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Suppose that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition. Assuming that the United States is a price taker in the world auto market, show on a diagram: the change in the quantity of imports, the loss to U.S. consumers,the gain to U.S. manufacturers, government revenue, and the deadweight loss associated with the tariff. The loss to consumers can be decomposed into three pieces: a transfer to domestic producers, a transfer to the government, and a deadweight loss. Use your diagram to identify these three pieces.
In a typical day the store sells some of each type of cola, which suggests that Major League Baseball has adopted FOA because it fears that regular binding arbitration is addictive.
Illustrate what do economists mean when they say that private goods tend to be produced in the right amounts.
In what conditions will an increase in the price of a product lead to a reduction in total spending for that production.
Hero Nakamura is CEO of the Cola King Bottling Company a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
If each economy specialized in its comparative advantage, what range of prices would bacon trade at in terms of eggs.
The law of diminishing returns applies to which of the subsequent segments of the marginal product of labour curve.
What would the supply of labor curve which look like over this range of wages.
Evaluate Rusal's prediction by using the demand and supply equations to make a prediction about the movement of world aluminum price.
Illustrate what is the minimum product price at which the firm will operate in the short-run. Elucidate how many workers should the firm employ to maximize profits.
Characteristics of Proprietorships what percentage of sole proprietorships is engaged in retail trade? Why might more sole proprietorships be engaged in services rather than manufacturing?
At the profit-maximizing quantity, what is the average total cost of producing e-books.
Explain how does the market system efficiently perform the functions of communication, coordination and motivation in the distribution of resouces to comsumers.
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