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Use your knowledge about trade policy to evaluate each of the following statements:
a. "An excellent way to reduce unemployment is to enact tariffs on imported goods."
b. "Tariffs have a more negative effect on welfare in large countries than in small countries."
c. "Automobile manufacturing jobs are heading to Mexico because wages are so much lower there than they are in the United States. As a result, we should imple- ment tariffs on automobiles equal to the difference between U.S. and Mexican wage rates."
A polluting firm's marginal benefit of releasing pollution is MB g = 100-2⋅g, where g is tons of air pollution released into the atmosphere and MBg is its marginal benefit from releasing pollution, in dollars per ton. The marginal external costs of ..
designed to develop a portfolio of resources
You are the owner of a family-owned restaurant. You do not pay yourself a salary or an hourly wage. How and why does this practice affect the economic cost of serving your patrons?
imagine that you work for the maker of a leading brand of low-calorie microwavable food that estimates the following
Explain the relationship among household disposable income, consumption, and savings. What is Marginal Propensity to Consume (MPC) and what does an MPC of 0.9 tell us about consumption and saving?
The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. And its d..
Federal Funds Rate in order to achieve macroeconomic objectives.
given equationtc18q3-1.5q211.5qp37-0.01qdemandp10.01qsupplyquestions1. what would be the long run price and quantity
suppose that it costs microsoft 100to develop a new version of microsoft office and that it costs microsoft 20 to
Suppose the alternative, that the open market desk does nothing different, that is, they hold the amount of reserves constant. What happens in the reserve market? What is the market clearing fed funds rate now? Label this development, that is, ..
Explain the key features of each of the three generations of currency crisis models. Which of the three models best describes each of the financial crises discussed in this chapter? (book international finance and open-economy Macro economics by Hend..
Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..
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