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Q. One of basic economic laws is ‘law of one price.' It says that provided certain assumptions one would expect that if free trade is allowed, price of goods in countries should converge. a. Can you list illustrate what three of those assumptions likely are? b. Should law of one price hold for labour also? Why or why not? c. Should it hold for capital more or less so than for labour? Why?
Evaluate change in costs over period in real terms, first in 2004 dollars and m in 2005 dollars. Are your answers same. Explain why or why not.
Show the effects of an increase in the total factor productivity, z, on the Laffer curve, on the equilibrium tax rate, and on consumption, leisure, the quantity of labor supplied, and output.
A major state university in the South recently raised tuition by 12%. An economics professor at this university asked his students, "Due to the increase in tuition, how many of you will transfer to another university.
If fixed costs increase to $1200, what will happen to equilibrium price and quantity.
Which of explanatory variables in regression are statistically significant, Elucidate. How much of total variation in pie sales does regression model elucidate.
The government sets a price floor of $5 in the above market. Is this price control binding? If so, is there a shortage or a surplus and what is its magnitude.
If you were a manager at PepsiCo, would you try to convince your colleagues that introducing the new soft drink is the most profitable strategy.
Presently, boats rent for $500 per day also workers cost $100 per day. How many workers do you need to produce 200 tons of shrimp?
Illustrate what is the size of the labor force. Illustrate what is the official unemployment rate.
how resource growth and improvements in technology can allow a nation to increase its production of government goods and services while also increasing its output of private goods and services
Venezuela had considerable capital outflows after election of Hugo Chavez. If Venezuela had fixed exchange rates, determine what effect would these flows have had on Venezuela's overall balance and value of the Bolivar
Assume he takes welfare and does not work. Illustrate what is his reservation wage. He will not lose his welfare if he works.4. Suppose he is working and receives no welfare.
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