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Using a simple example, explain the Comparative Advantage Theory and how Countries can benefit from international trade. What type of economic policy does this theory call for?
Look at those whose advertising went down by double digits from the prior year. Speculate about what might have caused those advertisers' expenditures to decline.
Answer these three questions about early-stage corporate finance: Why do very small companies tend to raise money from private investors instead of through an IPO? Calculate the equity each of these people has in his or her home: Which has a higher a..
You make monthly deposits of $300 into an account that pays 3% per year. How much larger would the balance be after 4 years if interest is compounded continuously compared to monthly? Express your answer in $ to the nearest $0.10.
Use the Taylor rule to calculate the target for the federal funds rate for October 2012, using the following information: equilibrium real federal funds rate of 2%, target inflation rate of 2%, current inflation rate of 1.2%, and an output gap of 5.9..
An alternative way for the government to encourage home ownership would be to offer a tax credit instead of a tax deduction. Explain how does this alter its budget if k=0.25.
In doing this you need to look at how the determinants of aggregate supply - such as levels of technology and productivity - can be raised.
If the price for input factor is PX = $60,000, the marginal product is MPX = 300 and the marginal revenue is MRQ = $250, the marginal revenue product of X equal
Country X has an $8000 billion GDP and a population of 200 million. Country Y has a $6000 billion GDP and a population of 150 million. Which of the following is true? If the GDP deflator is now 125, we may conclude that since the base year prices hav..
If a 10 percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is said to exhibit decreasing returns to scale. If it causes output to increase by more than 10 percent, the production func..
Felix Jones, a recent engineering graduate, expects a starting salary of $65,000 per year. His future employer has averaged 5% per year in salary increases for the last several years. If inflation is estimated to be 4% per year for the next 3 years, ..
Bivens(2005)’s paper argues that studies that highlight the positive impacts of offshoring on the U.S economy mostly ignore the costs associated with the following: Explain each of these losses and how offshoring creates/generates these costs.
Suppose that Country B has the same amount of net private saving in Year 1 and in Year 2. However, the government of Country B has a budget surplus of $200 billion in Year 1 and a budget surplus of $100 billion in Year 2. Other things equal, this ten..
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