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In episode 519 of the Emmy Award winning television series, The West Wing, Josh Lyman, Deputy White House Chief of Staff to Democratic President Jed Bartlet, argues in favor of free trade agreements with India because "Free trade produces better, higher paying jobs (higher real wages). It's... that simple."
a) Use a model that you learned in class (Ricardo, HO, specific factors) to argue how can the statement be correct. Be clear about the assumptions needed on the model to deliver such a result.
b) Use a model that you learned in class (Ricardo, HO, specific factors) to argue how can the statement be incorrect. Be clear about the assumptions needed on the model to deliver such a result.
In 2008, the Board of Directors and shareholders of Anheuser Busch agreed to be acquired by a Belgian Brewer (InBev). Prior to the merger, InBev made many pledges to AB regarding how the company would operate after the merger, how its employees would..
Assuming all changes in quantity were due to the change in price, what is the price elasticity of demand for the Dulles Airport Greenway?
In December of 2005, the Wall Street Journal reported that Clark Foam, a major supplier of polyurethane cores (blanks) for hand-shaped surfboards.
The United States has accrued a public debt of over $19 trillion over the course of its history, which is equivalent to slightly more than the annual nominal GDP of the nation. Come up with and explain at least two ideas in terms of how to reduce the..
What is the main idea of the O-ring model, which involves different types of skills?
a. What is the level of fixed costs for this monopoly? b. What is the profit maximizing quantity level for this firm? Show your steps in arriving at the answer.
Consider the monetary intertemporal model with investment. Analyze a temporary, positive TFP (z) shock and a permanent increase in Ms, respectively. How do the implications di?er? What assumptions on the economic behavior of households and ?rms do th..
A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P=50 - Q. Suppose fixed costs rise to $400. What happens in the market?
A poll was taken this year asking college students if they considered themselves overweight. A similar poll was taken five years ago.
This is the market data for Vespa motorbikes in Houston. Demand: P = 400 - 0.50Q Supply: P = 260 + 0.20Q where P = Price and Q = Quantity. Calculate the equilibrium price and quantity. Calculate the consumer surplus in this market. Calculate the prod..
In 1988 the US gross domestic product (GDP) increased to $4.90 trillion at year end, from the 1987 year end level of 4.54 trillion in actual escalated dollar values. In the same year, the consumer price index rose approximately 4%. What was the const..
There are five major trends driving Corporate Social Responsibility. (Transparency, Knowledge, Sustainability, Globalization, The Failure of the public sector)
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