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1. Why is the institution of private property in capitalism a source of economic growth?
2. Give three reasons why economist advocate for "free trade"?
3. Why do governments prefer tariffs while foreign producers prefer quotas?
4. Why do international trade associations such IMF, World Bank, WTO exist? What effect do they have on international trade?
The government decreases current taxes, while holding government spending in the present and the future constant.
Suppose there are 100 identical firms in the perfectly competitive cement industry. Suppose the cement industry is a Constant-Cost industry. Find the short-run supply (QS) of the industry. Compute the consumer surplus (CS) and producer surplus (PS). ..
Have a lower value of a flight than business travellers. What pricing strategy options are available to the airline? In addition, what relationship between the two markets limits the airlines ability to raise price.
To many upscale homeowners, no other flooring offers the warmth, beauty, and value of wood. New technology in stains and finishes call for regular cleaning that takes little more than sweeping and/or vacuuming, with occasional use of a professional w..
Illustrate what is the efficient price of water. Illustrate what are the quantities of water allocated to agricultural also industrial use.
Which of the following always decreases as output increases? The Southern Tree Trimming Corporation reported an accounting profit of $35,000 and a normal rate of return of 15 percent on capital and enterprise of $30,000. The opportunity cost of labor..
Suppose that you win the state lottery. You have two options to receive your winnings. Plan 1 pays you a lump-sum amount of $300,000. Plan 2 pays you $20,000 today, $100,000 after one year, and $200,000 after two years. Assume that the current intere..
A Spanish can either produce 3 liters of win or 1 kilos of cheese. A Portuguese worker can either produce 4 litres of win or 12 kilos of cheese 1) Which countries have absolute advantages in which goods? Explain 2) Which countries have comparative ad..
q1. consider a market where supply and demand are given by qxs -14 px and qxd 82 - 2px. suppose the government
Pete borrows $10,000 to purchase a used car, He must repay the loan in 48 equal end –of-period monthly payments. Interest is calculated at 1.25% per month.
When the market interest rate changes, which of the following change for a corporate bond held by an investor?
Elucidate what happen in the short run to market supply and demand curves, market price, the firm's output, the firm's profit.
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