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1. In a day of production, companies in Angola can manufacture 200 liters of oil or 100 kilograms of tungsten. companies in Namibia can produce 160 liters of oil or 60 kilograms of tungsten. Which country has an comparative advantage in the production of tungsten?a. Both countries are equally advantageous in production.b. Neither country has an advantage in production.c. Angola has the comparative advantage.d. Namibia has the comparative advantage.
2. In a day production, firms in Israel can produce 77 microprocessors or 24 ballistic missiles. Firms in the United States can produce 88 microprocessors or 14 ballistic missiles. Which country has the absolute advantage in the production of ballistic missles?a. Both countries are equally advantageous in production.b. Neither country has an advantage in production.c. The United States has the absolute advantage.d. Israel has the absolute advantage.
Suppose If factor-intensity reversals were indeed prevalent in the real world, how might this fact be used to describe the Leontief paradox?
Assume the dollar-pound rate equals $.5 per pound. According to purchasing power parity theory, determine the dollar's exchange rate under each of the following scenarios?
The given table lists the stages needed in the production of a personal computer. Determine the value of the computer in the GDP?
Suppose the effect of monetary policy on the exchange rate value of the dollar. Estimate the effect of expansionary monetary policy on each of the following.
Martin Feldstein and Charles Horioka of Harvard University discusses that in a world of perfect capital market integration, there should be little long term correlation in domestic saving and investment.
Applying the basic circular flow model, explain why the value of businesses' output of goods and services equals the income of households.
Describe how the following events would effect market for South Africa's currency, the rand, suppose a floating exchange rate.
Use the table given below: Value in billions In each of following cases, indicate if GDP is affected, under what category and what happens to GDP.
Assume you wish to start a business in an area in which a natural crisis has recently occurred. How would you decide which kind of business to start?
Intra-industry trade involves nations exporting and importing the similar goods. Why would nations export and import same or similar items?
Describe both foreign income and repatriation of earnings using 3-examples that any worker can understand.
A Company issues $1,000,000 of commercial paper with a maturity of 60 days and a discount rate of 5%. The paper is sold through a dealer who charges 0.25 percent.
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