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1. (Reasons for International Specialization)What determines which goods a country should produce and export?
2. (Tariffs) High tariffs usually lead to black markets and smuggling. How is government revenue reduced by such activity? Relate your answer to the graph in Exhibit 5 in this chapter. Does smuggling have any social benefits?
In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is 1.5 and the advertising elasticity of demand is +0.6,
What are the characteristics of the epidemiological transition
What are some explanations for the global deceleration of economic growth since the early 1970s, and what are the prospects for reversing this trend?
If Sandwiches To Go Inc. buys all the sandwich producers and cuts production to 100 sandwiches an hour, what is the deadweight loss that is created?e. If in part d, Sandwiches To Go Inc. rations sandwiches to two per person, is this distribution of..
Valles Global Industries (VGI) is considering selling a product to SohnCo. The contract sells parts for revenue of $32 million a year for 15 years. Their initial investment is $150 million and the equipment has no salvage at 15 years. They esti..
b.Determine the cross-price elasticity of demand between good X and good Y, and state whether these two goods are substitutes or complements. c.Determine the outcome elasticity of demand, and state whether good X is a normal or inferior good.
Ten years ago a machine cost $800,000. Now, the same machine costs $1,200,000. Calculate the average rate of inflation per year.2) An investor bought a tax-free provincial bond, at a cost of $1000 which will pay $50 interest each year for 20 years...
Do these utility functions exhibit diminishing marginal utility of X Explain. For each utility function, calculate the marginal rate of substitution of good X for good Y (i.e. -marginal value of X, measured in units of good Y) associated with the bun..
Does anyone know what I need to do when he says "cumulative over 2years" and when he says to calculate the inflation from Oct 08 withthe corresponding month of base period
The government is considering two alternative types of taxes. The first is a tax on interest income, the second is a tax on labour income. Both are to be imposed at rate t (i.e., t=.20, or 20%). Your job is to help the government understand the im..
Return again to the cartel in Problems 4 and 5. Now suppose that the market game repeated indefinitely. What is the discount factor (sigma) is necessary now in order to maintain the collusive agreement in an indenitely repeated setting
Assume forex market equilibrium is given by i = ([1/E] -1) + 0.10, where the two foreign return terms on the right are expected depreciation and the foreign interest rate. What is the foreign interest rate? What is the expected future exchange rat..
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