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“In a situation of increasing opportunity costs, trade can be beneficial to both countries if they have identical tastes. However, trade cannot be beneficial to either country if the countries have identical PPFs” Is this statement correct of incorrect? Illustrate and explain
A group opposed to free trade concludes that the total number of domestic jobs will decrease because it estimates that 20,000 jobs will migrate abroad. The actual total loss is:
Given the technology and the amount of other resources available, the position of the demand for labor depends on the
When an individual or firm in the United States requests that a bank sell foreign exchange, the bank will probably call a foreign bank and arrange a purchase. call the central bank and arrange a purchase. call another bank customer with foreign excha..
Industry-land was so named because it is highly industrialized. It is a world leader in production of manufactured goods. If industry-land put all its productive efforts into manufactured goods, it could produce 1,000 units per year. Draw a produc..
The market where business sell goods and services to households and the government is called the
In a market economy, every resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices.
An expansionary monetary policy is less likely to be effective if: Assume we have the following economic data: Unemployment rate = 8% Inflation rate = 2% Annual labor force growth rate = 1% Annual increase in worker productivity = 1% Using the above ..
Briefly define the following terms. Tariff escalation, Optimal tariff rate, Ad valorem tariff equivalent, Voluntary export restraint (VER), Terms of trade effect (of subsidy), Harmonized System (HS) of commodity Classification, Common external tariff..
Consider the following situation regarding the trading partners Hong Kong, Japan, and the United States: Hong Kong’s currency is pegged to the U.S. dollar; the Japanese currency (the yen) appreciates relative to the U.S. dollar. How would Hong Kong e..
Illustrate what does the difference in the relative black-white wage ratios across regions indicate that Southern employers discriminated more than Northern employers.
q1. the third largest city of a country has a population of 12.5 million. using the ranksize rule what is the
Calculate the cross elasticity of Lorena's demand for golf at all two prices. Are movies and golf substitutes, complements or independent goods?
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