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Which of the following statements is an example of a practical constraint on trade? A.Production possibilities curves exhibit increasing returns. B.Transportation and communication costs occur with every trade. C.Workers in every industry in the trading countries will benefit from trade. D.Small countries may not have any absolute advantages in producing goods.
Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Make sure you include both the positive and negative effects of your actions, and..
In a particular economy the real money demand function is, M^d/P = 3000 + .1Y - 10,000i. What is the real interest rate,r, that clears the asset market when Y =8000? when Y = 9000? Graph the LM Curve. Repeat part a for M = 6600. How does the LM curve..
Suppose there are two goods being produced in the economy: robots and wheat. Robots are a capital intensive good and wheat is a labor intensive good. Suppose that there are two countries: France and Brazil. France is capital abundant and Brazil is la..
Treat the country listed as the home country, and treat the United States as the foreign country. Suppose the cost of the market basket in the United States is P(US)=$190. Check to see whether PPP holds for each of the countries listed, and determine..
In what way (or ways) is the current Knowledge Revolution a child of the Industrial Revolution? Is this a new revolution or simply an extension of the 18th-century revolution? Given the history, is it perhaps more appropriate to call the current revo..
Suppose the government applies a specific tax to a good where the demand? elasticity,epsilon ε?, is negative −1.1?, and the supply? elasticity, η?, is l.5 If a specific? tax, tauτ?,of ?$1.50 were placed on the? good, what is the price increase that c..
A student is shown four envelopes. Envelope A contains $2,000; envelopes B, C and D contain uncertain amounts of money but with the following probabilities: Envelope B -- $5,000 with a 10 percent probability, $2,000 with an 88 percent probability, an..
What are the main causes of international financial crises? How can they be resolved? How can they be prevented?
Assume that Dr. Slight has $300 to spend on goods X and Y. Good X costs $5 per unit and Good Y costs $3 per unit. Dr. Slight combines X and Y using a very strict ratio to derive utility. He can only increase his level of wellbeing by receiving more o..
You receive payments at the end of each Quarter starting at the end of Quarter 1 and lasting 5 years (so the last payment you receive is at the end of Quarter 20). These payments are an equal series of payments of $500 for all 20 payment periods. The..
Who were the major lenders of subprime lending? How exactly did they effect our economy? How were they able to grant these loans when they knew borrowers wouldn't be able to pay them back?
Discuss how the Dual-Concern Model and Big Five Personality Dimensions facilitate recognizing bargaining styles and how such styles impact behaviors and strategies in a negotiation.
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