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What types of products does the US export and what types of products do we import?
Why do you think those are the products we export or import?
How does the strength of the dollar impact imports and exports?
Where appropriate, cite examples from your text or other readings.
Assume that two power plants, Firm 1 and Firm 2, release arsenic in a small urban community that exceeds the emissions standard. To meet the standard, 40 units of SO2 must be abated in total. Determine the abatements for company 1 and 2 under the cos..
Suppose the economy is at full employment with expected inflation rate 7% and nominal interest rate 11%. Suppose now that the expected inflation rises to 9%. After this change. What is the nominal interest rate? What is the real interest rate?
Discuss the differences between accounting profit and economic profit. What does it mean when a company makes zero accounting profit? How about zero economic profit?
Suppose the CFO of an American corporation with surplus cash flow has $90 million to invest and the corporation does not believe it will need to utilize these funds to retool or expand production capacity for 1 year. What must the CFO expect about th..
The main drawback of the Herfindahl-Hirschman Index (HHI) is that:
You and other college students are deciding whether to major in music or engineering. You learn that there is a shortage of engineers making it easy for engineering graduates to find employment while there is a glut of musicians for whom finding a jo..
Now assume that once he earns $400 he loses all his food stamp assistance. How does this change his budget constraint.
Is Deflation Good for Workers? Why or why not? Why do you think deflation can be bad for the economy? What is the impact of deflation on the economy and monetary policy?
The economy is at full-employment and spending increases, which spurs inflation - Which of these groups would be helped by inflation
Messi has 20 kilos of strawberries and 10 kilos of raspberries. Denote by S and R the quantities he consumes of strawberries and raspberries, respectively. These are the only goods, and their prices (in $/kilo) are: pR = 4, pS = 1. Given his endowmen..
Working at home (preparing meals, taking care of children is not counted as part of GDP. Such work also doesn't constitute employment in labor- market statistics. Calculate the measured employment and unemployment and the measured labor force for eac..
What will happen to the price and quantity? What will happen to the amount that domestic producers supply? What will happen to revenues of domestic and foreign producers?
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