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Overall we see that within the realm of trade liberalization we see the reduction and/or removal of restrictions of barriers, such as tariffs, on the free exchange of goods between nations. The results of such actions is that trade liberalization entices more trade in commerce and the pursuit of more aggressive agreements whereby price and supply is at a maximum to meet demand. Overall, what would you say is the biggest challenge to this process?
Although inflation has been steady at a 2.5% average rate, economists now see trouble on the horizon due to the increases in crude oil prices over the next eight years. The leading economists in the oil industry expect oil prices to inflate; at first..
Ron Swanson takes 1 week to make a rocking chair or a bird house. Andy Dwyer would take 3 weeks to make a chair or 2 weeks to make a bird house. Assume that both people are okay with having partially-completed projects (e.g. half a chair) because the..
Suppose a manufacturer is a monopoly. This manufacturer produces a good at MC = 4 and sells it to a retailer. The manufacturer has no fixed costs. The retailer is also a monopoly, and it sells the good bought from the manufacturer to consumers. What ..
You bought a $100 used guitar and agreed to pay for it with a single $120 payment at the end of 6 months. Assuming semi annual (every 6 months) compounding, Calculate the nominal interest rate, Calculate the effective interest rate
In December 2017, Congress passed a substantial decrease in taxes. Assume economy starts out at potential output.
Assume that the state government is interested in subsidizing the local production of steel. The current price of steel is $1600 per ton and the government wants to provide a subsidy of $100 per ton. In your diagram above, indicate the long-run post-..
Statistical prediction are generally based on a random sample selected from population. In your own opinion should people trust statistical prediction?
Explain how consumer surplus changes when a monopoly price discriminates. Explain how consumer surplus, economic profit, and output change when a monopoly perfectly discriminates.
Starting the profit equation or the condition that determines the quantity for a firm, what is the quantity that "Ducky" provides to the town?
How much will total output increase in terms of percent? What happens to the rental price of capital? What happens to the real wage?
Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect an increase in government spending will have on output, exports, imports, and net exports. Clearly label all curves and clearly label the initial and final equilibria
An auto-part manufacturer is considering establishing an engineering computing center. This center will be equipped with three engineering workstations that each would cost 25,000 and have a service life of five years. The expected salvage value of e..
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