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The WSJ recently presented data suggesting that United Airlines was not covering its costs on flights from San Francisco to Washington D.C. The article quoted analysts saying that United should discontinue this service. The costs per flight (presented in the article) included the costs of fuel, pilots, flight attendants, food, etc. used on the flight. They also included a share of the costs associated with running the hubs at the two airports, such as ticket agents, building charges, baggage handlers, gate charges, etc. Suppose that the revenue collected on the typical United flight from San Francisco to Washington does not cover these costs. Does this fact imply that United should discontinue these flights?
The following table shows the hourly output per worker in two industries in Chile and Argentina: Hats Beer Chile 8 6 Argentina 1 2 A) suppose that Chile and Argentina currently do not trade with each other. Each has 1,000 hours of labor to us..
With respect to aggregate supply and aggregate demand, what will be most likely to happen when quantity supplied exceeds the quantity demanded?
Select one regional trading arrangement and describe three economic effects of the arrangement
If offshore assembly provisions were extended to include more goods and services, what would this do to the actual level of protection provided by a nation's nominal tariff schedule? Describe your reasoning.
terrorst attacks foster inability and may affect productivity over the short and long term. Do you think the september 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affected short-and/or long-term productivity in the Unite..
Based on your own internet research, identify an "external shock" (within the last decade) to the U.S. economy and describe the impact on Aggregate Demand and/or Aggregate Supply. Include the government response (if any) to this shock and comment ..
As a seller of data to customers in Brazil, suppose you are an exporter and you periodically buy advertising space on Brazilian Web sites to advertise your service;
Suppose there are two countries in the world, U.S. and Japan. If the Fed wants to fix the exchange rate, the Fed can buy U.S. dollar/sell Japanese yen to prevent dollar from depreciating. Therefore, if the Fed wants to prevent dollar from apprecia..
Which of these concepts can be used to formulate a practical choice criterion in benefit-cost analysis and why may it be difficult to use one or more of the others in this way.
Presidents, senators and members of congress came from a different backgrounds but all must decide upon a great many issues that involve macroeconomics.
The extensive application of protective tariffs destroys ability of international market system to allocate resources efficiently.
we have stressed that marriage is an institution with many economic aspects. Use your insights as an economist to explain why the consumption of marriage (as measured by age at first marriage, proportion married, and divorce rates) has been decrea..
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