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In 2009, the United States imposed a tariff of 35% on radial car tire imports from China. The tariff caused imports of these tires to drop from 13 million tires to less than 6 million tires in one quarter, and the average price of these tires to increase by $8 per tire. Who was the primary loser from this tariff?
In long-run competitive equilibrium, product price equals long-run average cost and also equals long-run marginal cost. Thus, economic profit equals $0. Please explain why firms have not incentive to exit the industry.
In evaluating the accuracy of their statements, should one distinguish between (i) economist’s descriptive statements, propositions, and predictions about the world, and (ii) their statements about what policies should be adopted. Explain in detail
propose to model his tastes in the following way: For any 2 bundles A and B of "grams of cocaine" and "dollars of other consumption.
You have been asked by an investor to value a local restaurant. In the most recent year, the restaurant earned pretax operating income of $300,000. Income has grown an average of 4% annually during the last five years, and it is expected to continue ..
List two unbiased estimators and their corresponding parameters. (Select all that apply.)
In a situation of a fixed exchange rate, explain why, in the monetary approach, an excess supply of money leads to a balance-of-payments deficit. Why is the deficit only temporary? How might advocates of the monetary approach explain a long-lasting d..
Draw a market with a negative production externality. What kind of instrument (policy) do you use? What's its magnitude? What does the policy lead agents on both sides of the market to do?
Ceteris paribus, three industries are identical except that in industry A there are six firms that produce a homogeneous product. In which industry is collusion likely more sustainable?
Public health information can be broadcast at a cost of $100. Public health information is a pure public good, in that many people can use the information simultaneously and preventing people from using the information is very difficult. One group of..
During the Great Depression, the Federal Reserve Board
Brad will graduate next year. When he begins working, he plans to deposit $3,000 at the end of each year into an IRA account. If the retirement account pays 4% interest, how much will be in his account after 40 deposits? ( Please show work step by st..
Pick any public company and discuss which 2 or 3 macroeconomic indicators which would most profoundly affect that business and why.
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