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a) As a result of the North American Free Trade Agreement (NAFTA), the US and Canada are shifting toward free trade with Mexico. According to the Stopler-Samuelson theorem, how will this shift affect the real wage of unskilled labor in Mexico? In the US or Canada? How will it affect the real wage of skilled labor in Mexico? In the US or Canada? (Brief answers needed).
b) One of your relatives suggests to you that our country should stop trading with other countries because imports take away jobs and lower our national well-being. How would you try to convince him that this is probably not the right way to look at international trade and its effects on the country?
What performance % would you use to trigger executive bonuses for that year.
Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, illustrate what was the real interest rate you paid.
Elucidate how each of the following people would talk about scarcity and trade-offs. The President of the United States and the leader of a developing nation.
The market for autographs including letters o other documents signed by famous people is subject to frequent large price changes as are markets for most collectables.
Explain how might knowledge of organizational behavior help the company's frontline store supervisors manage their employees.
Illustrate what can you say about the change in equilibrium price and quantity.
Will the brothers gain if they specialize. Illustrate your answer with an example.
Illustrate what do you think would occur when there is little or no competition is a marketplace
Calculate the constant debt-GDP ratio that the country can achieve if the country runs a primary budget deficit of 3%. Is this debt-GDP ratio stable.
Illustrate what mistakes did policymakers make that have kept developing nations from growing more quickly.
Government purchases rise to 1440. How does this increase change the equation describing desired national saving? Show the change graphically. Illustrate what happens to the market-clearing real interest rate.
What output market with the appropriate starting position and show what effect the contractionary policy would have in the output market.
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