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Other things equal, would the formation of a customs union with many members be more likely or less likely to improve welfare for a given member country than the formation of a customs union with only a few members?Why or why not? Other things equal, would the formation of a customs union be more likely or less likely to enhance welfare for a given member country if that country had very high pre-union tariffs than if it had very low pre-union tariffs? Why or why not?
Based on a random sample of 10 values from a normal population with mean μ and standard deviation σ, you calculated that xbar = 10 and the sample standard deviation = 4. Estimate a 95% confidence interval for the population mean. Which probability di..
Imagine that you have a $1,000 CD earning 5% interest (i = .05) indefinitely. a. What is the future value of this CD in 10 years? b. The CD earns $50 interest each year on the $1,000 principal, yet in ten years it will have earned more than $500 inte..
Elucidate briefly in what way the HOV, or factor content theorem, extends the standard HO model.
If the price of good A decreases by 5% and the quantity demanded of good B increases 10.2%, find the cross price elasticity of demand. Are the goods substitutes or complements? Why?
Define the “natural rate of unemployment” and show that its two equations are equivalent. What are its causes and what is its significance for public policy? Define “structural unemployment” and explain its causes. Use a labor market diagram to show ..
The owner/manager of an athletic shoe store has revenue of $260,000 per year and labor, interest, inventory, and miscellaneous expenses of $200,000. The owner also owns the building the store is located in. It would rent out for $5,000 annually. What..
What is meant by the terms bonded warehouse and foreign-trade zone? How does each of these help importers mitigate the effects of domestic import duties?
Indicate the type of sales promotion that a producer might use in each of the following situations and briefly explain your reasons: (1) A firm has developed an improved razor blade, but customers are not motivated to buy it.
We can modify the inter period allocation model to deal with the issue of intergenerational allocation of resources. Suppose a generation is thirty-five, and we are concerned with only two generations. Demand and supply functions for oil in the prese..
Illustrate what will the average total cost be after 1 unit is produced. Elucidate what impact does the dollar appreciation have on the firm's international competitiveness.
Two firms are planning their marketing strategies. Firm K can earn $25 million in profits from strategy S if firm L responds with strategy P, and $7.5 million in profit from S if L responds with strategy Q. Firm K can follow strategy T, which returns..
Weekly inverse demand function is P=296-7Q, weekly inverse supply function is P=17+2Q. Find equilibrium price & quantity & solve for consumer & producers surplus. Then tax of $27 per equanimity is collected by supplier, solve for new consumer and sup..
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