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Two countries will have zero incentive to trade if their production possibilities curves are parallel straight lines because
One country has a comparative advantage in the production of both goods, thus providing that country with no incentive for trade.
The opportunity costs for both countries are the same.
One country has an absolute advantage in the production of both goods, thus providing that country with no incentive for trade.
An intersection of the two lines is not possible, and therefore trade equilibrium is not possible.
A sum of money Q will be received 6 years from now. At 5% annual interest, the present worth of Q is $60. At the same interest rate, what would be the value of Q in 10 years?
Provide an appropriately labeled boxplot of the data below and use a randomization test to examine whether the null hypothesis holds that male and female turtles have the same mean serum cholesterol.
Why is the purchasing of new housing included in the investment component of GDP rather than the consumption component? Also any reason why household purchases of new cars should be included in investment rather than in consumption?
First Bank has total deposits of $2,000,000 and legal reserves of $220,000. a. If the reserve requirement is 10 percent, what is the maximum loan that First Bank can make, and what is the maximum increase in the money supply based on First Bank's res..
q.exercise 1graphically represent on the islmfx diagram the effects of the following cases use a new diagram for each
Illustrate what would the new price also output in the market be. Illustrate what would the new level of output for the typical firm be.
q1. for mgtp2 the demand functions for good 1 and 2 are given by the equations x1mp2-1 and x2p1p2 where m is income and
If the economy is competitive so that factors of production are paid the value of their subsidiary products, what is the share of total income that will go to land.
Suppose that you have a job paying $70,000 per year. With a 5% probability, next year your wage will be reduced to $40,000 for the year. What is your expected income next year? Suppose that you could insure yourself against the risk of reduced consum..
Find an article (newspaper, magazine or online) about the unemployment rate. Use the article to answer the following questions: What is the current unemployment rate in the US? Is the unemployment rate rising, remaining the same, or decreasing? There..
Assume the demand for gasoline is perfectly inelastic—i.e., the demand curve is vertical. If a tax is levied on the producers of gasoline, what percentage of the tax collection would be paid by the consumers of gasoline 0% or 100%? Explain.
A manager tells his workers that they must perform their duties in the exact manner and order that he has commanded, with no exceptions. He is using
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