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Countries A and B have two factors of production, capital and labour, with which they produce two goods, X and Y. Technology is the same in both countries. X is capital intensive; A is capital abundant. Analyze the effects on the terms of trade and the welfare of the two countries. Use diagrams in your analysis. (a) An increase in B’s capital stock. (b) An increase in B’s labour supply.
What would you expect to happen to the stock of domestic bonds in the hands of the public as R and Y both increase along a stable MM curve? Explain in intuitive terms how such a change in the stock of domestic bonds in the hands of the public could b..
Consider the market for leather shoes. If producers believe the price of leather shoes will increasae next month, today
Can anyone recommend some free software for students studying economics for use in senior projects, theses, or dissertations? What kind of economic freeware exists for economics students?
Consider a competitive market in long run equilibrium (all firms are identical with a U-shaped cost structure, there is free entry/exit in the market, and there are no other external price effects). Suppose the government imposes a fixed fee per year..
Analyze the effects of a reduction in the nominal money stock on the price level, on output, and on the real money stock when the aggregate supply curve is positively sloped and wages adjust slowly over time.
M is the average income in the United States. What could be the impact on your rm.
Consolidation activity in the hospital industry. One of the primary reasons that costly technology is being introduced into the health care system is
What’s Fluzzle Tube you might ask? It is an inflatable ring for water recreation. What makes the tube incredibly unique is its shape. It is shaped in the form of an interlocking jigsaw puzzle piece. This allows you to connect with all your friends an..
Suppose you have identified the existence of a cluster and are looking to classify it. Any cluster will contain features of one or more of the "ideal" types described in the text. What key, observable characteristics would you use to classify the clu..
Suppose that Omar’s marginal utility for cups of coffee is constant at 3.5 utile per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the..
Assume that imports increase supply. In terms of demand, supply and consumer surplus, why would consumers prefer more imports? Adam Smith studied a pin factory and found that 1 individual doing all tasks necessary to make a pin could only make severa..
What are some methods for improving the financing of the U.S. health care system. Are these methods realistic and achievable? Justify your answer with solid reasoning and appropriate references.
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