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Problem
1. What do you regard as the main weaknesses of the Ricardian/Classical model as an explanation of trade patterns? Why do you regard them as weaknesses?
2. (Requires appendix material) Explain what would happen in the DFS model to relative wages and the pattern of trade if there is a uniform increase in productivity in all industries in the foreign country. What will happen to real income in each of the two countries? Why?
calculate the price elasticity of demand for the following products and state whether demand is price elastic inelastic
What is the marginal product of k? What is the average product of k? In what follows, we assume that population grows at the constant rate n and that capital depreciates at the constant rate δ.
What was the growth rate of the population between 2007 and 2008, round to the nearest percent Calculate real gdp per capita in 2007 and 2008. What was the growth rate of the real gdp capita between 2007 and 2008, round to the nearest percent
For this project, you should work with the monthly time series of the assigned commodity prices, spanning from January of 1995 to December of 2015. Calculate real prices from the obtained nominal prices, using U.S. producer price index as a defla..
Changes in the price of a good or a service causes movement along the demand curve of that good. State four factors that cause shift of the demand curve of goods and services.
If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you? What should you be asking about the forecast?
Use the table that follows to answer this question. Treat the country listed as the home country, and treat the United States as the foreign country.
The marginal cost is graphed below, what is special or interesting about this marginal cost function? Verify the monopolist equilibrium is (Q=20,P=60). What is the perfectly competitive equilibrium? Calculate dead weight loss arising from the mono..
Endogenous vs. Exogenous Money. Explain why the supply of money may be considered an "endogenous" variable, rather than an "exogenous variable." Does the "textbook view" treat money as endogenous or exogenous
Everyone loves to learn about money. There are many interesting questions and issues. What backs our money supply. What role is played by gold. Are credit cards considered money. Should we get rid of the penny.
Elucidate why do you think U.S. investors do not try to capitalize on the high interest rates in Mexico.
Discuss what this suggests about the United States' absolute and comparative advantage when it comes to this good/service.
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