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1. a. A small country imports industrial goods and exports agricultural goods. Both industry and agricultural are perfectly competitive. A new minimum wage law raises wages in industry but not in agriculture. However, all workers displaced from industry as a result of the new, higher wage find employment in agriculture. Is an import tax on industrial goods the best way to deal with any resulting problems? Why (not) ?
b. Your country imports cigarettes. Identical cigarettes are also produced inside your country in a prefectly competitive industry. The Government wishes to reduce the consumption of cigarettes. Is an import tax on cigarettes the best way to reduce cigarette consumption? Why (not) ?
In what conditions will an increase in the price of a product lead to a reduction in total spending for that production.
Describe how capital and labor affect the production function for both a toy manufacturer and a retailer during the Christmas retail season. An owner of a local movie theater is having difficulty maximizing labor. Sometimes there are too many employe..
Research the topic of how marketers use personality tests to understand consumer behavior. The use of information around psychological traits and demographics can be significantly valuable information to the marketer.
Research deflation in Japan and explain what happened to the equilibrium price level in Japan during the early 2000s. How did Japan's equilibrium price level adjust between the middle of 2008 and early 2010?
Elucidate the law of demand. Why does a demand curve slope downward. How is a market demand curve derived from individual demand curves.
Player 1 ("hider") and Player 2 ("seeker") play the following game. There are four boxes with lids, arranged in a straight line. For convenience, the boxes are labeled A, B, C, D. The admin of the game gives player 1 a $100 bill, and player 1 must hi..
Calculate the midpoint price elasticity of demand between $9 and $10. Is the demand in this range elastic or inelastic? Calculate the midpoint price elasticity of demand between $10 and $11. Is the demand in this range elastic or inelastic?
Suppose that there are freezing temperatures in Florida. At the same time the press reports that drinking orange juice significantly reduces the risk of stomach cancer. Predict the effect on equilibrium price and quantity.
Assume the inflation rate is 1.59 %, an income tax rate of 39 %, and straight - line depreciation. The MARR is 10%. What is the Internal Rate of Return (IRR) of "Alt. A" after taxes in actual 5?
The price elasticity of demand is: The demand curve for physician office visits is quite inelastic; therefore, a:
Recent survey of high school students, it was found that the average amount of money spent on entertainment each week. Values are representative of all high school students.
Using the national income identity find the value of imports (IM). Illustrate what is the current account balance. Illustrate what is the savings rate.
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