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Question: 1. Explain the difference between the "gains from exchange" (consumption gain) and the "gains from specialization" (production gain).
2. Suppose a country that is producing within its production possibilities frontier in autarky experiences an 8 percent rate of unemployment. Is it possible for it to gain from trade if the rate of unemployment remains approximately the same?
3. "The inability of factors to move from one use to another in production will completely take away any possible gains from trade." Agree? Disagree? Explain.
If this bank wanted to insulate its balance sheet from interest rate changes, should they shift their liabilities towards fixed rate liabilities or rate sensitive liabilities? Briefly explain.
the village of pescatore is situated next to a medium sized lake in which citizens can fish from privately owned boats.
An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____.
Steven receives utility from days spent traveling on vacation domestically (D) and days spent traveling on vacation in a foreign country (F), as given by the utility function U(D, F) = 10 × DF. In addition, the price of a day spent traveling domestic..
How does an employer- paid social security tax on wages affect a competitive firms supply curve
George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50 he sold only 4,000 T-shirts. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial a..
write a 700-1000 word paper in which you address the questions abovenbspusing the guide below. also do your best to
For the next five years, Hewlett-Packard raised its prices five times, and each time Canon followed suit within 24 hours. Does the pricing behavior of these computer industry firms follow the cartel model or the price leadership model? Why?
Normal 0 false false false EN-US X-NONE X-NONE The chair of the Council ..
Joe earned a high grade-point average during his four years of college. Is this achievement a strong signal to Joe's future employer that he will be a highly productive worker? Why or why not?
Now assume that there is a black market, and the price of gasoline rises to the maximum that consumers are willing to pay for the amount supplied by producers, at $3.50 per gallon. Show on the graph the areas representing producer surplus, consume..
a two-year-old child is eating raisins one at a time from a large box. even though the child doesnt understand formal
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