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1.What factors are important in determining the length of the imitation lag and the length of the demand lag? Explain.
2.Ignoring the mathematics, explain the operation of the Krugman model in economic terms, and indicate the principal lessons of it.
3.Why is an increase in the number of varieties of a good regarded as a gain from trade? Can you think of economic disadvantages associated with greater product variety? Explain.
4.Is the distinction between "intra-industry trade" and "inter industry trade" a useful distinction? Why or why not?
Marginal productivity can be divided into three ranges: Increasing marginal productivity; Diminishing marginal productivity; and Negative marginal productivity.
Describe the maximum and minimum amounts that can be produced
Expalin how does it estimate the demand for new products so that it can prepare a production run. Which is more important for your business: lower cost, quality, customer expectations, or some other feature.
Illustrate what are some advantages of a unionized organization. What are some disadvantages.
Explain what does the transaction of a buyer and seller directly affect a third party. Is the effect a negative or positive externality.
Define and describe the difference between the absolute advantage and the comparative advantage.
Illustrate what kinds of changes in underlying conditions can cause the supply and demand curves to shift
The complete lung-run model for exchange rate determination posits that changes in the nominal interest rate also affect the exchange rate (E). Recall that the complete model combines the QTM, PPP and the Fisher effect. The simple lung-run version..
Assume an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. Illustrtae what is the growth rate of its real GDP.
A profit-maximizing monopolist never produces in the inelastic part of a linear demand curve. The short-run supply curve of a competitive firm is its MC curve.
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Assume you have an industry with 20 firms and the CR is 30 percent. How would I describe this industry?
Suppose you want to produce WIDGETS in your country. The international price of an imported WIDGET is $50 and pays an import tariff of $10 per unit. Three inputs are needed to produce a WIDGET.
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