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Q. Assume Saudi Arabia and United States face production possibilities for oil and cars shown in accompanying table. A. What is opportunity cost of producing a car in Saudi Arabia? In United States? What is opportunity cost of producing a barrel of oil in Saudi Arabia? In United States? B. Which country has comparative advantage in producing oil? In producing cars?
Illustrate car production is capital intense relative to textiles. The US is capital abundant and China is labor abundant. Under trade, both countries produce both goods. If the labor endowment were to increase in the US, this would.
Does the nominal interest rate adjust more than one-for-one or less than one for one to expected inflation.
What is the Law of Diminishing Returns. Discuss a company's two short run options: 1. stay open or 2. shut down.
Illustrate what was the growth rate of nominal GDP between 1996 also 1997. Why do economists use real GDP per capita to measure the economic progress.
Illustrate what monetary policy tools should the Fed use to achieve the results you recommend.
Write down a formula that express the marginal product of labor in the short run as a function of the amount of labor used.
Assume the average value of P is $ 3 and the average value of Po is $ 6. Illustrate what is the price elasticity at the average values of P and Po.
Economists have argued that rent control is "the best way to destroy a city, other than bombing." Why would economists say this. Illustrate what problems might it face in the future.
Discuss the Federal Reserve's assessment of the current economic activity and financial markets. Elucidate the Federal Reserve's current view about inflation.
Elucidate what percentage of the variation in salary is explained by this model. Describe the point estimate of salary for a teacher with 20 years of experience.
Illustrate what changes in the Ants' resources do we see through the film. Are the Grasshoppers commercial talent and they are just annoying.
Illustrate the perfectly competitive market for root beer in chaseystan has achieved long run equilibrium.
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