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Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Izodia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily. Why does the United States have an absolute advantage in both goods? Which country enjoys a comparative advantage in food? Why?
Use a graph of the pollution abatement market, model a situation in which the allocatively efficient level of abatement occurs at 100%,
Although the world financial crisis of 2008-2009 began in the U.S. sub-prime mortgage market, it quickly spread around the world. Ironically, foreign assets became viewed as riskier than U.S. assets.
The last decade has witnessed an unprecedented number of mega-mergers in the banking industry: Bank of America's acquisitions of Fleet Bank, MBNA, and U.S. Trust; Bank of New York's acquisition of Mellon Financial; and Wells Fargo's acquisition of..
Concerned about the polictical fallout from rising gas prices, suppose that the u.s. government imposes a price ceiling of $3.00 a galon on gasoline. Q:: Explain how the market for gasoline would react to this price ceiling.
I am an advisor to United State Federal Trade Administration in charge of doing background research that will be used for trade negotiations by policy makers. Discuss advantages and disadvantages of expanding NAFTA.
A hot topic in today's news is the rising cost of health care and how we, as a country can provide universal health coverage. Approximately 47 million individuals in the U.S. are uninsured or underinsured.
Suppose that a certain manufacturer has a monopoly on the sorority and fraternity ring business (a constant-cost industry) because it has persuaded the "Greeks" to give it exclusive rights to their insignia.
The U.S. has long been suffered from trade deficits (especially with China). Explain the effect of trade deficits on economic growth in the U.S. What are the options to deal with China on trade deficits
Why are some countries today much poorer than other countries Are today's poor countries destined to always be poorer than today's rich countries If so, explain why. If not, explain how today's poor countries can catch or even pass today's rich co..
The Internet has allowed for raised trade in services such as technical support, a development that has lowered the prices of such services related to manufactured goods.
When the United States imposes a tariff or quota on imports, who pays it? Who profits from a tariff or quota and how do changes in interest rates, inflation, and income affect exchange rates?
Since Fall of 2012, the price of oil has shown a steady decline as continued increase of global oil production that has far exceeded the rising demand for oil. Accordingly, many analysts in the energy field have had predicted the likelihood of fur..
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