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Question: Comparative Advantage Do you know of a product for which your state has a comparative advantage? Explain how this might affect trade with another state.
Illustrate what does your anticipated adjustment process imply about the CR for the industry. Industry B has 20 Industries also a Concentration Ratio (CR) of 80%.
Suppose for the sake of this problem that the U.S. can be modeled as a small open economy.
Describe the effects of the sugar quota. In 2005, imports were limited to 5.3 billion pounds, which pushed the domestic price to 27 cents per pound. Suppose imports were expanded to 10 billion pounds. What would be the new U.S. domestic price? How mu..
The data in the table above give two points on the demand curve for pizza. Using the midpoint method when the price of a pizza falls from $10 to $9, what is the price elasticity of demand? 0.5, 0.6, 0.9. 2.1. 8.6 The values on the table: Price for pi..
In general , how do changes in the unemployment rate vary with changes in real GDP? After several quarters of a severe recession, explain why we might observe a decrease in the official unemployment rate. Explain why we could see an increase in t..
Would your answer change depending on whether a lender supplies a fixed-interest-rate loan or a variable-interest-rate loan?
In 1999, there was broad concern about the Y2K computer problem. Banks, and the Fed, predicted that many people would want to hold additional cash in case software glitches blocked access to their bank accounts on January 1, 2000. What happens to the..
Suppose that excess reserves in the Stranda National Bank are $15,000 and the reserve requirement is 4 percent. Illustrate about the maximum amount that the money supply can be increased is.
Four political candidates are deciding whether or not to enter a race for an elected office where the decision depends on who else is throwing his or her hat into the ring. Candidate D prefers not to enter if either candidate B and/or C are expected ..
Suppose an environmental regulation costs $400,000 today (one time payment) and would save $1 million worth of health costs 20 years from now. a) Would you recommend the program at a discount rate of 0%? 2%? 10%? b) Which discount rate would industry..
In a two firm market, let the total cost of producing a product be 2Qi, the inverse market demand be given by the function P = 20 - Q and the market quantity be equal to Q = Q1+Q2. Assume firms compete in quantities, what is the quantity for firm 1 t..
Monetary Theory and Policy. Use the equation of exchange to answer the following questions and assume that the velocity of money is fixed at V = 7.5 throughout this problem. Suppose that the economy is in long-run equilibrium. If the money supply is ..
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