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American television commentator C makes the following statement: "Reducing the barriers to trade with low-wage countries will expose our workers to competition from millions of low-paid workers in the developing world. The result will be that American wage levels will plunge downward until they equal the wage levels in China and other poorer countries." Comment using economic theory.
What is the independent variable? What is the dependent variable? What is the intercept? What is the slope? Which equation represents demand side? Which equation represents supply side? What are endogenous variables in this model? What are exogenous ..
In an attempt to bring lenders and borrowers together following the financial crisis of 2008, the federal reserve made a large amount of new funds available to financial markets. Any of these loaned out by banks would be classified as __________ of t..
The government wants to make Medicare benefits available to more people, but to achieve this goal, it needs to make cuts in the existing Medicare budget. The two areas where they are considering cuts are non-essential elective surgery and 6-12 month ..
The inverse market demand in a homogeneous-product Cournot duopoly is P = 171 – 2(Q1 +Q2) and costs are Company 1, C1(Q1) = 25Q1 and Company 2 C2(Q2) = 26Q2. Calculate the equilibrium output for Company 2
Illustrate what established the permanent membership number in the House of Representatives.
You have been hired by Nobody State University (NSU) as a consultant to help the university with how to increase their total revenue. so they have hired you to help them in their last attempt to find an appropriate solution so that the university can..
The role of Bank Regulation has become increasingly complicated in maintaining “Safety and Soundness” of the Financial System. What is Micro-Prudential Supervision of banking institutions? The 2000s witness a dramatic increase in Financial Engineerin..
Why would you expect the velocity of circulation of a monetary aggregate such as M1 or M2 to rise during periods of high interest rates and to decline during periods of low interest rates?
Describe the two things that limit the precision of the Fed's control of the money supply and explain how each limits that control. Why do Federal Reserve Board of Governors have long (14 year) terms? Name three actions the Fed can take to increase t..
You are appraising a 480 acre irrigated farm with a current valuation date. Improvements contribute $210,000 to the property value. The property is located outside Lotta-Water Irrigation District; irrigation water is obtained from an on-site well and..
Gomez runs a small pottery firm. He hires one helper at $18,000 per year, pays annual rent of $8,000 for his shop, and spends $24,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) t..
The Mortensen-Pissarides (MP) framework of search labor is the thing in analyzing (equilibrium) unemployment over the business cycle. Shimer showed that the lack of hires is the big margin that affects the volatility of labor. Since then people tried..
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