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1. You are given the following information:
(a) What is the nominal rate of protection? ($500)
(b) What is the effective rate of protection? ($500)
Now along with a tariff on imported computers of 20%, suppose that a 30% tariff is placed on the imported components used to make computers.
(c) What is the new nominal rate of protection? ($500)
(d) What is the new effective rate of protection? ($500)
Consider each of the following scenarios and determine whether it is an example of the income effect, the substitution effect, or diminishing marginal utility. Sasha likes to treat herself to a small latte each afternoon. On Wednesdays, when the coff..
"The rapidly growing East Asian economics used very different combinations of policies, from hands-off to highly interventionist. Thus there is no single East Asian model of development.
A new piece of machinery, when placed in service is estimated to cost $225,000. It is expected to produce revenue of $75,000 and operating and maintenance expenses are expected to be $9,000 per year. The useful life of the equipment is 5 years and it..
Discuss very shortly the choice of discount rate to use to evaluate a public project with a very long time horizon (e.g. nuclear waste final storage). Explain (shortly) how mandated benefits might affect how you think about the deadweight loss of tax..
For years, fast, friendly, personal service has been the hallmark of successful businesses. But as an increasing number of businesses (and even entire industries) have invested in self-service technology, Understanding that the specifics of every bus..
Damsung Company assembles television sets. The demand curve for its TV sets is given by P = 3,000 - 10Q, where Q is the number of TV sets sold and P is the price. Solve Damsung Company's problem: what is the firm's profit maximizing retail price and ..
For this final question, assume what we have been assuming for the last two questions EXCEPT NOW assume that the economy is NOT at full employment, but that actual GDP is 2% below potential GDP. Under these conditions, if the money supply were to gro..
Assume you have an asset which will pay 5,000 dollars at the end of each year forever. Then, if the interest rate is 5% per year, the value of the asset is
Biff owns and operates a golf driving range on land that he also owns. Last year his accountant calculated that his driving range makes $50,000 profits per year. Last year a property management company offered to lease Biff’s land from him for $80,00..
Grocery stores and gas stations in a large city would appear to be examples of competitive markets. There are numerous, relatively small sellers, each seller is a price taker and the products are quite similar. Is is possible these markets are perfec..
Assume an economy with no government or foreign trade and the following equations, Based on this data C=150 + .9DI, I=250, Show what would happen in the first five rounds following an increase in investment spending from 400 to 800.0. What would be t..
What is the MULTIPLIER effect? How does it work? remember that we’re talking about the spending multiplier here, not the money multiplier that operates on the money and banking side of the economy)
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