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The solution to International trade
1. Suppose we refused to sell goods to any country that reduced or halted its exports to us. Who would benefit and who would lose from such retaliation? Can you suggest alternative ways to ensure import supplies? Are there any particular imported commodities that you or your firm rely on? What has happened to the supply of these imports over the years?
2. Domestic producers often base their claim for import protection in the fact that workers in country X are paid substandard wages. Is this a valid argument for protection? Can you give examples of when it did/did not work? Is there any trade restriction that the US government could impose that would have a negative/positive impact on your organization? Explain.
3. How do efficiency techniques differ in the short- versus long-run when attempting to maximize profits? What specific incentives are used in your workplace to promote efficiency? What conflicts may exist between a firm's desire to maximize profits and its ethical obligations? Can you give an example from your place of work?
American Mining Company is interested in obtaining quick estimates of the supply and demand curves for coal.
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You are told to produce a quantity that maximizes profit. How many units do you produce and what is your profit? How many machine and labour hours are used in production?
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Find the overall change in the economy's money supply if, when the reserve ratio is 5%, the Federal Reserve System buys $250 million of US government bonds from the banking system. What would have been the change if several billionaires deposited ..
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In other situations it would be reasonable for a purely competitive wheat farmer to raise his price per bushel because he could reduce his variable costs by selling less at a higher price. True or false, and why?
Illustrate a supply or demand curve shift for the following article. The price of oil fell on Monday, January 12, 2009 as the weak economy has undermined oil demand. Light, sweet crude for February delivery fell $3.24 or 7.9%, to $37.59 a barrel.
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Given the data of real disposable income and real consumption, draw consumption function, determine the slope-What is the marginal propensity to consume?
The effects on the development also diffusion of computer technology in the 1970s and 1980s on the U.S. economy in the late 1990s to the present.
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