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The three studies that Bivens (2005) reviewed indicate that offshoring benefits the US economy through both employment creation and price reduction. Bivens argues that the results from these three studies are not reliable at best and, in some cases, outright incorrect. Explain how Bivens arrived at this conclusion. Which side (Bivens’s conclusions or the results of the three studies) would you support? Explain why
Imagine that you and a group of your fellow classmates own a company that manufactures cheap sunglasses. To lower production costs, you want to move your factory from your developed country to a more cost-effective nation. At an appropriate level, th..
When comparing the distribution of wealth to the distribution of income, it can be noted that
If there are no fixed costs of production, in the long run, the perfectly-competitive firm will produce
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
If the central bank does not intervene in the foreign exchange markets (the RA balance is zero), briefly explain why CA + KA = FA.
Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 92 - 2PX. Suppose the government imposes a price floor of $40, and agrees to purchase any and all units consumers do not buy at the floor price of $40 per unit. Determine..
New manufacturing technologies are often viewed as labor saving in nature. Using a production possibilities frontier with manufactured capital goods on one axis and labor-intensive goods on the other axis.
How a tariff imposed by a small country on its imported good causes a loss of real income, in the sense of lower utility, or "well -being" on the part of consumers?
q1. suppose that people consume only three goods as shown in the table tennis balls golf balls bottle of gatorade2009
Which of the following is not an assumption of the theory of consumer behavior described in this chapter? In deciding what to buy, the consumer will choose the good with the:
With the current level of capital is the marginal product for capital 0,12. The rate of depreciation is 6%, the nominal interest rate of a company loan is 8% and the expected rate of inflation is 3%. Should the company increase its level of capital? ..
Suppose that in year 2008, the money supply is $400 billion, nominal GDP is 9 trillion, and real GDP is $4 trillion. Illustrate what is the price level. What is the velocity of money.
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