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What is an absolute advantage? What is a comparative advantage?
Give an example where you have an absolute but not a comparative advantage.
Why should we specialize and trade?
Changes in the quantity of money lead to real changes in the economy. If this is the case, why would the central bank ever stop increasing the money supply?
Bob borrows $52000 from a local bank at an APR of 7.2% compounded monthly. His monthly patents are $52000(A/P, 0.6%, 54) = $1128 for a 54 month loan. If Jim makes an extra payment on the first month of each year, his repayment duration for the loan w..
Thomas works in a non-military operation of a large operation that does both non-military and military goods. This company discontinued the production of non-military goods and transferred Thomas to a plant that produced military goods. He was denied..
Neal Rubin, while driving his car in Chicago, inadvertently blocked the path of a Yellow Cab Co. taxi driven by Robert Ball, causing the taxi to swerve and hit Rubin’s car. Angered by Rubin’s driving, Ball got out of his cab and hit Rubin on the head..
find the country with largest budget deficit and largest budget surplus in this list the budget deficit is called the Budget Balance.
The economy is hit with a positive SRAS shock and you, in your role as a central banker, respond with an active policy response to stabilize inflation. (a) Draw an AS/AD diagram illustrating the changes in output and inflation. (b) Describe briefly h..
Raisin bran and milk are complementary goods. A decrease in the price of raisins will:
Suppose that this year the money supply is $500 billion, nominal GDP is $10 trillion, and Real GDP is $5trillion. All underlying work must be shown to receive full credit. What is the price level this year? What will happen to nominal GDP and the pri..
Suppose the cross-price elasticity of demand between goods X and Y is 2. How much would the price of good Y have to change in order to change the consumption of good X by 50 percent?
If the exchange rate rises, domestic goods become relatively ______ expensive. This change in the affordability of domestic goods makes domestic goods _____ attractive to foreigners. So, _______ ______. (choose - more,/less, imports/exports, fall/ris..
Firms that can identify two types of consumers can price-discriminate perfectly. Firms can price-discriminate only if there is zero competition in the market. Firms that price-discriminate will not reach higher profits.
Choose whether to hire a new person in the marketing department or upgrade your computer system.
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