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Question: Suppose we have a Heckscher-Ohlin-Samuelson model with two countries, two goods, and capital and labour. No government is taxing or transferring income or goods across households within their country. Answer True, False, or Uncertain to each statement below. Briefly justify your answers in a few sentences. (A) When the two countries open for trade, workers in the relatively labour abundant country will definitely gain from trade. (B) Without more information, we cannot determine if each country experiences aggregate gains from trade -- it depends on the size of the gains to the households that gain from trade relative to the size of the losses to the households that lose from trade.
Determine what fiscal policy measure has a more direct impact to the economy. Is it an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month?
If the AD curve were more steeply sloped, how would the economy respond differently to aggregate demand shocks (shocks to )?
problemsa. compare and contrast the following types of economic evaluation and provide an example of each a cost of
Use the Black-Scholes option pricing formula to calculate the call option price after four months. Use s= ln u/sqrt(?t) with u is the up-factor.
Gas Prices Create Land Rush There is a land rush going on across Pennsylvania, but buyers aren't interested in the land itself. Buyers are interested.
Assuming a constant marginal cost, a lower price elasticity of demand would call for a relatively lower mark-up ration. Mark-up pricing might be more suitable for monopolies. Relatively high transportation costs make it easier for a firm to achieve a..
Draw a graph of Kim's PPF and Liam's PPF and show the point at which each produces when they spend 30 minutes of each hour producing pies and 30 minutes.
being bought up by rivals at the behest of the FDIC. How does all of this affect market power and consumers? How does this end
An investor in Maryland is offered two investment opportunities. Project A is to invest in a small printing operation consisting of a high-speed printing press.
A noncompetitive firm with the total cost function TC = 0.4Q3- 7.5Q2+ 85Q + 300 has the following demand function for its product P = 350 - 5Q - What is the firm's profit maximizing price and output combination?
hyundai motor company hmc went through some difficulties during the 1980s and 1990s that affected its market position
Compare and Contrast International Healthcare Systems and How are the systems different? What are the major differences for patients
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