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In recent years there have been reports that a group of six Gulf countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates) were considering the introduction of a single currency. Currently, these countries use currencies that are effectively pegged to the U.S. dollar. These countries rely heavily on oil exports to the rest of the world, and political leaders in these countries are concerned about diversifying trade. Based on this information, discuss the OCA criteria for this group of countries. What are the greatest potential benefits? What are the potential costs?
Suppose the own price elasticity of market demand for retail gasoline is -0.7, the Rothschild index is 0.6, and a typical gasoline retailer enjoys sales of $2,100,000 annually. What is the price elasticity of demand for a representative gasoline reta..
Suppose a country makes commodity A and B with capital and labour with constant returns to scale technology. When the country goes from autarky equilibrium to trade equilibrium with its trading partner, the price of A rises and price of B remains sam..
How does this variation affect people and corporations? Use the graph functions of Word or Excel to assist you-You will need two graphs.
Application Coal mining believes that it can increase labour productivity and, therefore, net revenue by reducing air pollution in its mines. Explain how much pollution reduction should Appalachian Coal Mining Undertake.
The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce wid-gets. Each firm has a constant marginal and average cost of producing the good that equals 10. What is the Cournot-Nash equilibrium? You need to solve t..
According to the rule of 70 and 72, a 10% annual increase in real GDP would lead to doubling of real gdp in how many years? According to the future value calculation: an individual and his wife want to retire at 62 on his birthday. Greg just celebrat..
What is economics? Why is economics considered a social science? What role does economics play in your personal and professional lives?
Suppose your employer offered you $4,000 in cash instead of health insurance coverage. Health insurance is excluded from state and federal income taxes (let's ignore Social Security and Medicare wage taxes for now). The cash would be subject to state..
In a Cournot oligopoly, a decrease in a firm's marginal cost leads to. When two firms compete as a Cournot duopoly, the resulting market price is ______________ the price a monopolist with the same market demand and (greater than, smaller than, the s..
Consider an economy that begins with output equal to its natural level. Suppose the economy experiences a negative shock to the banking system. (a) Use the AD-AS and IS-LM models to show the effects of the shock on the AD, AS, IS, and LM curves.
for RussCo to produce its new Game System. Using that cost function for the Game System, determine the profit-maximizing output and price for the RussCo Game System, and discuss its long-run implications, under three alternative scenarios:RussCo Game..
The average consumer income is $20,000, and the price of the related good is $1.10. Compute the predicted quantity demanded of X at these prices and income.
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