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1. True or False: Optimal tariffs are an effective means of improving a nation's trade balance
2. True or False. Explain: Assume 1990 to be the base year. If by the end of 2004 a country's export price index rose from 100 to 130 while its import price index rose from 100 to 115, its terms of trade would equal 113.
3. True or False: If quotas are administered by exporting nations, the net welfare loss to the importing nation includes the productive, consumption and revenue effect.
4. True or False: A small country's subsidy of an export good will drive down the world price of the good.
5. True or False: Tariffs, unlike quotas, promote a domestic firm's monopoly power.
a. increase aggregate demand by cutting government spending or raising taxes.b. decrease aggregate demand by cutting
Amityville has a competitive chocolate industry with supply curve Ps =440+Q. While market demand for chocolate is Pd=1200-Q, there are external profits that the citizens of Amityville derive from having
1. why does rent control result in a shortage of rental units?2. any time there is a shortage of a good it means that
Describe each market structure discussed in the course (perfect competition, monopolistic competition, oligopoly, and monopoly) and discuss two of the market characteristics of each market structure. Identify one real-life example of a market struc..
Assume that the U.S. is relatively K (capital) abundant and L (labor) scarce relative to Mexico. In terms of the Rybczynski theorem, what would have to happen between the U.S. and Mexico in order to reduce the U.S.'s comparative advantage and global ..
now that you have completed the sections on fiscal and monetary policies reflect on what you have studied about the
Employee benefits have become more and more an important part of employee compensation. According to the text, what percentage of employee compensation is employee benefits?
Consider two ways to protect your car from theft. The Club(a steering wheel lock) makes it difficult for a car theif to take your car. Lojack(a tracking system) makes it easier for the police to catch the car thief who has stolen it.
Describe a situation of incentive misalignment that you have personally observed (ideally in your personal work environment, but could also be in a relationship, in the consumer marketplace, in public policy, etc.) and generally describe a way to ..
Explain what is different between firms in monopolistic competition and firms in oligopoly. What does this difference mean for prices and quantities and for economic profit?
suppose that there are two products clothing and soda. both brazil and the united states produce each product. brazil
Calculate the implied arc income elasticity of demand. I =? Given a price elasticity coefficient of -2.5, to what level would price have to be lowered to maintain there sales at a level of 28 million square yards. New Price =?
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