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Tokyo's streets are characterized by a plethora of vending machines-dispensing everything from soft drinks, candy bars, and cigarettes to magazines, personal toiletries and beer. Unlike other major cities such as New York and London, virtually every downtown street corner seems to have at least one vending machine. Relying on the concept of opportunity cost, explain why vending machines are so prevalent in Tokyo versus more traditional purveying mechanisms such as newstands and grocery stores.
If offshore assembly provisions were extended to include more goods and services, what would this do to the actual level of protection provided by a nation's nominal tariff schedule? Describe your reasoning.
Traders in asset markets suddenly learn that the interest rate on dollars will decline in the near future. Use the diagrammatic analysis of this chapter to determine the effect on the current dollar/euro exchange rate, assuming current interest ra..
Suppose last year's real GDP was $7,000 billion, this years nominal GDP is $8,820 billion, and GDP-deflator for this year is 120. Determine the growth rate of real GDP?
China and Japan can manufacture calculators and noodles using land and capital in a competitive market. To make one calculator 2 units of capital and 1 unit of land are required, while 1 lb of noodle production needs 1 unit of capital and 2 units of ..
In general, the farther a dairy farm is from a large urban area the lower the percentage of output devoted to fresh milk. This occurs primarily because A) land costs are lower farther from the urban area. B) milk is more perishable than butter.
JetSet Travel, has been hugely successful in the distribution of stylish, comfortable shoes for travel. JTI sells its items to approximately 4000 retail accounts in the U.S. and a mix of independent distributors,
The National Research Council conducted a study of the U.S. aircraft industry, which stresses the importance to airplane manufacturers of serving the entire world market. As evidence, the council presents the following graph: The curve shown in t..
In one day, Canada can manufacture either 200 tonnes of wheat or ninety tonnes of copper ingots. In one day, Chile can manufacture either 120 tonnes of wheat or 175 tonnes of copper ingots.
Determine if direct exporting, foreign direct investment, or licensing would be the best way to get the product to buyers in that foreign country.
Calculate Jill's economic profit and what makes economic profit different from accounting profit and find the profit- maximizing price and quantity in each market.
Based on your reading, which market structure is more applicable for the market for building commercial aircrafts, when there are two major manufacturers of the commercial airplanes and little possibility of entry by new firms:
The United States Bureau of Labor Statistics classifies people in the U.S. into three broad groups based on their employment status: those who are employed, those who are unemployed and those not in the labor force.
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