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Suppose that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition. Assume that the United States is a price taker in the world auto market. The following graph shows the U.S. auto market, the world price before the tariff ( ), and the world price after the tariff ( ).
An automatic veto that occurs when Congress goes out of session within ten days of submitting a bill to the president and the president has not signed it, is known as
What is globalization (please define it both as a process and outcome)? What factors can you identify in explaining why globalization occurred? How do you assess its impact upon both rich countries and poor ones, in particular, the issue of inequalit..
Assume that the demand for a product X is heavily influenced by the price of another product Y (Py), and the income of consumers (I). The cross-price elasticity of X with respect to Y is exy = 1.25, and the income elasticity is eI = 2. Are X and Y co..
What legal and political influences can affect the decisions of judges? How does the judiciary play a part in policymaking?
Large-scale wars typically bring a suspension of international trading and financial activities. Exchange rates lose much of their relevance under these conditions, but once the war is over governments wishing to fix exchange rates face the problem o..
A firm’s short-run cost function for the production of gizmos is given by the following expression: C(y) = 10y2 + 200y + 100 000 a. Calculate the range of output over which it would be profitable for this firm to produce gizmos if it can sell each gi..
Why might economists prefer private ownership of monopolies over public ownership of monopolies?
Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbour, Friday, is a fisherman, and is willing to trade 2 fish for every coconut that you are willing to give him. Another neighbor, Kwame, is also a fisherman, and he i..
Thomas has income of $1500 today and $1000 tomorrow. He can lend and borrow at an interest rate of 10%. There is 10% inhalation. His preferences for inter temporal consumption are represented by the following utility function U (c1 ; c2 ) = c1 + c2 ...
Suppose the civilian no institutionalized working age population is 35.9 million in Labor land, 4.6 million are working part time, and 15.71 million are working full time. Labor land used the Bureau of Labor Statistics (BLS) definitions for unemploym..
Use the FX and money market diagrams to answer the following questions. This question considers the relationship between Swedish kronor (SEK) and Danish krone (DKK). Let the exchange rate be defined as Swedish kronor per Danish krone. Assume this cha..
Calculate the standard deviation of annual sales. Calculate the coefficient of variation of annual sales.
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