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What is the term for instruments provided by nature or people that are used to create goods and services?
In the Ricardian model, everyone seems to benefit from trade. However, the Heckscher-Ohlin model seems to show that some lose from trade as well. Who are the losers in the HO model and how do they not benefit from trade
What is the equivalent present value of the following series of payments: $7000 the first year, $6500 the second year, $6000 the third year, $5500 the fourth year, and $5000 the fifth year? The interest rate is 10%, compounded annually. Answer: $2..
Another function of the Federal Reserve System is ensure the stability of our financial system. Some economists estimate that the FED has pumped 20 to 30 Trillion dollars into the system in the last 5 or 6 years in an attempt to prop-up our strug..
How does technological advance enter into the definition of the very long run? Which of the following are examples of technological advance, and which are not: an improved production process; entry of a firm into a profitable purely competitive in..
The annual demand for coffee by the U.S consumers is Q = 250 - 10P. Compute the lost consumer surplus?
Would you assume this as an externality, and if you do, what would you suggest be done about it.
1. a. suppose velocity is stable. what would the federal reserve need to know in order to keep output at its natural
Elucidate whether the following statements are positive or normative economic statements, and explain why you categorized them in that way.
The Boca Raton Company announces that if it reduces its price subsequent to a purchase, the early customer will get a rebate so that he or she will pay no more than those buying after the price reduction. a. If the Boca Raton Company has only o..
What will happen to the price of planes, to sales, and to profits when Airbus comes out with a new plane?
Mr.Fritz wishes to purchase a bond having a face value of $1000 and a bond rate of 8% payable annually. The bond has a remaining life of 12 years. In order to earn 10% rate of return on the investment, what amount should be paid for the bond?
When an inefficient firm or a firm producing a product that people no longer want goes out of business, people are unemployed, but that's part of the normal process of economic growth and development; the unemployment is part of the natural rate
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