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Economists frequently point out that factor movements between two countries can be a substitute for goods movements between the countries in terms of the impact on relative factor prices in the countries. Explain why the two types of movements can be substitutes.
How could union members’ current annual incomes decline on net even if a long-lived strike induces a firm’s management to increase the hourly wage rate? Sometimes union memberships coordinate work stoppages when all workers call in sick. From an econ..
When a industry's marginal revenue product equals the income rate, marginal revenue also equals marginal cost.
How would the following changes in price affect total revenue? That is, would total revenue increase, decline, or remain unchanged?
What is the profit maximizing condition for the firm when choosing the optimal level of labor? Write down the condition in REAL terms. Suppose the Labor Supply Curve is given by Ns = 92 + 6w. (w is the real wage). Obtain the Equilibrium real wage and..
If U.K. workers wage is 30GBD per day (and fixed exchange rate is $2= 1GBD Illustrate what is upper limit to U.S. worker's wage per day.
A restaurant/bar is analyzing its pricing of beer. It has determined that the price elasticity of demand for beer is −0.8; the cross-price elasticity for wine with respect to the price of beer is 0.9; What is the restaurant's profit (prior to the pri..
Draw a graph with “hours of typing” on the horizontal axis and “hours of filing” on the vertical. Do your indifference curves slope upward or downward? Why? Suppose you currently type for 3 hours a day and file for 5, but you’d be just as happy typin..
Suppose that the economy improves and the crime rate in West Philadelphia drops, so that the marginal product and average product of a group of 100 police officers is now 55 arrests per hour for any number of police officers. What is the optimal allo..
Examine how the Federal Reserve controls the money supply. In a paper, formulate how the independence of the Federal Reserve should or should not be modified in any way.
Classify the following topics as relating to microeconomics or macroeconomics?
An existing machine is worth $2,500 today. Its $8,000 operating cost for this year is predicted to increase by $1,000 annually, owing to deterioration. It will be retired in 4 years, when its salvage value will be zero. what is the equivalent annual ..
A fractional banking system is fundamentally prone to the (speculative, liquidity, bailout, or monopoly) problem because it creates more receipts for deposits than there are in reserves in the system.
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