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1. Which region appears to have a comparative advantage in producing cut flowers: Colombia or California? Explain.
2. How have U.S. consumers of cut flowers been affected by the cutback in Colombian imports?
Your financial adviser recommends buying a 10-year bond with a face value of $1,000 and an annual coupon of $75. The current interest rate is 8 percent. What might you expect to pay for the bond (aside from brokerage fees)?
Equilibrium in the market occurs at a price of $2,500 and a quantity of 10,000. Draw the demand curve that must exist if consumers bear the entire burden of a $500-per-TV tax imposed on this market
Discuss income elasticity as it pertains to inferior goods and to normal goods (sometimes also called superior goods).
Suppose that the Federal Reserve purchases $10 million in securities [T-bills] from First National Bank by increasing FNB’s account at the Fed. Use a T-account to show the impact of this transaction on FNB’s balance sheet. Remember that the funds a b..
Identify one positive or negative supply shock in the last decade and what is the impact that the shock has had in our economy.
Two firms with differentiated products compete in prices with demands: q1: 1-P1+0.5P2 q2: 1-P2+0.5P1 Suppose that both firms can produce at the same constant marginal cost c. a. Draw the best response functions. b.Find the prices corresponding to th..
In 2014 in a country with a labor force of 100 million, 6 million people were unemployed. In 2014 the number of unemployed people increased to 7.750 million. Assuming that the labor force did not increase in 2014, use the Okun’s law and formula predi..
Suppose that the monthly demand function of a particular commodity is given by P= 200 -0.4x and the supply function is P = 0.2x + 80 where x is the number of units demanded and supplied and P is in pesos. Determine the equilibrium prics and quantity
Seller surplus is _________.
Which of the following statements are true about both monopolistic competition and monopolies? Select all that apply.
q1. explain how immigration between two countries could be an equalizer of wages and economical for both sending and
The market demand function is Q=80-p. Describe the profit maximizing input use, the output price, and the monopolist's profit.
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