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Explain the difference between absolute advantage and comparative advantage. Why is international trade theory based on the latter? Be sure to contrast trade theory with the earlier Mercantilist period. What was the shortcoming in Ricardo’s early trade theory and how did John Stuart Mill resolve this problem
The cost measure sellers use to determine whether or not to produce the optimal (i.e. profit maximizing) level of output is:
What do you understand Spencer and Kate are the only two demanders of lemonade.
The labor supply function is given by N=1000+12w and labor demand is N=2000-8w. Find the equilibrium level of employment and wage. Given existing technology and the capital stock, output is given by the function Y=100N. Does the function exhibit dimi..
Calculating inflation using a simple price index-Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply.
If a company, new to international arena, is negotiating an agreement with a potential partner in an overseas country, what basic steps should it be prepared to implement.
Suppose that an excise tale of $1 is placed on sellers in a market for widgets. Using diagrams indicate whether none, some, or all of the tax is passed on to the consumer in the form of a higher price for each case described below. Demand curve is ho..
q1. the city council realizes that the telephone company could curtail pay phone service in response to the ceiling. to
Demand Pull Inflation: Suppose that the central bank wants to increase output, but the economy is already at the natural rate. Show the short and long run effects of a monetary expansion in this situation in the AD/AS model. You can omit the labor ma..
Discuss contributions of competing and dominant school of thought to evolution of labour economics; mention paradigm differences and distinctions between old labour economics and new labour economics.
Which of the following statements about oligopolies is not correct? Which is true of an oligopoly market that reaches Nash equilibrium? Which of the following situations produces the largest profits for oligopolists?
You continue to use an old machine tool that was bought four years ago for $15,000. It has been fully depreciated but can be sold today for $2,000. The existing (old) machine tool can be sold today for $2,000. You purchase a brand new machine tool at..
The long-run market supply curve in a competitive market will
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