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The theory of comparative advantage
Explain unequivocally why the foundation of trade has nothing to do with absolute advantage and only the law of comparative advantage is relevant.
Isn't free trade good for two countries even if one of them has an absolute advantage (in terms of low costs and productivity) in all goods and services produced?
Elucidate how do Keynesian and Real Business Cycle economists differ on the right response to Japanese stagnation.
Assume that the following table describes prices, incomes, and every person lobster consumption in three U.S. cities.
This exercise is an illness which has caused three capable observable things to happen. What are they?
Explain why is a risk analysis so important. In your opinion, which among the factors of the risk analysis carry more weight than others?
Describe the firms optimal advertising-to-sales ratio.
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
Discuss the reason why governments might want to intervene and how they might do- with respect to the following "problem" in the functioning of an otherwise perfectly-competitive ("pareto-efficient") economy:
Illustrate what economic events or changes will "shift" demand and supply curves, and separately "move" demand or supply along their respective curves.
If the government decides to intervene to return the economy to full employment, elucidate what will happen to the economy in the short run and in the long run.
Given the following predictions for nominal wage increases and productivity growth, state your forecast for inflation (assume this is all the information available to make the forecast).
Expalin why might a firm making a large economic profit from its existing product employ a fast-second strategy in relationship to new or improved products.
Draw a graph of the UK labour market that shows the demand for labour, the supply of labour, and the real wage rate in 1973 and 2003. Draw a graph of the UK production function in 1973 and 2003. Make sure your graph shows potential GDP in both year..
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