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Assume a two-country world containing country A (whose currency is the dollar) and country B (whose currency is the peso). In this context, and using relevant graphs, explain how a depreciation of the dollar against the peso (for example, a 10% depreciation) conceptually affects the quantity of A’s exports to B and the quantity of A’s imports from B. (You can use either dollars or pesos on the vertical axes of your graphs. Also, assume that “pass-through” is complete.) Then carefully explain why economists say that such a depreciation could actually worsen the trade balance (or current account balance) of country A and indicate the Marshall-Lerner condition. Finally, define the “J curve” and give a very brief explanation of why it has the shape that it does.
Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus or at university events. What is the beneficiaries of this deal.
You operate a small but popular and profitable restaurant/bar in a college town. Discuss at least two pricing strategies you can use to increase your revenues and analyze them in terms of their ability to generate additional profits.
Borrowing from Kalleberg, Lazonick, and Meyerson’s “How the American South…”, and “Forty-Year Slump,” compare and contrast the two macro employment systems (1945-1975 and 1975-present) in terms of key employment outcomes and indicate which system und..
The president of your college believes that the cost of a college education is far too expensive for students to afford and has decided.
In response to continuing financial difficulties of their employers, unions representing workers at U.S. automakers have accepted a two-tiered wage schedule, by which new hires are paid less than the standard union wage. How does this change affect t..
A hurricane hits the Gulf Coast and completely shuts down much of the refining capacity for some time. Consider the market for gasoline. Draw supply and demand graph showing the initial equilibrium, any supply and/or demand shift, and new equilibrium..
Assume that an individual has 80 hours per week that can be distributed between two normal products work and leave ( leisure ) . Draw a bid curve for an individual who can earn a maximum of £ 10,000 per week if the individual does not have any leave ..
Let the consumer begin in utility maximizing equilibrium at point A on indifference curve I. Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II. Write the linear de..
q1. consider the firm with a single factor of production defined implicitly by the relation z q3 4q where z is the
Describe the differences between the substitution effect of a wage increase and the income effect of a wage increase
Nash equilibrium is:
Why is a solid national security structure so important to the international political economy? Discuss and compare two nations one where the security structure is strong and other where it is not strong and analyze their international trade success,..
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