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Let's take a simple example of two countries and two goods. Country 1 produces 10 units of Wine and 5 units of cloth in 1 hour. Country 2 produces 4 units of wine and 1 unit of cloth in 1 hour. Who has absolute advantage and who has comparative advantage in Wine and Cloth respectively? Who will export/import which good to/from the other country? Explain Answer
If hard freeze eliminates Brazil's premium coffee crop, illustrate what will happen to the price of premium coffee.
A more serious problem with input-based pay systems (e.g., a wage her hour), relative to an output--based system, is:
Machine A has a service life of 4 years and Machine B has a service life of 3 years. If the required service period is 6 years and either machine can be repurchased in the future for the same price, what is your analysis period?. If the required serv..
Does a tug of war between AVC and AFC eventually take place?
A portfolio has an average return of 12.4 percent, a standard deviation of 15.8 percent, and a beta of 1.35. The risk-free rate is 2.6 percent. What is the Sharpe ratio? Your portfolio has a beta of 1.17, a standard deviation of 14.3 percent, and an ..
Given the equation of exchange set forth by the quantity theory of money (M x V = P x Q), where M is the supply of money, V is the velocity of money, P is the price level, and Q is real output, which of the following best defines M?
Explain why do changes in bank reserves resulting from open-market operations by the fed produce multiple changes in checkable deposits in the economy.
Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers.
Elucidate Illustrate what would happen if an outside agency Concluded the prices eBay could charge.
Explain when a researcher is trying to estimate the causal effect of X on Y, and finds that the R^2 of her bivariate regression model is around 0.04.
Providing a subsidy to correct for an overallocation of resources Providing a subsidy to correct for an underallocation of resources.
You live in a small town with basic medical care facilities and a couple of general practitioner physicians. One of the physicians has said that your cousin needs to be seen by a specialist. However, the nearest specialist is 3000 miles away, on the ..
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