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Countries A and B have two factors of production, capital and labor, with which they produce two goods, X and Y. Technology is the same in the two countries. X is capital- intensive; A is capital-abundant. Analyze the effects on the terms of trade and on the two countries’ welfare of the following (hint: use standard trade model):
a. Country A experience biased growth toward good X.
b. Country A impose tariff to the imports.
What are the positive and negative aspects of budget deficits and surpluses? What policy is best for today's economy? Explain your answer.
Suppose the owner bears a monitoring cost of m, which is subtracted from income, so that the owners utility is U (x^beta, y^beta-m). mLet the monitoring cost person be a function m(n) of the number n of team members, with m increasing as n increase. ..
Mary is in equilibrium. The MUa =6, MUb =12, Pa=2, what is the price of b? Zach is in equilibrium. The MUa=2, MUb=8, what is the price of a in terms of the price of b? What is the utility maximizing or optimization condition?
q. suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs
Suppose that international markets expect inflation to average 1.7% in germany for the foreseeable future, and U.S. inflation is expected to average 1.5%. Based on that information one should expect the dollar to:
Assume a local producer of beef cattle wishes to remain at the same level of output when the input cost of corn increases but the substitute input milo does not increase, what will the producer do to remain at the same level of output?
What is the present worth of $500.00 in month 1, $510.00 in month 2, and amounts increasing by $10 per month through month 36, if the intrest rate is 15% per year compounded continuously?
the participation rate 60 percent, 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?
Why is it often difficult to develop a realistic analysis?
q1. if argentina wanted to pay off their u.s. dollar debt after the peso devalued how many argentine pesos would it
q1. explain why is dispute among international dependency and the neoclassical counter-revolution schools referred to
What is the difference in profit maximization between the perfect competitor and all other types of firms? A(n) ____ may offer products that are either differentiated or nondifferentiated.
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