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Prior to opening of trade shoes cost $50 per pair in U.S. and $10 per pair in China. If the price of shoes in U.S. were to fall to $20, U.S. demand of shoes would increase to 60 million pairs and supply would fall to 54 million pairs. On other hand, if price of shoes were to rise in China to $40 per pair, Chinese supply of shoes would rise to 140 million pairs and demand would fall to 130 million pairs. Using this information show the equilibrium in the international market for shoes on a graph on graph paper. What is the international equilibrium price and how many pairs of shoes are exported when there is free-trade in shoes between U.S. and China. Which country exports shoes? Calculate the gain from trade in shoes to U.S. and China.
What is their goal, and illustrate what decision criteria do they use in trying to reach that goal.
Two identical small poor countries, Country A and Country B, have a well educated population but small capital stock. Initially they both have closed economies. Country B opens up for the world and can be observed as a small open economy. In what cou..
Offering group medical coverage to large firms and requiring all employees to participate in the coverage.
What are financial intermediaries and what do they do. What information problems exist in financial relationships and how do financial intermediaries help solve them.
Citizens can protect themselves in the case of robberies or harm by using these guns. Other states do not allow citizens to carry handguns
summarize how the test affected the court proceedings. Submit your paper as a Word document to your instructor. Remember to correctly cite your sources.
Suppose nominal GDP rose from 6250 billion in 1995 to 6630 billion in 1996. If the GDP deflator rose from 125 to 130 during this time, what was the percent growth in real GDP? Given the data in part (a), what was the rate of inflation for goods and s..
Briefly describes the organization. What makes Whole Foods successful? What is unique about the way the company is led? What type of management style does the John Mackey use? What organizational beliefs and values does the Mackey hold important?
You own a retail establishment run by a store manager who receives a flat salary of $80,000. If you set up another store as a franchise with incentive compensation to the franchisee, what would be a reasonable total compensation range that the franch..
When one person saves, that person's wealth is increased, meaning that he or she can consume more in future. But when everyone saves, everyone's income falls, meaning that everyone must consume less today. Explain this seeming contradiction.
Suppose that the monetary base increases by $400 billion. If the money multiplier equals 2.75, the money supplies:
Discuss how the two cases in this chapter illustrate the major theme of this text: changes in the macro environment affect individual firms and industries.
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