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Which country has the comparative advantage in each good? Explain how they could both benefit by specializing according to comparative advantage, and then trading.
Which of the following is a characteristic of economies of scale?
One way to repay a $5000 loan would be to make four annual end-of-year payments of $ 1000 each, followed by a final payment at the end of the fifth year. Assuming an interest rate of 8%, how much would this final payment be?
Suppose that Ericsson and Nokia are the two primary competitors in the market for 4G handsets. Each firm must decide between possible price levels: $100 and $90
Marcus’s utility function is U(X, Y) = (X + 2) (Y + 1). a. Write an equation for the indifference curve that goes through the point (2, 8). Graph the indifference curve for U=36 c. Let Px=Py=1 and m=11. Draw Marcus’s budget constraint in the graph fr..
Suppose Michelle makes a trip to a candy store where she intends to purchase two goods: gummy worms (g) and donkeys (d). Her utility function is U = gd. Suppose the price of gummy worms is 2 and she has $200 in income. Derive an expression for her de..
Suppose price of Treasury bill falls to $925. Illustrate what is interest rate.
Suppose that Second Republic Bank currently has $150,000 in demand deposits and $97,500 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%.
Suppose that the amount of revenue (P*Q) of yachts and vegetables was the same in the economy. Which should be taxed 10% if the government wanted to raise more revenue?
Prove this two theories causes success and failure the growth and development of developing countries with reason.
Burning coal to generate electricity can create pollution. If the market for generating electricity is competitive and is allowed to operate without any government intervention, is the equilibrium quantity of coal burned equal to, more than, or less ..
What is the NPV of this project? Should you buy the oven? Assume 10% interest rate.
At the end of 4 years, she sold the lot for a net value of $15,000. What rate of return did she receive on her investment?
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