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Question
Consider the Ricardian model taught in the class with only two countries in the world, China and Singapore, producing two goods Rice and Cloth. China has comparative advantage in Cloth and Singapore in Rice. Ricardian model says they should specialize according to their comparative advantage. Why China may not follow such a rule, while for Singapore it is not a concern?
Suppose a company produces $5M worth of output and has sales of $2M each to domestic and foreign customers. It imports $1 M worth of raw material, pays its workers $3M in wages, pays its creditors $2M in interest, and has minus $1M in profits for its..
Charlie has $ 1000 to allocate between football tickets and movie tickets over the year. The price of each football ticket is $50, and the price of each movie ticket is $10. His marginal rate of substitution of football tickets for movie tickets equa..
Compute the revised slope of the AE cure and the multiplier when you know that the imports and the marginal tax rate
If you receive an inheritance of $10,000 today, how long do you have to invest it at 8% per year to be able to withdraw $2,000 every year forever? Assume the 8% per year is a return that you can depend on forever.
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Based on demand function from previous question, when price of good is $50, how many units of good are demanded.
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A city that is attempting to attract a professional football team is planning to build a new stadium costing $500 million. Annual upkeep is expected to amount to $1,000,000 per year. what will be its capitalized cost at an interest rate of 10% per ye..
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