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What is the law of comparative advantage? How do you use it to support free trade in the world? What international institutions were created and how have they worked to liberalize international trade? What developments in the past decade or so have indicated that trade liberalization is constantly being threatened by protectionism? In particular, how has the U.S.—a strong advocate for free trade for a long time—modified its policy and behavior on trade
A New York Times editorialist recently advocated a cut in the payroll tax.
The ________ suggests that when real GDP equals potential GDP, quantity of money increases and brings equal percentage in the price level. Velocity of circulation, equation of exchange or quantity theory of money
Inflation during the 1970s was much higher than most people had expected when the decade began. How did this affect home-owners who obtained fixed-rate mortgages during the 1960's? How did it affect the banks that lent the money?
An individual likes owning cars is better. In order to own a car, an individual must have a 1:4 ratio of frames to tires.
Ann owns a lawn mowing company. She has 240 lawns she needs to cut each week. Her weekly revenue from these 240 lawns is $8,400. If given an 18-inch deck push mower, a laborer can cut each lawn in two hours. If given a 60-inch deck riding mower, a la..
Government spending can raise Aggregate Demand and real GDP in the Classical model. Classical economists said that the velocity of money is very volatile. Classical Economists claim interest rates guarantee that savings will equal investment.
Elucidate what does either player have a dominant strategy. Explain is there Nash equilibrium in this game.
Suppose that demand for rollerblades is given by D(p) = A ? p. The cost function for all firms is C(y) = wy2 + f , where f is a fixed set-up cost. The marginal cost of production is MC(y) = 2wy. Assume that the industry is perfectly competitive. Find..
Our recent recession seems to demonstrate again that expenditures and incomes depend on each other. If markets do not self adjust, how can a decline in spending lead to a negative process that ruins an economy? (Consider referencing the "Keynesian Cr..
The characteristic that distinguishes a perfectly competitive market from a monopolistically competitive market is. Which of the following statements concerning market structure is not true?
Suppose the owner bears a monitoring cost of m, which is subtracted from income, so that the owners utility is U (x^beta, y^beta-m). mLet the monitoring cost person be a function m(n) of the number n of team members, with m increasing as n increase. ..
Why was the Teamsters Union so opposed to allowing Mexican truckers to deliver their goods in the United States.
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