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Many rich developed countries (like countries of the EU or the US have suffered from inexpensive imports coming from Asia and other emerging countries. As a result, many industries and parts of sectors of our economies have disappeard since the onset of globalisation. Selected politicians in the rich countries are calling for tough measures to support local industries and protect employment in the West. Provide an educated explanation and opinion on these issues. What could or should be done in your view?
The president of the World Bank has asked you to calculate the average per capita GDP growth in Bulgaria from 1970 to 2010. In 1970, per capita GDP was $3,600 and in 2010 it was $13,500. Your answer would be:
Consider now an economy where you need to search for a job. Let b be the fraction of people that do not have a job and are searching for one. Write the equations describing the dynamics of those employed (E) and those who are not employed (NE). Compu..
In the eclectic economy of Ecentricitia, their currency is the Ecentric dollar (ED). 0.05 of each ED earned by Ecentricites goes to taxes. 0.09 of each ED earned is spent on imports. After taxes, they save 0.15 of each ED. What is the Government spen..
In each of the following situations, what type of unemployment is being described? Explain.
At the profit-maximizing level of output, a purely competitive firm will: produce a quantity of output at which marginal cost is greater than price. produce the quantity of output at which marginal cost is minimized.
q1. a u.s. resident can earn 6 percent interest on a one-year bank deposit of 100000 at home. alternatively she can
A new piece of machinery, when placed in service is estimated to cost $225,000. It is expected to produce revenue of $75,000 and operating and maintenance expenses are expected to be $9,000 per year. The useful life of the equipment is 5 years and it..
Mr. Roe gave up a job paying $18,000 and investments paying $6000 a year to pen this business. What is his accounting profit and what is his economic profit?
GM announced that it will close its Oshawa truck plant in 2009 and a Windsor transmission plant in 2010. Ford also plans a 10 percent cut in white-collar, salaried positions. In total, over 4000 direct jobs will be lost. What is the relationship betw..
Why is an individual bank more limited in its ability to create money than the banking system as a whole? What are the limitations on the maximum expansion of money supply? What is the effect on the deposit expansion process if banks choose to hold m..
Gomez runs a small pottery firm. He hires one helper at $15,500 per year, pays annual rent of $5,500 for his shop, and spends $21,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) t..
The result was an increase from $8 to $32 per unit per year. What were the effects of these changes on Belk's economic lot size and relevant costs?
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