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Suppose that a Big Mac costs $5.00 in New York and SF30 in Geneva. Suppose further that the price of 1SF on that day is $0.20. Calculate the purchasing power parity exchange rate between the Swiss franc and the dollar. Based on your calculation, is the SF overvalued or undervalued? Explain. Suppose now that a Big Mac costs 1.25 pounds in London while the spot rate exchange rate is $2.50. Is the pound overvalued or undervalued? Explain. Is the Big Mac a good basis for PPP calculations? Why or why not?
what is the average product of capital and labor? what is the cost minimization choice of capital and labor if the firm decides to produce 144 units of output?
sir francis galton a cousin of james darwin examined the relationship between the height of children and their parents
Illustrate can the oligopoly market structure make profit for both consumers and businesses by forging common standards in industries that experience rapid technological change.
Illustrate what is expected interest rate that will be charged by a bank that cannot exactly distinguish between two types but knows probabilities of each type.
On aggregate demand does fiscal policy have a strong impact. Explain the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand.
identify the circumstances under which Sarah should choose package A, the circumstances under which she should choose package B.
Explain this result in terms of the example in the question above. How might things change if the border were open, with no restrictions on immigration?
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. if a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20%, by how much should it increase the price?
explain how many sodas will the consumer purchase in a typical month. Illustrate what is the elasticity of demand for soda.
Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
If Price elasticity of demand for restaurant meals is 2.27 and restaurant meals wants to increase slaes by 45% by illustrate what percentages would the price have to decrease to get the intended resualts.
A decade ago Mirk Labs incurred $60 million in research and development coss for Zatab. Current production costs for Zatab are constant and equal to %5 per unit what whole sale price will Mirk Labs set.
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