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4) Assume that the country of Iran is a small, open economy. George W. Bush's inclusion of Iran as a member of "the Axis of Evil," however, has complicated trade with Iran. Assume that every good coming out of Iran is subject to a "Terrorism Tariff" that makes every quantity of exports effectively more expensive to any nation that buys them. As a result, the willingness to pay by the international community for every quantity of exports from Iran is lower. Explain what happens to savings, investment, net exports, the interest rate, and the exchange rate.
when determining how a policy will change social welfare changes in individual utility for high-income individuals are
What factors affect the fuel efficiency of cars · To what extent would increased government involvement with regard to fuel efficiency affect the behavior of manufacturers · To what extent would increased government involvement with re..
What is meant by the reservation wage What factors determine the reservation wage for an individual How does the concept of the reservation wage help to explain the pattern of labour force participation within a two-partner household
Chris eats one hamburger and washes it down with one beer. He will not consume an additional unit of one item without an additional unit of the other.
How can we measure the opportunity cost of producing a good? Using a bowed outward production possibilities curve between ice cream and hammers, identify graphically the opportunity cost of obtaining an additional hammer.
Calculate the following for Brian and Kim's firm
consider an c the production function is unspecified but we know that the theory of distribution todwpmpn holds.
What about lowering interest rates and increasing money supply (i.e., monetary policy) If you were the chair economic advisor to the President of the United States, what would be your advice to him What does the Scripture have to say about money
Using supply and demand diagrams, show how each of the two developments can explain the increase in the compensating wage differential. Can information on the number of workers in the risky occupation help determine which explanation is more plaus..
A driver wishes to buy gasoline and have her car washed. She finds that the wash costs $3.00 when she buys 19 gallons at $1.00 each, but that if she buys 20 gallons, the car wash is free. Thus the marginal cost of the twentieth gallon of gas is:
Assume that the following data characterize the hypothetical economy of Trance: money supply = $180 billion; quantity of money demanded for transactions = $160 billion; quantity of money demanded as an asset = $10 billion at 12 percent interest, i..
10 annual purchases of $1000 worth of common stock. The stock paid no dividends. Then for 4 years all the stock sold for $28,000. What interest rate obtained on the investment?
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