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Examine the impact on a small country following an outward flow of immigrants that decreases its labor force. Assume that land is specific to agriculture and capital is specific to manufacturing, while labor is free to move between the two sectors. Assume that there is no international trade, and that the prices of the manufactured and agricultural goods do not change.
Determine whether each statement is true or false, then briefly explain why.
1. The workers who do not immigrate are better off.
2. The output of the agricultural good increases.
3. The marginal product of labor increases for the manufacturing industry.
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..
How does the concept of capabilities to function' help us gain insight into development goals and achievement explain its contribution in measuring level of development.
You've recently learned that the company where you work is being sold for $475,000. The company's income statement indicates current profits o. $18,000, which have yet to be paid out as dividends. Assuming the company will remain a " going concern" i..
In December 2014, the international price of oil has dropped to almost half of its level in June 2014. What do you think the expected impact of this drop on the US economy in the short run and in the long run using the AD and AS model? Hint: Think of..
Leon Festinger's social comparison theory suggests that we compare ourselves to members of a reference group in order to assess our own behavior. What does your choice of reference groups tell you about the concept of social comparison?
According (the semi-strong form of) the efficient market hypothesis, the price of an asset should reflect all publicly available information about the 'fundamental value' of that asset. What academic theories (i.e. published or in working papers) hav..
Draw the pre-intervention optimized supply and demand equilibrium. Explain and show what effect it has on the polis.
Suppose that investment decline by 40 units to a level of 60. What will be the new level of equilibrium income.
q.suppose the cfo of an american corporation with surplus cash flow has 90 million to invest and the corporation does
If a stock has expected earnings of 12% and a beta of 1.4 while the market risk premium is 6%, what is the risk free rate (using the SML model)?
Under the responsibility scheme proposed by the Hong Kong government, households will be charged for solid waste disposal. Is this charge justifiable from an economics point of view? Explain your answer with a diagram ( IT is Microeconomic question)
compute the price elasticity of demand between successive points. Which price maximizes publisher's revenues. Calculate and explain.
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