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The theory of factor price equalization suggests that wages eventually will equilibrate if labor is perfectly mobile. Suppose labor is not perfectly mobile. State an example of why labor might not be perfectly mobile. Draw a graph that shows how wages will not equilibrate in this instance, and explain whether the outcome is an equilibrium outcome
compare economic development strategies based on import substitutions versus export promotion. your 200 word answer
The rate of growth in the productivity of capital is one percent, the rate of growth of capital is two percent, the rate of growth of labor is one percent, and the rate of growth in the productivity of labor is three percent from this we know that
Derive the PPF for both countries and graph them and who is specializing in Bourbon according to Comparative Advantage?
Presume that the representative consumer’s preferences change, in that his/her marginal rate of substitution of leisure for consumption increases for any quantities of leisure and consumption. Describe what this change in preferences means in more in..
Is your explanation consistent with the fact that franchised tutoring services often charge a fixed royalty per student enrolled?
In any city at any time, some of the stock of usable office space is vacant. This vacant office space is unemployed capital. How would you explain this phenomenon Is it a social problem
at a large institution of higher learning the demand for football tickets at each game is 100000 -6000p. if the
consider an investor with 10000 available to invest. he has the following options regarding the allocationof his
Suppose the government decides to place a tax on competitive business profits that would cause businesses to decrease output and generate a deadweight loss. Revenues from the tax would be redsitributed to low-income individuals. The decision to le..
The crowding-in effect depends on the sensitivity of investment
An interesting example of strategic behavior comes from the 1997 article regarding Microsoft's investment in Apple (New Straits Times, 1997). The article is included in Required Readings list.
this release also states that the federal reserve is in the process of purchasing 1.25 trillion of agency
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