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The accompanying hypothetical production possibilies tables are for New Zealand and Spain. Each country can produce apples and plums. Plot the production possibilities data for each of the two countries separately. Referring to your graphs, answer the following: (a) What is each country’s ratio of producing plums and apples? (b) Which nation should specialize in which product? (c) Show the trading possibilities lines for each nation if the actual terms of trade are 1 plum for 2 apples. (Plot these lines on your graph.) (d)Suppose the optimum product mixes before specialization and trade were alternative B in New Zealand and alternative S in Spain. What would be the gains from specialization and trade?
Consider the discrete Bertrand game described in the Oligopoly lecture notes/video. According to the rules of this game each student selects a number from the set {0,1,2, 3, 4, 5, 6, 7, 8, 9, 10} and is randomly matched with another student.
Homemakers are not included in the employment or labor force totals compiled by the Bureau of Labor Statistics household survey. They are included in the working-age population totals. Suppose that homemakers were counted as employed and included in ..
Should you make her an offer at the salary or continue the interviewing process. Explain
Suppose price of Treasury bill falls to $925. Illustrate what is interest rate.
All stratified societies have groups of individuals that do not produce, but still receive a ‘cut’ of the social surplus. How does Diamond argue that these ‘privileged’ individuals manage to convince productive members of society to give them some of..
Suppose that the current exchange rate is 200 yen per dollar, the U.S. interest rate is 6%, the Japanese interest rate is 4%, and there is no risk premium. What do you expect the exchange rate to be a year from now?
Are you surprised by the variety and range of issues addressed by the World Bank - projects that meet basic needs such as fresh water and programs to provide Internet services? What are your thoughts on this variety?
Consider the market for leather shoes. If producers believe the price of leather shoes will increasae next month, today
Earlier this year, Greek citizens, fearing currency changes or capital controls, took billions of euros out of their bank accounts. Some of it they sent to banks in other countries, and some of it they even hid in flower pots, freezers, and yes, unde..
A deposit of $ 40,000 is put in a savings account at an interest rate of 3%. The interest is compounded quarterly, Equal annual withdrawals are to be made from the account, beginning one year from now and continuing forever. What is the maximum annua..
Peter Evans emphasizes that states have to play specific roles in order to promote economic development. According to him what are the roles of the states in economic development? Explain and discuss. Compare Evans’s arguments with the neoliberal the..
When the price of bread increases by 3 percent, the quantity demanded of crackers increases by 2 percent. The cross elasticity of demand between crackers and bread is?
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