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How do tariffs and quotas differ? Can you think of any reason why foreign producers might prefer a quota rather than a tariff? Explain your answer.
A drug manufacturer sells a major drug in Europe and in the United States. The demand curve for the drug in Europe is P E = 10 - Q E, where P E is the price (in dollars per pound) and Q E is the quantity (in millions of pounds) sold in Europe.
Derive a long-run model of exchange rate determination, if exchange rates are determined by Absolute PPP, and goods prices exibly adjust to bring about equilibrium in domestic money and nancial markets.
Explain why would we expect the difference in the one year interest rate on the dollar vs one year interest rate on, the Euro or any other freely convertible currency,
ssume under a system of flexible exchange rates a black and white TV rates $150 in the United State and 18,600 yen in Japan. Other things being equal,
Two horizontally differentiated producers of diesel railroad engines- one located in the United States and the other in Europe - compete in the European market as Bertrand price competitors. The U.S. manufacturer lobbies the U.S. government to giv..
Applying the basic circular flow model, explain why the value of businesses' output of goods and services equals the income of households.
Refer to the Real Estate data, which reports information on homes sold in the Goodyear, Arizona, and area during the last year. Prepare a report on the selling prices of the homes. a.) Around what values do the data tend to cluster
Since Fall of 2011, the price of oil has shown a sharp increase again as continuation steady rise in oil price attributed to the Arab Spring (the political uprising in the Middle Eastern and North African countries) started in the beginning of 201..
compute the equilibrium price and quantity when the per-ton price of scrap steel was $156, and the equilibrium price-quantity combination when the price of scrap steel reached $302 per ton. Suppose the cost function of a representative minimill pr..
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they don't like the taste. From an economic perspective, the company should:
From the same problem, suppose monetary expansion in the US caused all prices in the US to increase by 50%, so the turkey would be 45 US dollars, then what would happen to the exchange rate.
Stiglitz also argues that the IMF as another agenda besides its stated agenda of promoting stability and growth in LDCs. What does he mean by this? What, according to Stiglitz is the IMF's other agenda?
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