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Which statement is ture as it regards: International Economic Linkages
a) Prosperity aboard will lead to a reduction in American exports due to a slow economy
b) A strong U.S. dollar will lead to an increase in exports
c) Increases in tariffs lead to more exports to our trading partners
d) Foreign prosperity leads to an increase in American exports
Explain the impact of economies of scale on the capacity of a firm. Understand how to use decision trees to analyze alternatives when faced with the problem of adding capacity.
Fashionable Designs, Ltd., plans to market a new sports blazer. Based on information provided by the accounting department, the company estimates fixed costs of $40,000 per year and average variable costs of: AVC = $1 + $0.001Q, where AVC is average ..
"Mercantalism recommends that a country should limit its exports, so that more of the otherwise-exportable products are instead available for local consumption." Do you agree or disagree with this characterization of mercantilism's message? Explain.
Compute the range of demand for which each location has a cost advantage. Which plant location is best if demand is 30,000 units?
Find the values which maximize or minimize for the following function and determine where you have a maximum to minimum. Graph the function and discuss the context of concavity.
When quantity moves proportionately to the same amount as price, demand is:
Supply curve is given by L = 20w. What equilibrium wage rate and quantity is of labour hired. What is economic rent earned by workers.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
Illustrate what might you call an outward shift of a nation's production possibilities frontier.
If the economy is operating at a point less than full employment (as it is now), what would we want to see happen to GDP? For right now, let's just look at the C (consumption) component of our GDP equation. What would we want to see happen to consume..
Assume income is $10, the price of each slice of pizza is $1, and the price of each glass of beer is $2. Now change income to $12 and show a demand curve for pizza.
Suppose that First National Bank, Second National Bank, and Third National Bank have zero excess reserves. The required reserve ratio is 20%. The Federal Reserve buys a government bond worth $1.5 million from John, a client of First National Bank. Fi..
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