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Assignment:
Go to The Economist website and search for the Big Mac Index for a recent time period. Compare the Purchasing Power of the United States with another country. Try to choose a country with which you are not very familiar. What does this parity say about the potential standard of living in the country you chose? What does it say about the potential wage level?
Over several decades, some industries, such as textile and clothing, which were once a significant part of the U.S. economy, have shifted manufacturing abroad. Using the idea of opportunity cost, provide an explanation of the reasoning behind this shift. How has this shift affected economic well-being locally? How do the gains compare to the losses?
a scientist testifying before a congressional hearing on the effects of estrogenic pesticides told every man in the
Discuss non-rational factors that may have a role in the valuation of stocks and stock market equilibrium. Provide specific examples to support your response
A manufacturer of precision plastic parts estimates that ATR spectroscopy can save the company $5000 per year by reducing returns of out-of-spec parts. What is the future worth of the savings if they start now and extend through year 5 at an inter..
The Chinese government has refused to print currency in denominations higher than the 100-renminbi note, which is the equivalent of about $16. The United States prints $100 bills and all other countries print currency in denominations that are at ..
Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? Wh
Managerial Economics and Business Strategy, 7e Page 1 Proposed Merger between Heinz and Beech-Nut Scrutinized Michael Baye and Patrick Scholten prepared this case to serve as the basis for classroom discussion rather than to represent economic or leg..
One can derive a demand function for health and for medical services from the Grossman model. Explain the differences between the two demand functions. Why does demand for health and for medical services depend on age?
Find the Nash equilibrium (and also explain how you come up with this equilibrium). Explain the implication of this equilibrium with regard to its stability.
Explain how each of these activities affects government, households, and businesses. Explain the flow of resources from one entity to another for each activity. Relate at least one current event to the activities.
If the production efficiency locus in the Edgeworth box diagram were the diagonal of the box, what would be the shape of the production-possibilities frontier.
It is possible to construct situations in which a consumer can find several points that all maximize her utility. Take the case of perfect substitutes. In Figure S.1.5, we have four indifference curves for perfect substitutes.
It can produce 100 cars with 200 workers and 50 machines, or it can produce 166 cars with 300 workers and 75 machines. Would you describe the manufacturer production function as exhibiting decreasing, constant, or increasing returns to scale? Explain..
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