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Q. Suppose that one country subsidizes its exports and the other country imposes a "countervailing" tariff that offsets this effect, so thatin end relative pricesin second country are unchanged. What happens to the terms of trade? What about welfarein two countries? Suppose, on the other hand, that the second country retaliates with an export subsidy of its own. Contrast the result.
If the consumption function: C = $350 + 0.9Yd
a) At what level of income does savings equal zero?
b) If this economy's disposable income were $4,000, what would be its consumption and savings?
If the government uses a tax to get producers to internalize their externality, what is the net price received by producers.
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
In a typical day the store sells some of each type of cola, which suggests that Major League Baseball has adopted FOA because it fears that regular binding arbitration is addictive.
Explain the role culture may play in influencing entrepreneurship both at the individual and social level. Define culture in your response.
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
Austria has a history of strong hostility to nuclear power, and over the last twenty years the Austrians have shut down all of the reactors in Austria
The United States is experiencing a recession and Congress decides to adopt an expansionary fiscal policy to stimulate the economy.
the mainstream theory of the business cycle, is the most common source of reciession: a decrease in aggregate demand, a decrease in aggregate supply, or both.
Clarke's workers are highly skilled artisans with a great deal of job mobility. What impact would the wage increase have upon the firm's employment.
Do protectionist policies benefit producers, consumers, workers, or the government
Trace out exactly where this 100 increase in income goes in the second round and compare to our simpler treatment with a closed economy and lump sum taxes.
The equilibrium quantity increase or decrease depends on Demand
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