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Why do U.S. companies and workers within particular industries that are harmed by trade tend to have more political influence than the consumers who benefit from this trade? Do U.S. consumers have a good understanding of how they benefit from trade? Are they a cohesive political lobby?
ANS: Companies and workers may be better organized and consequently have greater political influence. Consumers are a diffuse group, with poor understanding of the gains from trade.
An economy has $90 to divide between Katherina and Bianca. Katherina’s utility function is. Which allocations of $90 are exchange efficient? Calculate the allocation that maximizes utilitarian welfare. Calculate the allocation that maximizes Rawlsian..
Explain demand schedule and demand curve, and how they are related? Why does the demand curve slope downward?
Few years ago, Delta Airlines and Northwest Airlines merged together and created the largest airlines in the world. The logic was to be more efficient and improve profitability. Briefly explain how the merger can possibly lead to cost savings and pro..
Why is this the case? That is, show why the variance of the error term in the LPM will necessarily be non-constant.
By law the Federal Reserve is required to monitor unemployment and inflation. How does the Federal Reserve accomplish these goals?
Which of the following are likely to increase the value of the firm, based on the shareholders wealth-maximization model?
Plot the current U.S. Treasury Yield Curve and interpret its shape using a. The Pure Expectations Theory b. The Market Segmentation Theory
Jane lives in a dormitory that offers soft drinks and chips for sale in vending machines. Her marginal utility for soft drinks (Good X) is equal to 3Yand her marginal utility of chips (Good Y) is equal to 3X. MUx = 3Y MUY = 3X Soft drinks are priced ..
If the horizontal axis measures the quantity of bank reserves and the vertical axis measures the interest? rate, the demand curve for bank reserves? ________. Which of the following is likely to happen due to quantitative easing by the? Fed? Which of..
a. Does either firm have a dominant strategy? b. What is the Nash equilibrium (if any)?
Prove the following: if a matching is efficient, then there exists a tie-breaking rule such that the matching is efficient (with respect to the strict preferences generated by the tie-breaking rule)
Bob and Dexter share a dorm room. Bob is a chain smoker but Dexter does not smoke. There are no laws that forbid smoking in the dorm rooms.
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