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Countries A and B have two factors of production, capital and labor, with which they produce two goods, X and Y. Technology is the same in the two countries. X is capital- intensive; A is capital-abundant. Analyze the effects on the terms of trade and on the two countries’ welfare of the following (hint: use standard trade model):
a. Country A experience biased growth toward good X.
b. Country A impose tariff to the imports.
You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. If your income is $9.00 and the prices of X and Y are $2.00 and $1.00, respectively, what quantities of each will you purchase to maximize utility? Wh..
If the mutual fund will average 9% annual return over the course of your career, explain how much can you expect at retirement.
If the price elasticity of demand is E = -1/2, a 10% increase in the price will
Using marketplace equilibrium why do baseball players also CEOs make more money than your lowly Economics instructor.
Draw the complete Solow growth model, identify equilibrium and label completely and correctly. Now suppose that there is a negative shock to total factor productivity. Draw the implications of this change on your graph. Identify the changes to per ca..
To give Mom a day of rest, Dad plans to take his two children, Bart and Cassie, on an outing on Sunday. Bart prefers to go to the amusement park (A), whereas Cassie prefers to go to the science museum (S). What is the rollback equilibrium to this gam..
Which of the following is NOT a reason that we discussed for global imbalances that arose in the early 2000s and persist to some degree to this day?
Illustrate what sets the 1st generation marginal lists apart from their second generation marginal list
If it cost Wardco $10million to treat the water and the value of mined products to customers is $8million, requiring water treatment would kill the project. Should Wardco be required to treat the water in this case?
Calculate Max's marginal utility from snorkeling at each number of hours per day. Does Max's marginal utility from snorkeling obey the principle of diminishing marginal utility.
Suppose that the U.S. government determines that cigarette smoking creates social costs not reflected in the current market price and equilibrium quantity of cigarettes. A study has recommended that
You want to purchase a security that will pay you $1,000 seven years from now. If you want to earn an annual nominal rate of 6.5 percent, how much should you pay for this investment today? You invest $3,600 today at a nominal annual rate of 5.5 perce..
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