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Research and analyze the US trade deficit. Answer the following questions.
How large is the US trade deficit (relative to GDP)?
How has the trade deficit changed recently? Why?
Do you expect this trend to continue?
Is this trade deficit a bad thing or a good thing, and why?
Describe what would happen if we implemented more trade protection (tariffs, quotas, VERs)
Mylie’s total utility from singing the same song over and over is 50 utils after one repetition, 90 utils after two repetitions, 70 utils after three repetitions
Let's consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita always consume equal amounts of rice and beans.
Explain the aims of counter cycliceal policy. Show how governments might achieve these aims by using the instruments available to them
Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.
Illustrate what does the fundamental assumption of marginal utility theory suggest about the connection between money and happiness.
Do not post on website: The principal-agent problem occurs if the manager (CEO) is not present to monitor the worker (manager). How can she get the worker (manager) to do what is in her best interest?
Brian and Allen are thirty years old with identical academic records and job history. Both currently have jobs paying $40,000 each year.
Illustrate what has happened to the price and quantity of the substitutes and complimentary goods/ services for your selected product over the last year.
Consider the demand for gasoline. When the price of gasoline increases by a relatively large amount, the quantity of gasoline purchased falls by a relatively small amount. Consider the market for soap. How would you determine if soap and shampoo ar..
The company is risk neutral and so maximizes expected profits net of wages.
Mitchell Electronics produces a home video game that has become very popular with children. If the threat is not credible, what changes in the game would be necessary to make the threat credible.
The PPF curve shows the economic choices a country can make about production given scarce resources, a given technology, and a given quantity of inputs. Assume you are a developing country, producing food and clothing at maximum capacity.
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