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1. Imagine that two identical countries have restricted imports to identical levels, but one has done so using tariffs while the other has done so using quotas. After these policies are in place, both countries experience identical, balanced expansions of domestic spending. Where should the demand expansion cause a greater real currency appreciation, in the tariff-using country or in the quota-using country?
2. Explain how the nominal dollar/euro exchange rate would be affected (all else equal) by permanent changes in the expected rate of real depreciation of the dollar against the euro.
Individuals exchange commodities subject to the cash-in-advance constraint \(pz
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Suppose that the American imports of wine are a small part of total world wine production, draw a graph for the United States market for wine under free trade.
Due to the lack of profits, many growers have stopped production and the output of coffee beans has fallen from 400 tons per year to 250 tons per year.
describes the market structures of oligopoly and monopoly in terms of number of producers, types of products produced, barriers to entry, and whether profit can be made in the short or long run.note whether oligopolies and monopolies are bad or..
What will be the effect of the following events on the market for French wine and the quantity consumed? Distinguish between the short-run and the long-run impact.
Discuss and explain wage determination in a labor market in which workers are unorganized and many companies actively compete for the services of labor.
Examine who the winner and loser would be - either the borrower or the lender in the given scenario. Provide support for your response.
utility if a function of income (I), given by: \(U = 101\) as long as I is less than or equal to 300. If I is greater than 300, your utility is a constant equal to 3,000. Suppose you have a choice between having an income of 300 with ce..
what happens to the AFC per paper, the MC per paper, and the minimum amount that you must charge to break even on these costs?
Use supply or demand graphs to examine shifts in supply and demand and resulting changes in market equilibrium in the condition below.
Scottsdale Print Shop expects to have an annual taxable income of $300,000 from its regular business over the next two years. The company is also considering the proposed acquisition of a new printing machine to expand current business to offer in..
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