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Discuss the international parity conditions. Explain the essence of purchasing parity power. What would happen to purchasing parity power exchange rate if the law of one price were true? What is the difference between the purchasing parity power and the relative purchasing power of parity? Explain your point of view carefully.
Consider the following: wagner tool produces output according to q = 2k1/2 L1/2, where K is the amt of capital used and L is the amt of labor employed. wagner is constrained in the short run to use 16 units of capital. labor cost $8 per unit, capital..
Suppose two countries, A and B, with the same production function Y = K? L1?? . The value of is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Show that with price-taking firms the share of labor must be 1? Compare both e..
How much would government get if it introduced a 15 percent income tax? Revenue $ d) How much would government get if it introduced a 15 percent sales tax on final output?
Van Doren Housing expects to have sales this year of $18 million under its current credit policy. The present terms are net 30; the days sales outstanding (DSO) is 48 days; and the bad debt loss percentage is 4 percent. What would be the incremental ..
You are required to analyse the strategy of a firm of your choice. You need to pick a firm and identify the strategy that the firm uses to compete with its rivals. It is important that you conduct an industrial or environmental analysis, before you u..
Should the government increase the minimum wage? What should be the GUIDELINES for an increase? What are some of the disadvantages of an increase?
Assume an open, mixed economy (C+I+G+X=real GDP) and an MPS of .2 What is the multiplier? if the government spending (G) increases by $50B, how much will the real GDP increase? If taxes also increase by $50B, consumption (C) will fall by how much?
State your opinion whether your are Federalist or Anit-federalist whether you agree or disagree with a persuasive opposing stance of your opinion for a newspaper or a political speech to the union address?
The following equations represent the inverse supply and demand functions in the market for Good A:. QD and QS are the quantities demanded and supplied, respectively. Suppose the government imposes a tax of $6 per unit of Good A. What is the incidenc..
q1. thomas schelling and expert on nuclear strategy and arms control observed in his book the strategy of conflict
You own a retail establishment run by a store manager who receives a flat salary of $80,000. If you set up another store as a franchise with incentive compensation to the franchisee, what would be a reasonable total compensation range that the franch..
She gets pleasure not only from her spending money but also from her leisure hours. Draw her budget constraint in leisure-expenditure space.
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