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1. What is the difference between relative factor endowments and relative factor intensities?
2. What does the Hecksher-Ohlin theorem say about home versus foreign countries while they remain in autarky?
3. Assume that the U.S. has 400 units of K (capital) and 300 units of L (labor) while Mexico has 75 units of K and 125 units of L. In both countries it takes 3K/L to produce each unit of X but only 2K/L to produce each unit of Y. Which nation has the comparative advantage in exporting X? Which nation has the comparative advantage in exporting Y?
What is fiscal policy? What kind of fiscal policy is needed to reduce unemployment problem? What is monetary policy? What kind of monetary policy is needed to fight inflation problem?
What effect would a 30 percent reduction in the number of new homes completed have on Mapco's sale.
Discuss illustrate what will take place to the demand curve for economic text book in response to a reduction in student grants.
Summarize the arguments as to why we should not worry about the very large size of recent and current Federal deficits and our National debt. Deficits naturally occur with business cycles. Deficits can be used to lower unemployment now. Deficits spen..
Discuss how a purely competitive firm might gain market power (and therefore no longer be a purely compettiive firm). Be detailed and specific. Why would a firm wish to gain market power? How would the firm's success in gaining market power affect th..
Quasimodo has a demand function for earplugs that is given by the equation D(p) = 100 − p. What is the change in net consumer’s surplus when the price changes from $50 to $70?
a) What is Terms of Trade? How is it computed? Explain with an example. b) What is Comparative Advantage? Explain with an example of a two-country and two-commodity model.
According to the rule of most favorable input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the corporation.
The annual fixed costs for a plant are$100,000.For production at 80% of the full capacity, the variable cost is$140,000 and the net sales is $280,000 if the selling price per unit is $40 Draw the breakeven chart. what is breakeven point in units of p..
How does a tax affect an individual’s decision? Consider the case of an individual who consumes two goods: bread and tortillas, both of which are initially free. Also, assume that the price of each good and the individual’s income are given
Describe the specific target market - Develop strategies for entering the target market
You are working for a company that is considering purchasing a new piece of equipment that will reduce operating costs by $4,000 annually. If the purchase price is $50,000, and it has a 25 year life with a salvage value of $5,000, what is the present..
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