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Write the factor market equilibrium conditions for the Heckscher-Ohlin model. Use them to explain what happens to both real product wages when the price of the labor intensive good rises.
Suppose that a tax of €10 is levied on every unit of a good. Using a typical supply and demand diagram, please show the relationship between consumer surplus, producer surplus, tax revenue and deadweight loss.
According to the classical view, which of the following statements is true? The government's budget deficit is equal to. Which of the following is a leakage in the macro economy?
Question 1: What is the difference(s), if any, between the unemployment rate and the natural rate of unemployment? Discuss.
Control of "market interest rate"? What is market interest rate? And how does loan able funds relate to it?
In the 1980s, there were far fewer apple varieties than there are available today. In the early 1990s, researchers at the University of Minnesota patented the seeds for the now-popular Honeycrisp apple variety they bred. As that patent nears expirati..
We saw in class that since we are only interested in the ordering of bundles, a positive monotonic transformation (one that does not change the order) of a utility function also represents the same preferences. Mathematically, a positive monotonic tr..
What are the inputs required to be a dairy farmer? What are the inputs required to be a milk producer?
Using the Lagrangean Multiplier method, determine how should the hardwood be allocated between the two lines of product so that total profit can be maximized. Also calculate the optimal amounts of Y and Z and total profit from each product line.
The weight of anthropological, psychological, and historic evidence suggests that moral beliefs are relative to groups or individuals and there are no universal norms, let alone universally valid ones. Benedict argues that the term “morality” means “..
You are a policy advisor responsible for air pollution in a region where there are only two chemical plants run by firm A and firm B. Firm A’s pollution abatement costs are 2x^3 , where x is a unit of pollution. Firm B is newer and has pollution abat..
Using your own words, in no more than 10 short clear sentences; describe each of the following financial instruments, including the kind of claim (debt or equity), maturity (money market or capital market), risk, and liquidity characteristics, and an..
"Importing a good is bad for everyone in the importing country." Is this statement true or false? Explain
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