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Consider the following Heckscher-Ohlin model: there are two countries, America and China, two goods, high-tech manufactures and low-tech manufactures, and two factors of production, skilled labor and unskilled labor. America is skilled-labor abundant and China is unskilled-labor abundant. High-tech manufactures are skilled-labor intensive and low-tech manufactures are unskilled-labor intensive. What happens to the price of high-tech manufactures relative to the price of low-tech manufactures in America following trade?
Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of ) where interviewed regarding the effect on the firm they both work at. Keeping all else constant, their answer would likely diff..
Suppose that the long-run world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current long-run equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. Next, suppose the..
Charlie has $ 1000 to allocate between football tickets and movie tickets over the year. The price of each football ticket is $50, and the price of each movie ticket is $10. His marginal rate of substitution of football tickets for movie tickets equa..
q1. you have used particular bras well as well as type of sunscreen for several years but after discovering that some
Recall the looser pay winner auction experiment done in class. discuss how these experiments explain why the bidders changed their minds toward wanting to bid well above the value of the prize, even though they refused to do so at the beginning.
Illustrate what was the marginal cost of the 251st unit of output.
Suppose, initially, the interest rate parity condition holds. Then at some point, U.S. interest rates are 4 percent more than rates in the EU. Would you expect the dollar to appreciate or depreciate against the euro, and by how much?
What lessons can we learn from the Chad-Cameroon Oil Pipeline and the Lesotho Highlands Water projects? What corrective measures should be taken?
A couple wants to save for their daughter’s college expense. The daughter will enter college 10 years from now and she will need $45,000, $46,000, $47,000 and $48,000 in actual dollars for 4 school years. What is the equal amount, in actual dollars, ..
In an attempt to bring lenders and borrowers together following the financial crisis of 2008, the federal reserve made a large amount of new funds available to financial markets. Any of these loaned out by banks would be classified as __________ of t..
Describe the least cost combination of L and K when output is produced at the rate of 1,000 tons per day. Determine the required outlay for 1,000 tons per day.
The best way to do a sales analysis is to first break down sales by customer type, and then geographic region. Pricing objectives need not be explicitly stated. "Psychological pricing" involves setting prices which end in certain numbers, while "odd-..
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