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Three women are having breakfast: the CEO of a life insurancecompany, the CEO of a mortgage company, and a retired CEO. The morning paper has a headline:“Inflation rates expected to rise sharply!” For whom is this good news, and for whom is it badnews?
If we do engage in foreign trade, should we limit foreign trade to nations that engage in "fair trade" by giving us access to their domestic markets and reciprocal import tariff reductions that mirror our tariff reductions on our imports from them?
(a) Indicate whether this production function exhibits constant, increasing, or decreasing returns to scale. (b) Does the production function exhibit diminishing returns If so, when does the law of diminishing returns begin to operate.
Explain how can a domestic market be protected. If a country had protected domestic market, what would be the likely effect on its balance of trade.
Assuming there is no change in demand or the firms cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, quantity supplied by each firm, and the total quantity supplied to the market.
Illustrate what will happen to the equilibrium level of income if investors become optimistic about the country's future and raise their investment.
International Drilling Company segments its foreign markets by the income levels of a country's population. This firm segments on what basis?
a nation to have commercial relations with other countries
A local hardware store is trying to decide whether to stay open. They have found that their industry is extremely competitive and profits have shrunk considerably. Knowing that you have taken an economics course the owners have asked for your opin..
Show the first and second order condition for profit maximization. Illustrate what is the price elasticity of demand faced by this monopolist.
Given the following variable in open economy aggregate expenditure model, autonomous consumption= 200, autonomous investment=200,
Illustrate rate of growth in fuel costs justifies going ahead with the insulation plan? Make sure that the rate of growth and the discount rate are aligned in terms of periodss.
Describe developing countries and how they differ from industrial market economies. How can international trade aid development?
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