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“A subsidy may provide import-competing producers the same degree of protection as tariffs or quotas but at a lower cost in terms of national welfare.” Discuss – in what sense is this statement correct? In what sense might it not be correct?
A firm uses 1 capital for every 5 workers to produce 1 output. The price of output is $75, the wage rate is $8, and the rental rate for capital is $2 per unit. Assume capital is not a fixed cost. What is the profit maximizing level of labor demand if..
Illustrate what is the Accord's perceived relative advantage with respect to reliability.
Suppose that Ian and Mike are cottagers on opposite sides of a small lake. Ian values electricity at his cottage at $500 and Mike at $700, but in order to get electricity for their properties a trunk line costing $1000 must be built. If they are unab..
Assume that over a range of prices, the price elasticity of demand varies, total revenue curve over these two ranges of the demand curve as price fall.
If the university's school of engineering can earn 4% on it's investments, how much should be in it's savings account to fund one $5000 scholarship each year for 10 years?
Monetary policy refers to the actions the
what should it do to increase profit? If the firm is profit maximizing, is the firm in a long-run equilibrium? If not, what will happen to restore long-run equilibrium?
If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the va..
Compute the percentage change in nominal GDP, real GDP also the GDP deflator.
Which of the following would cause an increase in long-run aggregate supply?
Is conspicuous consumption for real or just a rational response to higher income? How does this effect the consumption curve and aggregate expenditures model? What is the relationship with GDP?
The Chaplin Company issued bonds several years ago with a 6.5% coupon rate and semi-annual coupon payments. If the bonds have 12 years to maturity and Charlie requires a 4.75% rate of return for this type of investment, what is the value of the bonds..
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