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A. Explain, using the gravity model of trade, why the volume of trade between the U.S and the European Union may be higher than the volume of trade between the U.S. and Canada, even though the U.S. and Canada share a border.
B. According to the Heckscher-Ohlin model, free trade would lead to an equalization of wage rate internationally. Explain why we do not observe that result in the real world, where, for instance, there is great discrepancy in wage rate between developed and developing countries.
C. Why do countries persist in using protectionism even though most economists believe that tariffs and quotas yield welfare losses to consumers?
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Consider an oligopoly industry whose firms have identical demand and cost conditions. If the firms decide to collude, then they will want to collectively produce the amount of output that would be produced by:
How does world trade affect the production of complex products like smartphones?
A farmer must decide what combination of seed, water, fertilizer, and pest control will be most profitable for the coming year.
Casa della Maison Restaurant is planning a sweatshirt advertising promotion. Limited sales data from a few sweatshirt sales of a prototype design indicate that What price would it have to charge to sell 1,500 sweatshirts. Calculate the price elastici..
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Write an abstract and introduction and literature on the influence of technology on labor productivity?
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Consider an economy in which its residents spend 90% of each additional dollar they earn and the government increases its spending by $400. Calculate the total effect on output (or aggregate demand) The government reduces its spending by $4000 in an ..
A factory building is located in an area subject to occasional flooding by a nearby river. You have been brought in as a consultant to determine whether flood-proofing of the building is economically justified. The alternatives are as follows: Do not..
Suppose you amke an annual contribution of $3000 to your savings account at the end of each month for 10 years. If the account earns 7% interest annually, how much can be withdrawn at the end of 10 years?
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