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Countries A and B have two factors of production, capital and labour, with which they produce two goods, X and Y. Technology is the same in both countries. X is capital intensive; A is capital abundant. Analyze the effects on the terms of trade and the welfare of the two countries. Use diagrams in your analysis. (a) An increase in B’s capital stock. (b) An increase in B’s labour supply.
The interest rate generally considered to be the best indicator of day-to-day money market conditions and the one most directly monitored/targeted by the Fed is:
Complete the labor demand table below for a firm that hires labor and sells its product in competitive markets.
Negotiable instruments are transferred every business day of the year. Make a checklist for the potential buyer or holder of a negotiable instrument. Remember they are going to give something of value in return for this document and they don't want t..
Suppose the prospective buyers of houses become more optimistic about the future prices of houses while at the same time existing owners of houses become more pessimistic about the future prices of housing. Explain what you think will happen to the c..
If the Federal Reserve increases the money supply, the rate of return on investment (increases/decreases) and the value of the domestic currency (increases/decreases)
Suppose a consumer spends her income on lobster and frozen pizza. Assume that the consumer has an income of $600, the price of lobster is $50, and the price of frozen pizza is $6. Using indifference curves and budget constraints show the income and s..
What term best describes the payment which must be offered to a risk-averse individual to willingly accept a gamble?
Swagelok Co. of Solon, Ohio, makes variable area flow meters (VAFs) that measure liquid and gas flow rates by means of a tapered tube and float. If tooling and setup costs were $400,000 in year 0 and an additional $190,000 in year 3, determine the ex..
xplain at least one possible economical detriment of (problem with) the current law. You may add any other detriments, but you must provide at least an economic one). Note: Retailers being able to pass on wholesale price increases is not considered d..
The economist Bryan caplan recently found a pair of $10 arch supports that saved him from major foot surgery. He stated he would have been willing to pay $100,000 to fix his foot problemm, but instead he paid only a few dollars. How much consumer sur..
q.1. suppose the demand for a product is given by p 30 - 3q. also the supply is given by p 10 q. if a 4 per-unit
Explain how consumer surplus changes when a monopoly price discriminates. Explain how consumer surplus, economic profit, and output change when a monopoly perfectly discriminates.
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