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Explain some of the reasons why the Heckscher-Ohlin model is difficult to test empirically. Does this mean that it is not a useful model of trade?
If the bidders at a first-price auction have true values of $8, $7, $6, and $5, the item will sell for a. just under $7 b. $8 c. $7 d. just over $7. If the bidders at a second-price auction have true values of $78, $72, $66, and $65, the it..
The moral hazard is the degree of risk that the insurance company is taking in order to provide coverage on the individual.
Over the past 7 years the Federal Reserve has taken many expansionary actions such as keeping interest rates low and buying government bonds and mortgage-backed securities to increase the money supply, hoping to spur buying and investment. Which prob..
If the company requires a minimum return of 25%, illustrate what should be the minimum yrly sales for 12 yrs to justify the investment.
What is the six-month forward price of the stock, assuming interest calculations are on a continuously-compounded basis?
Using dot points, compare the advantages and disadvantages of legacy interVLAN routing and Router-on-a-Stick inter-VLAN routing.
Consider an economy is which taxes, planned investment, government spending on goods and services', and net exports are autonomous, but consumption and planned investment change as the interest rate changes. Compute the value of the marginal propensi..
Consider a market characterized by the following demand and supply conditions: Px=100-5Qx and Px=20+3Qx. The equilibrium price and quantity are, respectively:
What causes movement along AD curve? What causes a shift in the AD curve? What are the factors that affect consumer spending ( C)? What are the factors that affect changes in Investment spending (I)?
The BlackBerry production function is Q = 2.83L1.52K0.82. Epple et al. (2010) estimate that the production function for U.S. housing is q = 1.38L0.144M0.856, where L is land and M is an aggregate of all other mobile, non-land factors, which we call m..
Assume that GDP (Y) in a closed economy is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y – T). Investment (I) is given by the equation I = 2,000 – 100r, where r is the real rate of interest in percent. Taxes (T) are 500 and governme..
analyze the following production data and prepare a proposal suggesting how to maximize profits.
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