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In 2006, U.S. output was $14 trillion and Chinese output was $3 trillion. Suppose that from now on, the output of China grows at an annual rate of 9% per year, while the output of the U.S. grows at an annual rate of 3.5% per year.a. How many years will it take for China to have a level of output equal to that of the U.S.?b. When China catches the U.S. in total output, will residents of China have the same standard of living as the U.S. residents? Explain
How might a government solve the problem of overfishing by assigning property rights over areas of the sea around the local coastline to a single fisherman [hint: he can charge other fishermen a fee to be able to fish in "his" sea] Have property ri..
Why are common borders and cultural similarities often an additional factor to determine who trades most with whom and why? Use your knowledge of the gravity model to justify your answer through two suitable examples.
Suppose that you are able to get a loan from bank for up to $10,000,000 at 7 percent interest yearly. You are to create a portfolio of real estate investments from real estate properties at present listed for sale.
Calculate the ES in autarky and under conditions of free trade. Assume the world price is $45. c) Apply a $2.50 tariff and recalculate economic surplus (including tariff revenue). Has ES gone up with imposition of the tariff d) Evaluate the fo..
One of your relatives advices to you that our nation should stop trading with other nations because imports take away jobs and lower our national well-being.
What would happen to the growth rate of the money supply if foreigners lost confidence in the US dollar as a result of current uncertainty over the crisis of the fiscal cliff in the US economy while the Fed was trying nonetheless to maintain its c..
The Economist reports that the interest rate per year is 5.93 percent in the United States and 70.00 percent in the Turkey,in the October 23, 1999 issue.
Using two supply and demand graphs, one for the market for yuan in the United States, and one for the market for dollars in China, show how China is able to keep its currency at an artificially low exchange rate. First, show the effects of an inc..
International Monetary Fund information indicate that, with 2000 = 100.0, Japan's export value index in 2006 was 95.3, its import price index in 2006 was 127.2,
Argyle is a huge, vertically integrated company that produces sweaters from a rare type of wool manufactured on its sheep farms. Argyle has adopted a approach of selling wool to firms that compete against it in the market for sweaters.
Authorized and available shares Aspin Company charter authorizes issuance of 2,000,000 shares of common stock. Currently, 1,400,000 shares are outstanding and 100,000 shares are being held as treasury stock.
Is it not right to use the total revenue test for elasticity, when there is a direct relationship in price and total revenue the demand is elastic?
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