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Discussion
Economist Steven Landsburg (New York Times, January 16, 2008 p. A23) made the point that "bullying and protectionism have a lot in common. They both use force (either directly or through the power of law) to enrich someone else at your involuntary expense. If you're forced to pay $20 an hour to an American for goods you could have bought from a Mexican for $5 an hour, you're being extorted." He also argued, "Surely we have fellow citizens who are hurt by those [trade] agreements...What do we owe those fellow citizens?" The United States has programs to educate and retrain workers displaced by free trade agreements. Do we even owe them that? Why or why not?
A proposal has been advanced to limit advertising of pharmaceutical prices to prevent unfair pricing by national chains. You estimate that limits on price advertising will change the price elasticity of demand from -5.63 to -4.43. What economic effec..
An individual donates artwork to San Francisco General Hospital. This was the only charitable contribution the taxpayer makes during the year. The artwork was purchased several years ago for $50,000; it is worth $140,000 at the time of the donation. ..
Using the specific-factors model, elucidate why you might expect to see certain capital owners and labor groups arguing against expanding trade in a capital-abundant country.
How it may be possible for increases in the minimum wage to have little impact on employment levels. Please explain using the following concepts: long-run versus short-run; b
assuming the price of labor is 6 per unit and the price of capital is 12 per unit compute the total variable costs the
Explain why net exports and net capital outflow are always equal. Explain why higher real interest rates lead to lower net capital outflow.
Is democratic government and equal rights are necessarily related, in the way Lincoln's opening quote implies."As I would not be a slave, so I would not be a master. This expresses my idea of democracy. Whatever differs from this, to the extent of th..
Why have poorer countries become offshore manufacturing centers? What impact does this manufacturing have on local water supplies? What implications does this have, especially in locations where clean water is already in short supply? Is water a comm..
Five of ten people earn $0, four earn $100, and one loses $100. What is the expected pay off and variance of the pay off? There is a 50 percent chance of making $0, a 40 percent chance of making $100, and a 10 percent chance of losing $100. Calculate..
From observations over many years, the company has concluded the fill amounts in their 2 litre bottles is normally distributed with a mean of 2.01 litres and a standard deviation of 0.11 litres. What fill amount (in litres) will see 97% of all bot..
Which of the following deals with asymmetry of information?
Cindy gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 110 hours. Her utility function is U(C,L)=C*L. This functional form implies that Cindy's marginal rate of substitution is C/L. Cindy receives ..
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