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Scenario 20.2 Suppose labor productivity differences are the only determinants of comparative advantage, and both Egypt and Ghana produce only corn and cocoa. In Egypt, 10 bushels of corn or 15 pounds of cocoa can be produced in a day. In Ghana, one day of labor can be used to produce either 2 bushels of corn or 8 pounds of cocoa. Refer to Scenario 20.2. Egypt will be willing to trade corn for cocoa if in the international market 1 bushel of corn can be exchanged for: a. more than 1.5 pounds but less than 4 pounds of cocoa. b. less than two-third of a pound of cocoa. c. less than 1 pound of cocoa. d. more than half a pound but less than 1.25 pounds of cocoa. e. more than 1 pound but less than 2.5 pounds of cocoa.
An engineering student bought a car at a local used lot. Including tax and insurance, the total price was $3000. He is to pay for the car in 12 equal monthly payments, beginning with the first payment immediately.
Assume a firm has production technology given by f(L,K) = L^1/3 K^1/3. Assume pK = 1 = pL and compute the firm’s short-run and long-run cost functions. Assume a firm has production technology given by.
Show that the balance sheet balances if these are the only assets and liabilities.
A sample that does not over represent any portion of the population also whose responses can therefore be safely generalized
Suppose the market for cantaloupes is unregulated. That is, cantaloupe prices are free to adjust based on the forces of supply and demand. If a shortage exists in the cantaloupe market, then the current price must be (higher or lower)?
If the required reserve ratio were .25, then a $8 million increase in H ("high-powered money") from the Fed could lead to an increase in the money supply by as much as $____ million.
A nation suffering from high unemployment would welcome: A: currency appreciation B. A wave of foreign investment C. currency depreciation D. effects of less expensive exports
q1. the wall street journal once stated regarding fannie mae and freddie mac that their profit is privatized but their
What is the approximate YTM on a 12-year semiannual coupon bond with a $1,000 par value and an annual coupon rate of 6% that is selling for $950? What type of bond is this? Without doing any calculations, can you rule out a range of yields? What is t..
q1. law of diminishing marginal utility some restaurants offer all you can eat meals. explain how is this practice
As a postgraduate student of economics I've been trying to expand my mathematical "toolset". While doing so I've talked to engineers, physicists and mathematicians, many of which have disdained the use of mathematics in economics. Their arguments var..
George purchased a $10,000 bond that pays a nominal interest rate of 8 percent per year. George's marginal income tax rate is 28 percent. Over the last year, inflation was 3 percent. Find George's before-tax real interest rate and his after-tax real ..
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