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Question Eleven: International trade and trading blocks
What is fallacious about the following two arguments? Is there any truth in either?
(a) 'Imports should be reduced because money is going abroad which would be better spent at home.'
(b) 'We should protect our industries from being undercut by imports produced using cheap labour.'
The marginal utility of a pizza is 20 utils, and its price is $2. If you buy one unit of each good, will you achieve consumer equilibrium? If not, how can greater total utility be obtained?
1. Characterize this function by circling all in the following list that are applicable:
Manuel%u2019s uses a 4-year planning horizon and a 10 percent per year MARR. Based on an internal rate of return analysis, which ERP system should Manuel purchase?
Mary is in equilibrium. The MUa =6, MUb =12, Pa=2, what is the price of b? Zach is in equilibrium. The MUa=2, MUb=8, what is the price of a in terms of the price of b? What is the utility maximizing or optimization condition?
Graphs are normally two dimensional in their use of an x and y axis. What advantages do multi-dimensional graphs have in terms of using three dimensional representations (x, y and z graphs or even additional axis representations) and do these present..
The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Advocates of active stabilization beli..
An airport is located on a tract of land owned by a housing developer. The developer would like to build houses but noise from the airport reduces the value of the land. The airport’s total profits are ΠA(x) = 48x − x^2 where x is the number of airpo..
The state of Minnesota is considering building a highway through undeveloped wilderness. The construction will take 1 year and the construction costs are estimated at $10 million. The annual routine maintenance costs are expected to be $1 million per..
"Loans are just like used cars. If you see an ad in the paper for a used car, you have to wonder, why is the owner selling it? Maybe there is something wrong with the care that is hard to see. As a result, when you approach the seller, you will want ..
Describe the three major tools of monetary policy available to the Fed.
The vertical intercept for the demand curve is at 500 and the vertical intercept for the supply curve is at 100. Initially, there is no tax on the market, and the airplane sells a quantity of 40 units at a price of $420. But at some point, because bo..
What common assumptions guide the Thucydides and Procopius readings regarding how a historian should chronicle a plague? What different assumptions do they possess about both human behavior and the role divine forces play in human history? How do bot..
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