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1. An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each. However, for the world as a whole the expansion of production of one product must involve a decrease in the availability of the other, so that it is not clear that trade is better for the world as a whole as compared to an initial situation of non-trade (but efficient production in each country). Are there in fact gains from trade for the world as a whole?
2. What is paradoxical about the results of Leontief's test of the Heckscher-Ohlin model?
3. Laxland and Workland are two identical countries except that people in Workland work twice as hard of those in Laxland. Under all the usual HO assumptions what would be your prediction of the patterns of trade between these two countries?
4. According to former US President Bill Clinton, "Each nation is like a big corporation competing in the global marketplace." Explain how this may be true in regards to trade and how it may not be true.
How much money will be in a savings account at the end of 10years from deposits of 1000$ per month, if the account earns interest at a rate of 10% per year compounded semiannually?
An investor has $45,000 to invest. A relatively safe investment offers 3.5 % interest compounded quarterly. A more risky investment offers 5.4 % compounded monthly. The investor allocates $22,500 to each investment. How long will it take for his i..
according to the federal reserves federal open market committee 2011 the federal reserve controls the three tools of
Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.
Contrast the static and dynamic views of monopoly and the policies appropriate for each. Please provide a detailed answer.
Did government intervention help or harm the economy before and after the panic of 2008? Would you have done anything differently?
Question 1:Analyze the following statement: "Given an open economy with high capital mobility, fiscal policy is strengthened under fixed exchange rates." Question 2:What is international economic policy coordination? Using an example, illustrate the ..
The question related to Economics and the question is about perfection competition. The question is not only a descriptive question, but a practical question because it involves observing a market near you which resembles perfect competition.
You purchased a bond for 9500 dollars. The bond matured in 4 years and you sold it for 111,000 dollars. The par value (face value) of the bond was 10000 dollars. Interest payments were made every 6 months. The personal rate of return you received (so..
The United States is considering relaxing the trade embargo it has against Cuba, how would this affect Cuba's economy in both the short and long run?
Fixed cost of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information. what is the total cost of production when the firm hires 7 workers.
question 1 nbspdemand elasticity commuters in a medium-sized city can travel either by automobile or by bus. the demand
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