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1. Explain how increasing returns to scale in production can be a basis for trade.
2. If the foreign export supply is perfectly elastic, what is the optimal tariff that Home should apply to increase welfare? Explain
3. If the foreign export supply is less than perfectly elastic, what is the optimal tariff that Home should apply to increase welfare?
Assuming that the income effect is negligible, how much will he be hurt if the cost of strawberries goes from $1 a pint to $2 a pint.
Compare and contrast a public good versus a private good. What are the principal characteristics of each? What are the two key characteristics of public goods? Is there a free rider problem when it comes to public goods? Why? Do you consider your loc..
Assume Okun's law holds also a one percent (%)age point rise in the unemployment rate reduces real output by 2% of full-employment output. The expectations-augmented Phillips curve.
After the first course in biology or chemistry, many decide to major in something other that the natural sciences. which of the 12 principles is at work here?
In the typical signalling model, it is assumed that the costs of acquiring an education are higher for low-ability than for high-ability workers. Suppose that the government steps in and subsidizes low-ability workers for the higher costs they incur ..
1. a woman and her son are debating about the average length of a preachers sermons on sunday morning. despite the
Benny decides to buy living room furniture worth $3000. He plans to finance the furniture for two years. The furniture store tells him that the interest rate is only 1%/mo/mo and his monthly payment is computed as follows:
q1. assume that restaurant charges 11 meal for 180 meals as well as that the marginal cost of the 180th meal is 8 in
If you deposit RM3,000 with each bank, illustrate what will be the difference in the two bank account balances after two years.
As part of their chores on Saturday mornings, they have to clean the bathrooms also wash the floors of the house while their parents go grocery shopping.
One kind of gain from specialization is that
Should we worry or lose sleep over our $16 trillion public debt? If there are legitimate concerns related to our increasing public debt, what are they and why should they be of concern?
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