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Problem
1. It has been said that U.S. consumers/taxpayers ended up paying "twice" for a U.S. wheat export subsidy program. Is there any basis for such a claim?
2. Suppose that a (small) country is an importer of good X, for which the current world price is $8. At that price with free trade, home producers are supplying 500 units of good X and the country is importing 300 units. It is now rumored that a 10 percent import duty will be imposed on good X. Estimate the welfare impacts that would occur with such a tariff, given that the elasticity of demand by consumers for good X is 2 2.0 and that the elasticity of home supply is 1.6.
Obtain the IS and LM for this economy - Find out the equilibrium income rate and interest rate in this economy
Karen earns $75,000 in the current period and will earn $75,000 in the future. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r = 0, draw her inter-temporal budget constraint.
Suppose that no taxes are imposed, Estimate the equilibrium value of GDP if government expenditures are $50 billion and inteneded investment is $50 billion?
he country's policymakers decide to use Keynesian demand management policy to try to get to full employment. How much should government spending change?
The Law of Supply movement along the curve due to the price effect occurs because people can buy only so much of a product.
1. Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, or changes in the number of consumers in the mark..
There is a pure exchange economy with two identical customer , A and B. C ustomer A has 8 units of good 1 and 4 units of good 2. C ustomer B has 4 units of good 1 and 8 units of good 2.
Suppose that work hours in New Zombie are 300 in year 1 and productivity is $14 per hour worked. What is New Zombie's real GDP? _____$ If work hours increase to 320 in year 2 and productivity rises to $16 per hour, what is New Zombie's rate of econ..
What ideas and plans do you have about approaching each of the 3 main phases and related tasks? What are the pros and cons of PBL?
Assume Firm Y's production function is given by the following Cobb Douglas equation: Q = 0.5 x L0.6 x K0.5 where L denotes labor and K denotes capital. a. Does the production function exhibit increasing, decreasing or constant returns to scale.
(i) the total estimated monthly mileage for the 24 lorries (ii) the average (mean) estimated monthly mileage per lorry
The US is the world leader in weather reporting, providing benefit to the US and many other countries as well. There is huge external benefit to providing this to the world at large. However, there is a huge cost as well and most of it is borne ..
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