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a) What are the Marshall’s Rules of Derived Demand for labor?
b) The North American Free Trade Agreement (NAFTA) – which came into force on January 1, 1994 – created a trilateral trade bloc between the United States, Canada and Mexico. One result of the agreement was the elimination of U.S. tariffs on textile imports from Mexico. How would the elasticity of demand for labor in the U.S. textile industry been affected by this? Explain using relevant Marshall’s Rules.
c) The U.S. Environmental Protection Agency (EPA) announced that greenhouse gases (GHGs) threaten the public health and welfare of the American people, as they are the primary driver of climate change. As a result, the EPA plans to set limits on allowable carbon dioxide (CO2) emissions and require the installation of pollution abatement technology (i.e., machine) in plants emitting CO2. Since fossil fuel industries (oil and coal) are among the biggest sources of CO2 emissions, how might these new regulations affect the elasticity of the labor demand in these industries? Explain using relevant Marshall’s Rules.
List out at least one policy action that the Federal Reserve has taken to confirm that direction. Explain the effects of monetary policies on the economy's production and employment.
What are the four dimensions of culture studied by Geert Hofstede? Identify and describe each. What is the cultural profile of the United States? Of Asian countries? Of Latin American Countries?
Suppose demand conditions in industries X and Y are identical but that productivity increases by 5% in industry X and 2% in industry Y. If economy-wide productivity and the average wage each rise by 3%, we should expect that:
Write down the consumer budget constraints when young also when old the consumer lifetime budget constraint the government budget constraint also the market clearing conditions.
Sue, of Sue's Sandwiches, sells sandwiches and soda from a sidewalk cart in a popular park near her home. She sets up her rented cart in the summers to raise money for college. Last month she sold $3,000 worth of product (sandwiches and sodas) to 300..
Income tax Let’s now consider the case where government collects an income tax (is just tax on income, and does not depend consumed quantity) instead of quantity tax, and raises the same amount of revenue. Calculate own price elasticity of demand for..
Pepsi uses advertising to create the impression that Pepsi is superior to any other soft drink. Pepsi is attempting to:
Over the past 30 years, health care expenditure in the U.S. grew at an average rate of 3.7% per year plus the rate of inflation, while expenditure on all other goods grew only 1% per year plus the rate of inflation. What seem to be the main reasons w..
Assume that the marginal cost of providing lockers is zero as well as the monthly demand as well as for lockers is estimated to be best described.
What is allocative efficiency using the benchmark model?
Identify whether the Fed should continue its current pace of security purchases, and indicate what “forward guidance” the Fed should issue now and why? Be specific in answering the question. Forward guidance is the specific language the Fed uses to i..
Calculate the CRF for an incremental tax of 40%, a depreciation life of 20 years, a depreciation schedule that is straight line over the same 20 years and a 15% after tax rate of return.
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