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Competition Among Traders: Trade Restrictions and Recession
1. Will a country do better importing or exporting a good for which it has a comparative advantage? Why?
2. Why does competition among traders affect how much of the gains to trade are given to the countries involved in the trade?
3. If you were economic adviser to a country that was following your advice about trade restrictions and that country fell into a recession, would you change your advice? Why, or why not?
Describe how a change in investment can have big impact on GDP causing a nationwide slump. Recall that investment is "small" relative to the entire economy.
Assume Venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce, consume, and import.
Assuming that you get a summer intern job and a recession began while you are there. Write a memo to your boss, who is a member of Congress.
Give the utility function U(x, y) = (x-4) 1/2 (y-2)- 1/2 , what is the minimum income needed to ensure positive utility?
Dilomatic tensions over the war with Iraq also patriotic fervor led the state legislature in South Carolina to initiate a resolution boycotting French products.
Mr. Shanku has borrowed dollars in the US but is now concerned regarding its currency risk. What alternatives does he have to limit his risk.
Illustrate what are the pros and cons of companies competing in the global environment and how this has affected the U.S. economy and the global economy.
Show the effect that reducing protection on imports will have on factor prices. Show the effect of reducing protection will have on factor prices.
Explain why should you, as a future employe, be concerned about the downward trend in labor productivity increases that have been observed since the early 1970s.
Campus Print Shop is assume of purchasing a new, modern copier that automatically collates pages. The machine would cost $22,000 cash.
A rural utility organization gives standby power to pumping stations using diesel-powered generators.
The Mor Tex Company assembles Garments by hand even though a textile machine exists that can assemble garments faster than a human.
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