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1) Pretend you are a trade economist providing advice to the government of a newly emerging African country. Present (neutrally) both the case for and against a trade policy based on import substitution. You may use specific international (real-world) experiences to support your case for and against such a policy.
2) Is it possible for a country to have, simultaneously, a current account deficit along with a balance of payments surplus? Explain your answer with reference to the significance and meaning of each of the BOP accounts. Be sure to discuss the possible implications for official international reserve flows (i.e. the reserve portion of the financial account).
Suppose output is growing at 3 percent per year and capital's and labor's shares of income are .3 and .7 respectively. If both labor and capital at 1 percent year what would the growth rate of total factor productivity have to be? What if both the la..
Suppose that currency in circulation is $500 billion, the amount of checkable deposits is $1,000 billion, excess reserves are $150 billion, and the required reserve ratio on checkable deposits is 10%. Calculate the money supply, the monetary base, th..
As a professional tennis player, an individual earns $300,000 per year. If employed as a model, the next-best option, this person would earn $120,000 per year. What is this tennis player's economic rent (profit)?
If you were to learn that gatorade introduced new favors in 2010, how should that information affect your calculation to the inflation rate.
Why are trade agreements important for the various countries involved? How is international trade related to the U.S. standard of living as opposed to the standard of living of a small industrial nation or a developing nation
Graphically, the reservation wage is shown by:
Describe "how" producer surplus is measured? What happens to producer surplus when the price of a good rises - all other things equal.
Illustrate what is the source of IKEA's success today. Can you see any weaknesses in the company. What might it do to correct these.
How did the Federal Reserve let the banking system collapse in the 1930's Great Depression? Did The Fed get things right in our 2008 crisis and since then?
Sandy has an income of $300 per month and qualifies for food stamps. The food stamp program awards people $100 per month, but that money can only go towards the purchase of food. Assume food costs $1 per unit. Draw Sandy’s budget constraint with the ..
Is the market for coffee perfectly competitive. Elucidate does the coffee market meet all six conditions of a perfectly competitive market.
Elucidate why haven't the changes to campaign finance laws passed in 2002 been effective in stopping the flow of soft money
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