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“Once we recognize that product differentiation is the basis for much international trade, there are likely to be more winners and fewer losers in a country when the country shifts from no trade to free trade.” There may be several reasons why this statement is true. What are the reasons? Explain each briefly.
Suppose OPEC members met and decided to increase their oil production (and thus lower prices) for six months. This change will cause many firms’ input prices in the U.S. to __________. This change in input prices will cause a _____________ aggregate ..
The Financial Advisor is a weekly column in the local newspaper. "I need a new car that I will keep for 5 years. I have three options. I can (A) pay $19,999 now, (B) make monthly payments for a 6% 5-year loan with 0% down, or (C) make lease payments ..
Suppose that the initial output equilibrium was 200 units. Assume that the consumption function is: C=25+0.8YD. Suppose there is now a decline in inestment of 8 units. What will be the new equilibrium level of income? What increase in government spen..
Observe and study the service economy operation processes. Identify possible service operations topics, for example service process, service blueprint, service encounters and service quality.
Are there differences in how the Democratic Party and the Republican Party view the economy? What are the differences if any?
To help you reach a $5,000 goal five years from now, your father offers to give you $500 now. You plan to get a part-time job and make five additional deposits, one at the end of each year. (The first deposit is made at the end of the first year). If..
Three students consider the option of forming a lawn care and landscaping business during their summer vacation. They estimate the following costs: Insurance $2,600; Equipment Rental Fees $1,000; Fuel and Supplies $4 per lawn serviced and Miscellaneo..
The normal supply and demand models take the supply and demand of a particular good and show that the equilibrium price is where the two curves intersect. At this point, all the people below the equilibrium point value the good as worth less than the..
Which of the following is a characteristic of the oligopoly model?
An economist has estimated the demand for cable television services in Eastern Pennsylvania, and has found the following elasticities: If the cable television company wants to increase revenues, it should increase price.
Here's a story economists tell one another: A Nobel Price-winning economist flew to New York City for a conference. He got into a cab, and started talking with the cab driver. The cab driver said, "Oh, you're an economist? Let me tell you, this econo..
Define adverse selection in a general way and then provide a more specific definition of adverse selection in an insurance market and explain how adverse selection manifests itself and becomes a problem in insurance markets.
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