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Q. If Farmia opens trade with a country with identical tastes, what will happen in short run to: a) Farmia's production of wheat and coffee? What information or theorem did you use as basis for you answer? B) Price of wheat and coffee in Farmia? How do you know? C) Wages in Farmia? How do you know? D) Price of wheat land in Farmia? How do you know? E) price of coffee land in Farmia? How do you know? F) Welfare or purchasing power of workers, owners of wheat land and owners of coffee land in Farmia? How do you know?
Write down the budget constraints when young also when old also the lifetime budget constraint for both types of consumers.
Assume that the marketplace for engagement rings is in equilibrium.
If your employees are self-interested, how much output would you expect each individual worker to produce absent monitoring.
AMS recently instituted an in-house recycling program. Profits of this program include not only profits to environment of recycling. Illustrate what level of Q maximizes profit of recycling.
Call P the unit price of each stamp and find out how many stamps and how many photocopies the firms purchase depending on the value of P.
The marginal revenue received by a firm in a perfectly competitive marketplace is illustrating what
Illustrate what do you think would occur when there is little or no competition is a marketplace
Before output has had time to adjust, by how much is disposable income reduced. Compute the resulting change in consumption expenditure.
Elucidate why labour force participation rate for two groups might differ. Why might human capital choices differ between selected groups.
Illustrate what factors may influence a household when deciding between buying stocks, bonds, or a house.
For each values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease.
Discuss the new equilibrium price also quantity which result from these changes. Can you exhibit some of these changes graphically.
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