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Suppose foreigners spend $7 billion on American exports in a given year and Americans spend $5 billion on imports from abroad in the same year.
What is the amount of America's net exports?
Popular movements like "buy/shop local" seem to contradict the principle of specialization according to comparative advantage. How does the theory of comparative advantage influence your opinion on these movements and why?
In this problem we will find the labor demand and labor supply for an economy, from there we will determine the equilibrium quantity of labor, and by plugging that into the production function we will find GDP. Now that you have the Labor Demand and ..
Economic laws studied in this unit tell us that as the price of some good rises
The result will be that American wage levels will plunge downward until they equal the wage levels in China and other poorer countries.
Suppose Mary has an income of $80 to buy bags and belts. The price of a belt (good 1) is $10 and the price of a bag (good 2) is $20. Martha, Mary’s sister, also buys belts and bags. Her consumption behavior is such that she can buy two belts (good 1)..
Calculate the market price and market output at the LRCE. Calculate the number of firms at the LRCE.
This effects of currency crises in other nations are not limited to those nations; they can affect our economy and our lives in important ways.
What are the two terms that go into the standard-form categorical claim? Each standard form of categorical logic has its own graphic illustration known by what name? What circumstances are necessary for two claims to be equivalent? Logical relationsh..
In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Shou..
Assume that the demand for gasoline is inelastic and supply is relatively elastic. The government imposes a sales tax on gasoline. The tax revenue is used to fund research into clean fuel alternatives to gasoline, which will improve the air we all br..
Suppose the demand curve is given by Q = 200 - 20P. Answer the following. (a) What is the price elasticity at P = $4? Is demand elastic or inelastic at this point? (b) What is the price elasticity at P = $7? Is demand elastic or inelastic at this poi..
Would a dynamic approach to taxation be more likely to lead to economic growth than the static approach in a country with a falling tax base? What about in a country with a growing tax base?
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