment, consumption depends only on disposable income. National saving is 300, investment is given by I = 400 - 20r, where r is the real interest rate in percent, and the world interest rate is 10 per..
Would the DWL of a tax be larger if the tax (assuming the same size of tax per unit of product) were levied on groceries or meals at fancy restaurants? ? In order to minimize the DWL of a tax, should the government levy tax on groceries or meals at f..
One explanation for China's rapid economic growth during the past several decades is its expansion of policies that encourage "technology transfer." Analyze this change using a Solow diagram. What happens to the economy over time? Draw a graph showin..
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