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For each question, answer T/F/U and briefly explain the answer in your own words
1. In the Ricardian model, two countries can gain from trade with each other even if their relative prices in autarky are the same.
2. In the case of U.S. textiles, the United States should not import textiles from Asian nations since it has absolute advantage in production.
3. In the real world, there is no support for the Ricardian model of trade: the prediction that wages are determined by labor productivities does not hold in the data.
4. In the Ricardian model, trade with a low wage country will increase aggregate unemployment levels.
5. Wages in the US are $15/hour while wages inChina are $3/hour. Goods manufactured using only labor will be 5 times cheaper in China.
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question 1. examine whether the following statement is true or false. explain.the own price elasticity of demand is
Restaurant Marketing Services, offers affinity card marketing and monitoring systems to fine dining establishments nationwide. Fixed expenses are $600,000 a year.
Write a one page response to the "U.S. regulators should enforce antitrust laws against the Microsoft Corporation."
Your friend invests and patents a portable ice cream carrier (PCC) which you plan to manufacture as well. You determine the demand function for the product is
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What have been the driving forces of growth in China? View on YouTube: Riding China's reforms to riches - 18 Dec 08 (3:08 minutes). How did industrial development help the Chinese to become affluent?
Compute the growth rate of the dividend, g. (You can either compute the ROE*plowback ratio or compute the annual growth rate of dividends) e) Based on this information, what should the price of the stock be today using the constant-growth dividend ..
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