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A country has a comparative advantage in a good if
It can produce more of the good than another country.
It can produce a good at a lower opportunity cost relative to another country.
It can specialize only in two goods.
It also has an absolute advantage in the production of the good.
Imagine you have $20000 and you are willing to invest. A safe investment that promises to pay 5% profit after 1 year. A risky investment that has a 20% chance you might loose half of your money. How much do you expect to get paid for a year in the s..
q. speedy growth of the nationwide debt alarmed various politicians as well as created pressure for restricting
This change undermines the marketplace for the replacement which is about twice the size of the marketplace for T3MP.
If the return of two stocks has a correlation of 1, what does this imply about the relative movements in the stock prices?
Draw the Hick's income and substitution effects for c1,c2 in c1,c2 space if the interest rate decreases to .05.
Illustrate what is the best measure of economic well being of individuals in society.
A CFA charterholder is the Fund Manager for a non-profit organization. During a presentation regarding the restructuring of their investment portfolio's asset allocation, the Head of the Finance Committee questions the manager. As part of his resp..
in which new trainees are paid relatively high starting salaries and are not expected to make substantial contributions to the company until after the program is over.
If the farmer rented her land from a landowner,would she have the same incentives to control soil erosion. What would the landowner have an incentive to control erosion.
The United States can make certain toys with greater productive efficiency than can the China. Yet we import those toys from China.
Can you think of circumstances in which each industry would exhibit the same capital-labor ratio in both countries.
Which of the following represents the consensus among most economists today with respect to the management of unemployment?
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