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Explain clearly and with a graph the basic model of a customs union between the US and Mexico. Is such an arrangement always beneficial or are there conditions under which it is not. Explain
“But in real-life America, and especially in the America of railroad men and new industrialists, laissez-faire was a dangerous idea” Explain. The giant modern corporation did more than transform business into finance. It displaced classical ideas abo..
Assume that a nation’s marginal propensity to consume is 0.9, and that its potential GDP exceeds its actual real GDP by $5000. By how much should that nations government change taxes in order to completely close that GDP gap?
Find the present-value equivalent to the following geometrically increasing series of payments.
Customers arrive at a movie theater at the advertised movie time only to find that they have to sit through several previews and prepreview ads before the movie starts. Many complain that the time devoted to previews is too long (The Wall Street Jour..
What would happen to the size of the cattle population if Americans decided to eat substantially less beef? Explain the logic underlying your answer. Does private ownership entitle the owners to do anything they want with their property? Why or why n..
There are a number of measures of aggregate economic activity, such as GDP, GNP, national income, personal income, and disposable personal income. Each of these measures can be a good indicator depending on the issue under consideration.
An excise tax of $2.00 per pound of sugar placed on the suppliers of sugar would shift the supply curve:
Based on discussions surrounding the controversy over the value of the Chinese yuan in foreign currency markets, is China still using central bank foreign exchange policy to maintain the value of the yuan?
Give examples of goods or services you buy in which your preferences are well described by “love of variety” and some examples where your preferences are well described by “ideal varieties” Contrast the assumptions about firms within an industry: the..
Assuming that wages in an alternative location are expected to always be higher than wages in the current location, an increase in the interest rate is expected to cause the net benefit associated with mobility to:
Compute the minimum rate of interest, and, therefore, the risk premium, at which you would lend $1000 on the informal market. Suppose you are risk-neutral.
How are prices determined under perfect competition? Think about a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald's is a firm in the fast food industry. What market structure would this i..
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