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Questions: A country is endowed with 15 units of capital, 20 acres of land and 100 laborers. Capital and land are specific to the manufacturing and food sectors, respectively. Let the price of food be fixed at 1, and suppose that, in autarky, the price of manufactures is 2, while in free trade, it is 3.5. The marginal product of labor is given by the following functions:
What is the percentage change in the real income of capital owners in terms of each good, as the country moves from autarky to free trade?
What is the percentage change in the real income of land owners in terms of each good, as the country moves from autarky to free trade?
Two routes are under consideration for a new interstate highway segment. The long route would be 25 kilometers and would have an initial cost of $21 million.
Businesses continually pressure the Federal Reserve to lower nominal interest rates. They argue that this action will lead to beneficial results in the economy.
Suppose that the crop yield of corn farmers in Iowa depends solely on rainfall levels. Also suppose that every part of the state gets approximately.
A firm’s Marginal Revenue curve (in class we called this also Marginal Value) is given by w=1200-2L, where w stands for the wage and L for the quantity of labor. The labor supply curve is given as w=L.
What are automatic fiscal stabilizers? How do these stabilizers stabilize real GDP in the face of AD and AS shocks?
Jiffyland produces nothing but peanut butter
How the brands are alike and how they differ. A preliminary analysis of any gaps that exist in the portfolio that might lead to opportunities to add to the brands.
Workers are compensated by firms with “benefits” in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance
Identify the part of the business cycle that is characterized by: The economy is at full employment. The growth rate of aggregate demand exceeds the growth rate of aggregate supply. Recession. Recovery and non-inflationary growth.
Create two to three PowerPoint slides that provide a solid assessment of the health issue that your group intends to tackle throughout this course.
Identify the stocking rate that you would suggest to a risk averse farmer and explain why you would recommend this stocking rate.
When California voted on legalizing marijuana, which side would you think that California beer distributors were on? What about snack food vendors? Why?
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