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According to the Wall Street Journal, the US Department of Commerce has "decided that display prices by Japanese companies in their home market may be artificially low. Rather than comparing US prices with Japanese prices, Commerce is now coming up with their own 'fair' price based on a formula accounting for the costs of materials, research, and return on investment." Do you think this procedure is more or less likely to result in imposition of antidumping duties than one in which prices charged by Japanese displays in the US are compared with actual prices for the same displays in Japan? Why? Which procedure would you prefer to see used? Why?
It is observed that in an area with a lot of illegal immigration, the average wage of native born workers actually increased. Explain how this could have happened, using economic logic. Also, judge whether this is good or bad for the local economy.
Suppose that the production of $1 million worth of steel in Mexico requires $100,000 worth of taconite. Mexico's nominal tariff rates for importing these goods are 20 percent for steel and 10 percent for taconite. Given this information, calculate th..
Discuss how changes in household disposable income, housing and stock wealth, and debt-generated movements along and shifts in the U.S. saving function. Explain these effects, assuming other things were equal.
Eddie's Precision machine shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $20,000. what is the present w..
Project B will return a profit of $2.00 of conditions are poor, a profit of $3.00 if conditions are good and a profit of $4.00 if conditions are excellent. The probability distribution of conditions is as followed.
Kristina does not want to pay him $1000 on delivery. Can the baker sue Kristina for payment of the cake? What remedies are available to him?
Illustrate what is the level of consumption at the equilibrium level of income.
Draw 4 budget lines for food and shelter as directed. The consumer has $500 income, faces an absolute price for shelter of 10, and a budget line slope of -5. (Shelter is on the horizontal axis.)
Graph a Monopoly. Compare the price, quantity, and ATC of a monopoly with a perfectly competitive firm. Who is more efficient and why?
In developing countries, as average wage levels rise with the country’s growth it is often observed that: the labor force participation rate of adults rises but. How do labor economists explain these empirical facts?
The long run is defined as:
When quantity supplied increases at every possible price, we know that the supply curve has
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