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Problem
Suppose that the free-trade price of a good is $12 and a 10 percent ad valorem tariff is put in place. As a result, domestic production in a small country rises from 2,000 units to 2,300 units and imports fall from 600 units to 200 units. Who are the winners and losers? What is the size of their gains and losses? What is the net effect on society?
Identify and Discuss economics concepts and models that will be suitable for analyzing the news article. Summaries macroeconomic event in the news article chosen and mention what you plan to discuss in this essay.
Calculate the probability of bankruptcy when the nominal interest rate for a risky borrower is 8% and the nominal policy rate of interest is 3%.
What are Sam's explicit costs? Implicit cost? and economic profit in the first year?
It has been said that if government wishes to tax certain goods, it should tax goods that have inelastic rather than elastic demand. What is the rationale for this? Give examples and elaborate your arguments.
Assume that initially equilibrium was 200 units and that this was also full employment level of income
Suppose that the one year U.S. interest rate is 5%. If the one year forward rate against the pound is $1.75 per pound and the spot exchange rate is $1.78 per pound, what must the equivalent British interest rate be if covered interest parity holds?
Calculate NI:Consumption 200 billion Depreciation: 25 billion Retained Earnimgs: 12 billion
To what extent do you think that immigrant families should give up their customs to become part of their host Nation.
Explain profile in terms of networking concept? What is sneakernet?
Prepare a paper that differentiates foreign exchange trading within Asia as compared to Europe and the Americas. Evaluate theses flexible and fixed exchange rate systems within this international context.
Can you identify other products whose trade is discouraged for moral or ethical reasons? Security reasons? What effect will it have on US prices?
In a simple economy assume that all income is either compensation of employees or profits. Suppose also that there are no indirect taxes. Compute gross domestic product from the following set of numbers.
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