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Explain how foreign exchange rates are determined. How do changes in interest rates, inflation, productivity, and income affect exchange rates? What are the advantages and disadvantages of a weak versus a strong dollar for imports, exports, international and domestic markets?
In "The Consequences of Mr. Keynes," James Buchanan and Richard Wagner argue that the "unwritten fiscal constitution" of an annual government balanced budget helped restrain the growth in government, but the Keynesian argument for a balanced budge..
If offered the choice between a 10 percent increase in her hourly wage rate, which would Helga choose? Assume that she is free to choose her hours of work.
Illustrate what would happen to the profit maximizing level of output if the market price suddenly rose to $54 per case. Explain why the output level changes.
As weekend prices skyrocket more people will play golf during the week and eventually the weekend prices will drop and weekday prices. Differentiate among weekday and weekend prices.
Top four firms in Industry B have market shares of top four firms in Industry B have market shares of 15,12,8 and 4 percent, respectively. Calculate four-firm c0ncentration ratios for two industries. Which industry is more concentrated.
Illustrate what is the maximum amount he or she would pay for insurance against a 50 percent chance of losing 3,600.
What is the most you would be willing to pay for one of these licenses, if you know that you get to choose your level of output before the other licensee does, also knowing that your choice is observable by the other licensee?
Past history says that tomorrow's demand for lettuce averages 250 boxes with a standard deviation of 34 boxes. Explain how many boxes of lettuce should the supermarket purchase tomorrow.
What is the nominal GDP in 2011? What is the real GDP in 2011 (using 2010 prices)?
Illustrate wow would the existence of such insurance affect the amount of clothing that people buy. How would you evaluate this change in behavior from the standpoint of economic efficiency.
Illustrate what role does comparative advantage play in trade among member nations
Using the PPF analysis, explain what this means, the consequences of this behavior with regards to economic growth, and what the government could do to rectify the problem.
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