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Until a few years ago, U.S. cars exported to Japan had the driver controls on the left side (as in the United States). The Japanese (like the British), however, drive on the left side of the road, so Japanese cars sold in Japan have the driver controls on the right side. Sup-pose the Japanese tried to sell their cars in the United States with the driver controls on the right side. What impact would this likely have on their sales in this country? Do you think the unwillingness of U.S. carmakers to put the driver controls on the “correct” side for exports to Japan had any effect on their sales of cars in that country?
The economy begins in long-run equilibrium. Then one day, the president appoints a new chairman of the Federal Reserve. This new chairman is well known for her view that inflation is not a major problem for an economy.
Walras Equilibrium with two consumers and two commodities, given endowments and preferences for both consumers.
Elucidate what data or other factors that monetary policy makers, firms, and workers might analyze in attempting to determine if the decline in the real exchange rate is temporary or will persist.
I have noticed that politicians continue to advocate an increase in the minimum wage. Politics and political manoeuvring aside, is there an economic reason as to why a higher minimum wage would benefit the economy?
Other things equal, increasing home prices tend to:
To produce that many donuts weekly, company uses 1,000 pounds of flour, which must be delivered by 5:00 am every Friday morning. Explain how should manager of company acquire flour. Explain."
For each of the following situations, decide whether the bundle Lakshani is considering optimal or not. If it is not optimal, how could Lakshani improve her overall level of utility? That is, determine which good she should spend more on and which go..
q1. suppose china produces both agricultural and capital goods. draw and show the change in the ppf when an outbreak of
If insurance premiums are going to be set below the actuarially fair level for a certain group, who will likely be targeted to make up the difference?
Use the calculator to answer the question below. With a new government tax of $20 per carton, illusrtae what is the equilibrium quantity of cigarette cartons.
From the e-Activity, identify the company, the accounting impropriety or illegality, how it was detected, the outcome, and propose a strategy that might have prevented the situation. Indicate how the strategy should be implemented.
Monopolies can sometimes find themselves in difficult financial situations that lead to losses. Suppose Mr. Burns Power Company has a monopoly for providing electricity in Springfield. What happens to the market when Mr. Burns raises the price he cha..
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