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Problem
1. How can multinational companies benefit national economies?
2. What is the main determinant of the value of an exchange rate?
3. What are ‘managed' exchange rates?
Now suppose the price of apples is back at $2, but a hurricane destroys half the orchards. Calculate how the hurricane affects the income of each worker and of each remaining orchard owner. What happens to the income of Ectenia as a whole
jen likes only chocolate and economics textbooks. her demand functions for chocolate and textbooks are given byqc m pc
Clearly identify the areas representing consumer and producer surpluses?
Compute the total fixed costs, total variable costs, average fixed costs.
Suppose that the price of gasoline rises, and at the same time, the price of steel(an input to automiblile production) falls. Show this on your graph. If you have no other information, what can you say about the change in equilbrum price and quani..
When looking at the US economy, you will find that changes in the income levels are very challenging to estimate. How do you think the US is going to be able to deal with these changes in income to make them more equal?
Determine absolute advantage and comparative advantage and explain why will resources specialize according to their comparative advantages?
A competitive firm in a perfectly competitive market produces and sells hats. Last year, it produced and sold 1,000 hats at the equilibrium price of $10. It incurred average variable costs of $6 and earned total economic profits of $1,000. What..
Suppose that over a range of prices, the price elasticity of demand varies from 15.0 to 2.5. Over another range of prices, the price elasticity of demand varies from 1.5 to 0.75. What can you say about total revenue and the total revenue curve
Explain why do economists attempting to forecast short run future changes in real GDP and employment look closely at data on business inventories and unfilled orders.
An individual's decision to purchase and drive a car does not take into account the effects on third parties. True or fALSE? Support with reason.
What did the central banks do to stabilize the financial systems in 2007-2009 and Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.
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