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SUPPOSE SOUTH kOREA CAN PRODUCE 100 COMPUTER CHIPS WITH 10 HOURS OF LABOR INPUT AND 50 BED LINENS WITH 6 HOURS OF LABOR INPUT. THE US CAN PRODUCE 100 COMPUTER CHIPS IN 8 HOURS OF LABOR INPUT AND 50 BED LINENS WITH 4 HOURS OF LABOR INPUT.
1. WHAT IS THE OPPORTUNITY COST OF PRODUCING 100 COMPUTER CHIPS IN SOUTH KOREA?
2. WHAT IS THE OPPORTUNITY COST OF PRODUCING 50 BED LINENS FOR SOUTH KOREA?
3. WHAT IS THE OPPORTUNITY COST OF PRODUCING 100 COMPUTER CHIPS FOR THE US?
4. WHAT IS THE OPPORTUNITY COST OF PRODUCING 50 BED LINENS FOR THE US?
USING COMPARATIVE ADVANTAGE, WHICH COUNTRY SHOULD IMPORT BED LINENS? WHY?
SAR Publisher is a monopolist in publishing a textbook on Hong Kong economy. Besides the Hong Kong market, SAR Publisher also sells this textbook in United State.
All firms in a Cournot monopolistically competitive industry have the same cost function C (q)= 25 + 10q. Compute the equilibrium price, total output, firm output and number of firms in the industry.
Suppose the only firm in an economy produces $10 worth of final goods in a year and only sells $9 of goods that year. We know that GDP can be equivalently be thought of as either total spending on new goods and services in an economy.
ACME Corporation consists of 250 grocery stores throughout the Midwest. At the starting of 2008 its statement of net worth showed the following data,
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Suppose autonomous net taxes rise through $500; the marginal propensity to consume=3/4. Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed.
Nintendo and Sony Playstation are each planning to introduce one new game into the market. Each is considering three different kinds of games: an urban action game like Grand Theft Auto, an adventure game like Tomb Raiders, or a strategy game like..
Margaret has a project with a 28000 first cost that returns 5000 per year over its 10 year life. it has a salvage value of 3000 at the end of 10 years. if the marr i 15%, what is the annual worth of this project?
Suppose that the State Bank announces an increase in the money supply. As a result, people start to expect higher prices. What will happen to the short-run aggregate supply curve?
Explain why the required reserve ratio, the excess reserve ratio, and the currency ratio are in the denominator of the m1 and m2 money multipliers.
Assume the Chinese government abandons the peg and allows the yuan to float.What would be the effect on Chinese imports and exports.
In the light of the Ricardian model, how might you evaluate the claim by developing nation that they are at a disadvantage in trade with powerful industrialized countries.
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