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Question: Suppose that houses are made of aluminum and bricks. Assume that in each country the price of a house is equal to its cost of production (average of the price of bricks and aluminum). Assume aluminum is tradable and bricks are not. Defne the real exchange rate as the relative price of houses in Europe versus Canada. Suppose the real exchange rate increases, and the price of bricks relative to aluminum does not change in Europe. According to the Balassa-Samuelson theory, will the price of houses in Canada rise or fall relative to the price of houses in Europe? What do you think the relative price of bricks relative to aluminum in Canada?
The government is considering a policy to reduce air pollution by restricting the use of "dirty" fuels by factories. In deciding whether to implement the policy, how, if at all, should the likely effects of the policy on real GDP be taken into acc..
The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the assumption that the company's many divisions will rem..
Assuming that labor is the only variable input in the short run, draw a typically shaped marginal product cuve for labor. Explain why the curve looks like this. Identify the point where the law of Diminishing returns sets in.
Purdue’s 20 year net Return on the Investment is $591,700 and the total 4 year cost is $91,300. What is the gross return on the investment?
What efforts have been made and by whom to promote alternative crops to peasants in Central and South America?
Discussion: Endogenous Verses Exogenous Growth Theories. Analyze the impact of government policy on the long-term growth rate of an economy.
select a topic from the following list and conduct research on the topic to locate scholarly sources from the ashford
The Demand schedule (or curve) specifies the relationship between prices and quantity demanded (holding constant the influence of all other factors) Take an example of one grocery item that you frequently buy from the grocery store and show how any c..
Suppose the cross-price elasticity of demand between goods X and Y is -5. How much would the price of good Y have to change in order to increase the consumption of good X by 50 percent?
The Swiss pharmaceutical global corporation Hoffman-La Roche has made a major breakthrough in the relief of a serious disabling disease that affects 3 percent of the world's population. Its new product Tigason is the first product that effectively..
Consider two identical countries in our standard overlapping generations model. In each country, the population of every generation is 100.
A single-price monopolist whose marginal costs are zero receives a government subsidy of $1 for every unit of output it produces.
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