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It has been argued that the effect of trade in goods and services has the same effect on factor income distribution in a country as would be the case if factors were completely mobile internationally. What is the reasoning behind this argument?
An investment that brings $40,000 two years from today is worth what present value in terms of today’s money with an interest rate of 25%?
Explain your answer statements be true at the same time. The unemployment rate in Tappania is higher now than it has been in 50 years.
Explain using the money market graph, what happens when (1) the price level (CPI) goes up, (2) when the discount rate is lowered and (3) when the Fed sells more bonds on the market. What will happen to the equilibrium interest rate in each case.
Classify this production function by returns to scale. Comput the firms long-run cost function.
Elasticity and Demand1434.Over the past 30 years, cigarette makers did not worry too much about rising excise taxes on their product because they could simply raise prices to generate the extra revenue needed to pay the higher taxes. why continued in..
Explain your answer what would happen to the value of gold if public discovered that it could simply be made at home from inexpensive materials.
Xaquane and Yullare are obscure but talented 18th century painters. The world’s stock of Xaquanes is 100 and the world’s stock of Yullares is 70. The demand for each painter’s work depends on its own price and the price of the other painter’s work. W..
When wages increase, will the typical person work more or less? Explain your answer using microeconomic theory. (Note: The substitution and income effects for leisure demand are an important part of this topic).
Macroeconomic considerations, such as the value of the exchange rate and whether or not full employment exists also have a bearing on the theory of comparative advantage. Explain
Corporate lawsuits may sometimes be signaling games. Here is one example. In 2003, AT&T filed suit against eBay, alleging that its Billpoint and PayPal electronic-payment systems infringed on AT&T's 1994 patent on “mediation of transactions by a comm..
When politicians using polling data emphasize issues to polls have given more importance than necessary they have fallen
Proposals to raise the minimum wage rate are often opposed with the argument that such a move would not only cause an increase in the unemployment rate but would also hurt the very people it is intended to help. Is there any validity to that argument..
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