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Germany is a net creditor nation where the Germans own more assets in the rest of the world than the rest of the world owns assets in Germany. The German external surplus is directly caused by: (a) years of German households buying Audis, Mercedes, BMWs, and other German luxury cars. (b) years of large German government budget surpluses. (c) the high value of the Euro, which makes it cheap for Germany to buy assets in the Rest of the World and expensive for the Rest of the World to buy German assets. (d) years of large German trade and current account surpluses.
A consumer receives income y in the current period, income y' in the future period and pays taxes of t and t' in the current and future periods, respectively. The consuer can borrow and lend at the real interest rate r. Use diagrams to determine the ..
Given that China is a relative labor abundant country and Taiwan is a relative capital abundant country. According to the Heckscher-Ohlin Model, China should export labor intensive product and Taiwan should export capital intensive product.
A brilliant young scientist is killed in a plane crash. It is anticipated that he could have earned $240,000 a year for the next 50 years. The attorney for the plaintiff’s estate argues that the lost income should be discounted back to the present at..
Alternative Uno has a first cost of $10,000 and annual expenses of $3,000, whereas Alternative Dos has a first cost of $35,000, annual expenses of $2,000, and a recurring cost of $5,000 every 10 years. If both alternatives have an infinite life, whic..
Discuss some of the advantages and disadvantages of outsourcing.
Plot profit as a function of demand and determine the optimal value of demand.
Was the welfare reform the right approach to poverty? Is street crime more harmful than white-collar crime?
As consumers we loke competition because it lowers prices and increases supply. Many products and services we use started out with limited choices and high prices. Then for various reasons more competitors entered the market and our choices increased..
Manufacturer A is starting to make Gismos at an initial production cost of $95 for the first unit and has been lowering the cost with a learning rate of 79 percent. Manufacturer B also started this year with an initial production cost of $288/unit wi..
Write a 1,050- to 1,400-word paper that uses two to three economic tools and concepts to evaluate a current issue or situation that exists in today's health care industry. Some examples of economic tools and concepts are supply and demand curves, ..
Equipment purchased 2 years ago for $70,000 was expected to have a useful life of 5 years with a $5,000 salvage value. Its performance was less tha expected and it was upgraded for $30,000 one year ago. If replaced the existing equipment will be sold..
Suppose that a computer software company controls the operating system market. Although the government knows that the price is higher than it would be in the presence of competition, it believes that such profits are crucial to incentivizing innovati..
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