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Assume that the formation of a customs union turns out to include the lowest-cost world producer of the product in question. Which effect could not occur for the participating countries?
Trade creation-production effect
Scale economies and competition
Trade diversion
Trade creation-consumption effect
What is a price ceiling and what effect does it have on the market? List and explain several positive and or negative consequences of this action. What would happen to producer and consumer surplus?
Assume there is a central city school district in which the student population is predominantly black. What will there be a salary differential between black and white teachers.
Do you think this pattern of trade is consistent with the principle of comparative advantage?
Consider a small country that exports steel. Assume that a "pro-trade" government deicdes to subsidize the export of steel by paying
If the price level remains constant by Explain how more will real output increase.
many supply shipments to retailers are interrupted during a natural disaster. Assuming that the law is strictly enforced, illustrate what are the economic effects of the price gouging statue.
The US government could not pass its annual budget. As a result, the US government has partially shut-down: roughly about 800000 federal employees of non-essential services are out of work
Find the total industry output and the number of firms in the market. How much economic profit does each firm in this market make?
Illustrate what price should the firm charge if it wants to maximize its profits in the short run. What arguments can be made for charging a price higher than this price.
Wheat farmers will receive total revenues from consumers and the government totaling
Why does hedging usually take place with a forward contract.
Why is it being used to hold "illegal combatants" instead of a military prison in the United States
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