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One July, the United States sold aircraft worth $1 billion to China and bought aircraft worth only $19,000 from China. During the same month, however, the United States bought $83 million worth of men's trousers, slacks and jeans from China but sold only $8,000 worth of trousers, slacks, and jeans to China. Using what you have learned about how trade is determined by comparative advantage, answer the following questions.
A. Which country has the comparative advantage in aircraft production? In production of trousers, slacks, and jeans?
B. Can you determine which country has the absolute advantage in aircraft production? In production of trousers, slacks, and jeans?
hat same article reports that shakeup of upper-management is over at U.S. industries and that over next decade re will be a nationwide surge in demand for MBA's. How will se events affect your industry's ability to expand its own base of MBA's.
What is the point price elasticity of demand at a price of $70? What is the point price elasticity of demand at a price of $60?
The 12-month interest rate on dollar-denominated assets (like bank deposits) is 2.00%. The 12-month interest rate on euro-denominated assets is 1.80%. The current spot exchange rate is $1.50 per €. The current forward exchange rate is $1.58 per €. Ex..
Conclude by choosing a position for or against ethnicity-based jury nullification and defend your decision.
Is the industry or industries in which the firm operates conducive to abnormally high rates of return.
Define actual and potential, expenditures, taxation, aggregation supply, aggregation demand, AS curve, AD curve. Equilibrium of AS and AD sources of long-run economic growth
Before entry, an incumbent earns a monopoly profit of Pm = 10 million. If entry occurs, the incumbent and an entrant each earn the duopoly profits Pd = 3 million. Suppose the incumbent can induce the government to require all firms to install polluti..
Ryan has $200 per week to spend on gas and food. The price of gas is $4/gallon and the price of food is $2 unit. What is the opportunity cost of an additional unit of food in terms of gallons of gas? What is the opportunity cost of a gallon of gas in..
Increase or decrease in the money supply increase the price level to the tolerable range
Consider the following Heckscher-Ohlin model: there are two countries, America and China, two goods, high-tech manufactures and low-tech manufactures, and two factors of production, skilled labor and unskilled labor. What happens to the wage of skill..
Jack wishes to become a millionaire by the time when he is 60 years old. He believes that by careful investment he can obtain 15% rate of return. He plans to add a uniform sum of money to his investment each program each year, beginning on his 20th b..
Betty can make either “12 bottles of wine and 0 boxes of chocolates” or “0 bottles of wine and 96 boxes of chocolates” or a combination of wine and chocolates. Find the equilibrium price (P), quantity (Q), and revenue in a market characterized by the..
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