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Suppose that a particular country currently does not allow international trade in cotton. Also, the world price of cotton is higher than the domestic price of cotton. If this country opened to international trade and allowed free trade cotton, domestic producers of cotton (choice answers are: would not or would) be better off.
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..
Cartman and Kyle are castaways on an island and spend their days picking papayas and mangos. Cartman has a comparative advantage in picking papayas. Kyle has a comparative advantage in picking mangos. Use the infinite line tool to draw the linear pro..
(Assume a two good world) Explain why it is that we allow for individuals to have different preferences, but make the claim that when acting rationally, all individuals will choose a consumption bundle where they have the same marginal rate of substi..
Why are commitment problems particularly widespread in international relations?
Why do members of the House and Senate follow complex, arcane rules and precedents in processing legislation even when such devices keep majorities from getting their way?
The supply and demand curves are: Qs = -800 + 15p and Qd = 3200 - 25p. Solve for the market equilibrium. Now suppose a tax of $20 per unit is imposed on consumers. What are the new equilibrium quantity, buyer's price and seller's price? What is tax r..
Describe what makes that decision unethical. Present an alternative ethical and legal solution to the decision focusing on the organization's responsibility to its stakeholders.
How might you construct a measure of the change in the price level. Illustrate what additional information might you need to construct your measure.
Consider our competitive market described by the supply and demand model. If there are no externalities, explain why economists describe the competitive equilibrium as efficient.
How might advertising make markets less competitive? How might it make markets more competitive? Give the arguments for and against brand names.
Impantable cardioverter defibrillators reducing the risk of cardiac arrest and saving lives is an example of a. cost-benefit analysis b. cost-utility analysis c. innovative use of technology d. research and development
Consider a company that produces dog toys. The only resources that the company uses to produce these toys are Capital (i.e. machines and raw materials) and Labor (i.e. workers). The company sells 10,000 toys a month at $100 per toy. Write down the to..
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