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Comparative advantage : Solution set
Provide one example of a good the United States would be considered to have a comparative advantage in producing. Why do you think the U.S. has this comparative advantage?
Explain how does each of the following affect the aggregate demand curve?
Mention four key points from the reading assignments that were emphasized in the simulation. Find out how price elasticity of demand affects the decision making of the consumer and of the organization.
Rachel utility function is given by U= I 1/2 , where I represents annual income in thousands of dollars. Assume Rachel is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Illustrate what economic policy should be adopted by regions with persistent economic problems.
As a monopoly is the only source of supply, consumers are entirely at its mercy. There is no limit to the price the monopoly can chargeâ. Evaluate this statement.
Describe the economic situations when your position can be successfully implemented and when it may be doomed to failure.
The table below is a production possibility table for the fictional country of Myopia. Use it to construct the corresponding production possibility curve.
Would you rather earn a 4 % nomical or 4% real interest rate? Illustrate by describing the difference between nominal and real variables.
In national income accounting identity showing the equality between national saving and investment, what is the representation of private saving and what is the representation of public saving?
Could a labor union or a minimum salary law efficiently help to raise wages.
Explain how many baseball jerseys will you sell in Los Angeles and how many in Brooklyn. What will be the price of your jersey in Los Angeles and what will be the price in Brooklyn.
According to the Heckscher-Ohlin theorem, is Russia capital abundant or labor abundant? Briefly explain. What is the impact of opening trade on the real wage in Russia? Briefly explain.
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