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The Big Mac Index computed by The Economist magazine has consistently found the U.S. dollar to be undervalued against some currencies and overvalued against others. This finding seems to call for a rejection of the purchasing power parity theory. Explain why this index may not be a valid test of the theory.
Why would China want its own currency to be undervalued relative to the U.S. dollar? How does China maintain an undervalued currency?
The course readings define marketing as "the activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." What were your preconce..
Discuss the “objective” of a resume, and develop an objective statement for a position you seek, or, expect to seek when you complete your education and training. Suppose $1 = 10.5 pesos in New York and $1 = 9.6 Pesos in Mexico City. If you had $10,0..
Health savings accounts (HSAs) A. allow employees, but not employers, to make tax-deductible contributions to an account. B. are accessible to those with qualifying insurance plans with annual deductibles of $500 or more. C. are accessible to employe..
What is the difference between a Positive Statement and a Normative Statement
Economists have devoted a lot of effort to estimating the natural rate of unemployment in particular countries at particular times. Is this a useless academic exercise, or are there good reasons to want to know this number? Explain.
Explain and show graphically the impact on printed books and tablet computers markets when a technological innovation facilitates faster and efficient
List three major reason of maintaining overnight rate for such level by bank of Canada.
Discuss whether or not the Fed should use its policy tools to smooth out the business cycle (reducing output during economic expansion and increasing output
A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in its relevant market.
Find the optimal quantity of labor supplied by a consumer who has a utility function for leisure (l) and “goods” (y) of U(l,y)=ln(l)+ln(y) , no non-labor income, a wage of 10, and 2000 hours of time.
What will the new Lerner Index be after some time with the new demand curve and market price of 30? What firms survive the new demand curve in the industry and why?
Major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and capital are used in its production process. Prior to restructuring Mitsubishi’s ..
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