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Can someone explain the concept of rent seeking as discussed by Tullock. What does rent seeking imply of the costs of a tariff?
Illustrate what is happening to the U.S. real exchange rate in each of the following situations. Explain. The U.S. nominal exchange rate is unchanged, but prices rise faster in the U.S. than abroad.
What are net exports equal to when GDP=$2000, Investment (I)=$200, Consumption (C )=$1200, and Government Services (GS)=$300? If taxes equal $200 and there are no transfer payments, what do savings equal? And if imports equal $160, what do exports ..
Discuss the behavioral issues involved in Merit Inc.'s standard cost dilemma. Evaluate each of the three responses (pros and cons) and recommend a course of action.
Sterling, Inc. is a manufacturer of state-of-the-art computers. For the past ten years, Sterling has acquired all of its microchips from NoBugs Corporation, the only producer of chips meeting Sterling's high specifications. The relationship has been ..
You have just inherited $100,000 from your rich uncle Sam. Being the conservative sort, you rush to your local bank and deposit the entire windfall. The reserve requirement is currently 10 percent. What is the immediate impact on the balance sheet of..
The following are true statements about the income and substitution effect and the optimal consumer's allocation, EXCEPT:
Given the emphasis that society places on freedom of the press and freedom of speech, do you believe that judges should be allowed to issue gag rules
In each case use a diagram in your notes to determine the expected effects on the equilibrium price level (P) and level of real output (Q). For each of the economic structures described in a-j, give the effects on P and Q. (ie + or -). (Assume th..
Present-value question: (a) Consider a 1-year bond yielding $1100 at maturity. Calculate the present value of the bond if the interest rate is 1, 10 and 20 percent. What relationship do you observe between the present value/asset price and the intere..
Imagine you have $20000 and you are willing to invest. A safe investment that promises to pay 5% profit after 1 year. A risky investment that has a 20% chance you might loose half of your money. How much do you expect to get paid for a year in the s..
Over the past year, productivity grew 2%, capital grew 1%, and labor grew 1%. If the shares of income to capital and labor are 0.2 and 0.8, respectively
Price of beer is $2 per unit. Using the following data in the table, calculate MU, MNU and TNU of beer.
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