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1. Suppose that a local government decides to provide more funds to the local police department in order for the department to hire additional police officers. Is there an opportunity cost of this action? If so, how would you measure it?
2. Michael Jordan has more athletic ability than most individuals. Thus, he is more productive at most tasks involving physical skill. Explain why then, it is more efficient for Michael Jordan to pay someone else to mow his lawn.
3. Because of the quantity and quality of its resources, the U.S. has an absolute advantage in the production of many goods and services. Does this imply that the U.S. cannot benefit from trading with a developing country that has less productive ability? Why or why not?
4. Explain Ricardo's theory of comparative advantage
Suppose that a perfectly equal distribution of income existed in Disneyland. Which of the reccent residents would have the same income he or she has in present distribution?
Suppose that the price of peanuts falls from $3 to $2 per bushel and that, as a result, the total revenue received by peanut farmers changes from $16 to $14 billion.
Imagine that you are a senior business manager for a U.S.-based MNC. Your directorate has informed you that the organization must outsource its Information Technology
In recent years, consumption spending by households has accounted for about 70% of the total spending (aggregate demand) in the U.S. economy.
What were the major factors that led to the drop In Sony's exports from Japan - In what Other ways has the strong yen affected Sony's bottom line
matt and johnny both purchase pop and chips at the same convenience store. they have different tastes for pop and chips
many proponents of public transit argue that the service should be provided free to the public in metropolitan areas in
Suppose the U.S. is in the midst of a recession and a new president has just inherited an already large public debt.
ECO 201 Unit 4 Homework Assignment. Assignment Direction At the end of each chapter is a section titled "Key Concepts", and next to each concept is a corresponding page where you will find its definition. Please expand on the text's given definition,..
1. a relaxation of u.s. immirgration laws and regulations woulda. further reduce wages in poorer countriesb. turn
Illustrate what happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a NET BUYER of government bonds.
Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example?
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