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Consider two countries, Canada and China. Canada has comparative advantage in oil production, and China in shoes production. Suppose China grows biased to oil production. Analyze the effect of this biased growth on Canadian welfare. Could this growth hurt Canada? Fully explain your answer
The Federal Reserve Bank controls money supply and interest rates in the US. How good, or bad, a job has it done over the past 2-years?
If the quantity demanded for apples increases by 1.25 per cent when the price of grapes increases by 2.5 per cent, the cross elasticity of demand between apple and grapes is,Suppose a rise in the price of a good from $7.50 to $8.50 leads to a decr..
Briefly explain the tools that governments have to move the economy from either a recessionary or expansionary gap to the long run equilibrium level.
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
Discuss the criteria that might be applied in determining if a court should uphold a state's expropriation order or nationalization of private property. Cite to any international case that is relevant. Is there an" American counterpart" case in th..
Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is -3. Find the price at which the firm sells the product.
At a price of $40, what output level would the firm produce? What would its profits be
Elucidate the difference between a monopoly and an oligopoly, and a cartel. Provide an example of a monopoly, an oligopoly, and a cartel. Describe the welfare effects of monopolies and oligopolies.
Wall Street responded by increasing SkyWest's market valuation from $143 million to $1.1 billion after the arrangement was made. Explain, in economic terms, how this arrangement with Delta and United could have caused the value of SkyWest to incre..
Nancy Tai has recently opened a revolving charge account with MasterCard. Her credit limit is $1000, but she has not charged that much since starting the account.
You have recently seen a credit card advertisement stating that the annual percentage rate is 12 percent. If the credit card requires monthly payments, what is the effective annual rate of interest on the loan?
The absolute value of coefficient of the price elasticity of demand.
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