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Question: The figure below shows the production possibilities frontiers (PPFs) for Italy and India for their domestic production of olives and tea. Without trade, assume that each is consuming olives and tea at point a.
a. If Italy and India were to consider specialization and trade, what commodity would each specialize in? What is India's opportunity cost for tea and olives? What is Italy's opportunity cost for tea and olives?
b. Assume the two countries agree to specialize entirely in one product (Italy in olives and India in tea), and agree to split the total output between them. Complete the table below. Are both countries better off after trade?
Review the World Trade Report 2012 from the WTO on trade and public policies (the executive summary is available for review as well) at the WTO Research and Analysis webpage. As you go through this resource, think about what the significance of bo..
create a plan for economic moat
1. down on our luck studio has spent 100 million producing an awful film a depressing story about a miserable person.
The marketing team of Burton Snowboard is analyzing her demand for two types of snowboard – Professional and Standard models. At Thanksgiving sales, the Professional board is discounted from the original price of $1,000.
Gary knows very little about the difference between makes and models. How could he use market signals, reputation, or standardization to make comparisons?
A student finishes her college after accumulating a $30,000 federally backed student loan over 4 years. The loan charges 3.5 % interest compounded monthly. What is her monthly payment if she wants to repay the loan (amortize) over the next 6 years..
Using budget lines and indifference curves, prove to your colleague that he is wrong - decompose the change in price into two components: pure substitution effect, and income effect.
The end of the project is 1 month away. Give a brief answer to how you would respond to each of the following situations. Your project team is doing well. They are meeting the deadlines and the project looks like it will be successful.
Presently, AFC has on its medical staff 10 doctors and 10 nurses. The daily wage of a doctor is $600, whereas a nurse is paid only $200 a day. Write the equation for the medical isocost of AFC.
A standard "money demand" function used by macroeconomists has the from.
a. Assuming that the price of labor (PL) is $1 and the price of capital (PK) is $2, calculatethe total cost of production for each of the five levels of output using the optimal (leastcost)technology at each level .b. How many labor hours (units of l..
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