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Working conditions in developing countries are often considerably worse than working conditions in developed countries. If working conditions are analogous to fringe benefits, would requiring companies in developing countries to substantially improve working conditions necessarily increase the well-being of their workers? How might the improved working conditions affect wages? Might workers in low-income countries have a different trade-off between wages and working conditions than workers in affluent countries?
ceteris paribus that is all other things equal or assuming no changes to performance in future years and no change in
The buyer wants to have an interest rate profit of 8% compounded semiannually
Discuss the following.With perfect capital mobility and floating exchange rates, fiscal policy is more ef-fective if the country is more open because of the effect of imported goods on the LM curve.
Consider the utility-maximizing model in a two-good world, where our representative consumer has well-behaved preferences that result in smooth indifference curves that are convex to the origin. Place good one on the horizontal axis.
Suppose buyers hold different private values for the item. Show that each player's dominant strategy is to bid his or her true value in this sealed bid auction.
Derive the aggregate supply curve (that is, the relation between the price level and the level of output, given the markup, the actual and expected levels of productivity, the labor force, and the expected price level). Explain the role of each va..
Explain why you have categorized these selected principles or concepts as microeconomics or macroeconomics.
In the aggregate expenditures model, if aggregate expenditures exceed real GDP, the economy will:
Presume real output is 12,500, and the demand for real money balances is Md/P = Y/4 - 125i. If the equilibrium interest rate is 7 %, compute the money supply. If the central bank sets the interest rate at 8 % what is the new money supply?
The perfectly competitive company takes the equilibrium value set through the market and maximizes profit through manufacturing where price, which also equals marginal revenue, is equal to marginal cost.
How much the owner of a building would be justified in paying for a sprinkler system that will save $750 a year in insurance premiums if the system has to be replaced every 20 years and has a salvage value equal to 10% of its initial cost? Assume ..
The rule for maximizing net revenue
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