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Assume that the free trade unit price of a lamp is $200 and unit cost of an input for a lamp is $100. Given this information about lamp production in a country, calculate the effective rate of protection (ERP) afforded to the lamp industry by a 12% tariff on lamps and each of the following tariffs on lamp in outs.
a) 12% tariff on imported lamp inputs
b) 5% tariff on imported lamp inputs
c) 20% tariff on imported lamp inputs
d) 0% tariff on imported lamp inputs
Indirect finance is more important than direct finance in most countries in part because of information costs associated with lending. Explain why are financial intermediaries relatively more effective at reducing these costs
To make the case that one country has a comparative advantage over another country in the construction of a given good or service,
q1. suppose the number of employed people in an economy is 121166640. the unemployment rate in this economy is 10.4
calculate the profit maximinizing output. calculate the economic profit earned. Illustrate what is the industry for product equilibrium.
How will the effect on price of an outward shift in demand for labor differ from the effect on price of an equivalent shift in the demand for land.
Assume the longer the search goes, the lower price the consumer would pay for the good. Furthermore, assume there are diminishing returns to the search since it is harder to find even lower prices as the search continues; that is: p?(t) > 0. Without ..
Elucidate in detail the interrelationships between economic facts, theory, and policy. Critically evaluate this statement: "The trouble with economics is that it is not practical. It has too much to say about facts."
Assume that the low-calorie frozen, microwavable food company from Assignments 1 and 2 wants to expand and has to make some long-term capital budgeting decisions. The company is currently facing increases in the costs of major ingredients.
Suppose Nation A can produce 2 million pounds of sugar per week OR 1 million pounds of rice in a week and Nation B can produce 10 million pounds of sugar per week OR 3 million pounds of rice in a week. If this is a two-good, two nation model
Elucidate how these tendencies lead to religion becoming evil, how does Kimball respond to them and how the Greek Orthodox tradition transcends them.
q1. one of the most important areas of economic that namely use of leading economic indicators to forecast the future
Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy? Explain.
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