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Brazilian Ethanol Producers (who make ethanol from sugarcane) have lower production costs than U.S. producers. Indeed, even though it costs 16 cents per gallon to transport ethanol from Brazil to the U.S., which also imposes an import tariff of nearly 60 cents per gallon on Brazilian ethanol, the United States still imports millions of gallons of ethanol per year from Brazil. If Congress really cares about protecting the environment and reducing our reliance on foreign crude oil, why do you suppose we have a large import tariff on ethanol?
Draw a production possibilities curve for Mexico and use the two above charts to answer the following questions.
Following are parameters for an open economy open economy where C=10+.8(y-T); I=10 G=10 T=10 and imports and exports are given by IM=.3Y and X=.3Y* respectively where Y is foreign output.
It is conventional to divide the nation's total production into four categories. Name and explain the four categories. In the United States, which category accounts for the largest share and the smallest share of the nation's total production.
You will write a short 350-500-word report on this issue and post it on the discussion board during your assigned week. You should include two discussion questions at the end for your classmates.
Country A is on the PPF. It decides to run a budget deficit of 100 billion. Both its potential and actual GDP is 800 billion. What will happen if country A decides to run this deficit? And why? Give a full explanation for this expected result.
The problem of estimating what goods and services society should produce, Determine the models used in economics
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..
Assume you have the following income distribution data for the residents of Disneyland: Pluto $15,000 Donald Duck $20,000 Ticket Taker $5,000 Minnie Mouse $25,000 Mickey Mouse $35,000. The percentage of Disneyland income held by the lowest quintile..
The interest rate on one-year Canadian government securities is 6 percent and expected inflation rate for the coming year is 2 percent. The U.S. one-year government security instrument interest rate is 4 percent with expected inflation.
U.S. railroads in the 19th century were M- form organizations based on geography. Why might a large railroad be better organized as M-form than U-form
Suppose the U.S. government imposes a quota of 16 million units on its imports of semiconductors. Calculatethe magnitude of the deadweight loss resulting from the quota under the assumption that the U.S. is a small open economy.
Identify and discuss any two modern day events that illustrate interconnections between countries. Be sure to be specific about the events, and clearly explain ways in which such events evidenced the interconnections between countries.
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