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Question: Who's Hiding under the U.S. Umbrella? Students of the Cold War learn that, to deter possible Soviet aggression, the United States placed a "strategic umbrella" over NATO Europe and Japan, with the United States providing most of their national security. Under President Ronald Reagan, the United States spent 6 percent of GDP on defence, whereas the Europeans spent only 2 to 3 percent and the Japanese spent only 1 percent, although all faced a common enemy. Thus the U.S. taxpayer paid a disproportionate share of the overall defence spending, whereas NATO Europe and Japan spent more on consumer goods or saved.
a. Explain the free-rider problem described in this news clip.
b. Does the free-rider problem in international defence mean that the world has too little defence against aggression?
c. How do nations try to overcome the free-rider problem among nations?
In September 2013, the exchange rate was $1.35 per euro. Was this change in the dollar-euro exchange rate good news or bad news for U.S. firms exporting goods and services to Europe? Was it good news or bad news for European consumers buying goods..
The PW of the ATCFs through year k, PWk, for a defender (three-year remaining useful life) and a challenger (five-year useful life).
Provide an example of an airline or aviation firm trying to take advantage of economies of scale. Do you think they are/were successful? In what way?
suppose a women marries her butler. after they are married, her husband continues to wait on her as before, and she conitues to support him as before ( but as husband rather than as an employee). how does the marriage affect GDP
suppose that two players are playing the following game.nbsp player a can choose either top or bottom and player b can
select a nation that has a low per capita income and discuss how the catch-up effect would work for that country.
Chris consumes only 2 goods, Suppose his utility function is U(X1,X2)=X1 1/3,X2 2/3, Suppose P1 =$2,P2= $8 and income(I)=$600 I want to know how to do the problem, so I need to see all the steps it takes to arrive at the correct answers for a,b and c..
for livia coffee and tea are perfect substitutes one cup of coffee is equivalent toone cup of tea. suppose livia has 90
In a closed economy (i.e. one with no foreign trade) the following relationships hold:where C is consumer expenditure, Yd is disposable income.
Firm A is the sole supplier of a certain product. A's marginal cost equals average cost MC = AC = 30, and it faces market demand given by inverse demand function P = 120 0:5Q. Suppose at the moment A produces quantity q = 120 units at price p = ..
"If the cost of input for production (C) increases, the supply curve will shift upward, resulting in a smaller equilibrium quatity and a higher equilibirum.
An entrepreneur has an idea for a profitable project, but she is unsure. In which of the two countries should she invest? Briefly explain your answer.
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