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What are the current account and the capital account in the balance of payments? For each of the international transactions below, determine whether it is a credit or a debit in the US balance of payments, whether it is a current account or capital account transaction, and whether it increases or decreases the size of the US balance of payments deficit.
Japan buys rice from the United States.
Ford Motor Company builds an automobile plant in Russia.
A German insurance company buys US government bonds.
US residents vacation in Asia.
Suppose that the price of jet fuel used by airlines has increased dramatically. As the CEO of Blue Sky Airlines (BSA), you have been presented with the following options to deal with this problem: Raise airfares to offset cost increases.
Suppose K = 1,000; L = 200 workers; and M = value of all materials use at 450. Derive the total product or output. Find and interpret the output elasticity (or elasticity’s).
State whether the following characteristics represent monopolistic competition, oligopoly, or both.
Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government to become involved to protect consumers?
In relating to page 256 that Sears might deliberately damage its white appliance goods. Then why do you suppose that many doctors happily take on senior patients who pay less per visit than you I and I might pay? Who might come more often to see the ..
Examine two (2) arguments one for and one against raising the minimum wage, and discuss your findings. In view of the weak economy of the last several years, explain which of the four components of GDP had, or is having, the greatest positive impact ..
q1. suppose the parliament passes legislation making it more difficult for firms to fire workers e.g. law requiring
In 1975, President Ford proposed a $28 million cut in government spending and a $28 million tax cut, what is the result of the two actions on the economy? Show you work.
What price-output combination would exist with efficient pricing (MC = P)? Draw a graph with MC, Demand curve and MR curves for the problem above.
Why can re be multiple steady states for a given. What is maximum decit compatible with a steady state.
q1. assume the two rival office supply companies office depot and staples both adopt cost matching policies. if
Assume that a consumer has the utility function U(x,y) = 3x+y, where x and y represent the quantities of two goods, X and Y. The consumer has I=$60 to spend on the two goods, and good Y costs py=$2 per unit. The price of good x, px, is also exogenous..
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