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Why has comparative advantage become the fundamental and accepted theory of trade?
FACTS Lydia Gonzalez, 5 8 (plaintiff), worked as a reporter at El Nuevo Dia, a Puerto Rico newspaper. Her supervisor, Maria Luisa Ferre, often said that Ms. Gonzalez’s demeanor and couture were “[o]ut of style” and “colorless,” and her coiffure was “..
Illustrate what is the firm's profit maximizing output level. Is the industry in long-run equilibrium.
Steve was spending all of his income by purchasing 12 units of gasoline and 36 unit of potato chips. The price of gasoline increased from $32 to $94. The price of potato chips remained the same at $23. How much would Steve's income have to rise so th..
Suppose that on Euro can be exchanged for 1.3 U.S. dollars and that one U.S. dollar can be exchanged for 80 Japanese yen. If these currencies can be traded freely with low transaction costs, what exchange rate would you expect between the Euro and Ja..
The International Monetary Fund (IMF) lists its purposes as follows: (1) to promote international monetary cooperation via consultation and collaboration
A study the seasonal demand and supply, explain what happened to cause the oil prices to fall to consumer demand in early 2015. Draw demand and supply curves to explain what happened.
Assume an open, mixed economy. Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in indiv..
The market for physiotherapists is competitive. Chiropractic services and physiotherapy services are substitutes. Currently the price per visit is $40 and the quantity utilized is 30,000 visits annually. Physiotherapists face stiff competition from c..
An increase in the interest rate is expected to cause the optimal level of human capital investment for an individual to:
The Index of Small Business Optimism declined 3 points in June 2012, falling to 91.4 and losing gains achieved earlier in the year, according to the NFIB Research Foundation report. Labor market indicators and spending plans for inventories and capit..
For the following questions, identify whether it is a change in supply or a change in quantity supplied. Indicate the direction of the change (increase or decrease).
King Lear was worried about how his children would treat him in his old age. Much to his regret, he discovered that children do not always deliver what they promise. In addition to love and respect, children are also motivated by the possibility of a..
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