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Q1. Explain how does an increase in transport costs change the gains from trade in Melitz's (2003) model? Are the effects of an increase in transport costs qualitatively different from the effects of an increase in the fixed cost of becoming an exporter? Explain.
Q2. Assume a stream is discovered whose water has remarkable healing power? You decide to bottle the liquid and sell it. The market demand is linear and is given as P=30-Q! The marginal cost to produce this drink new drink is 3$. Illustrate cost would this new drink sell for if it sold in a competitive market? Illustrate what is the monopoly cost of this new drink? Q3. Is there a surplus or deficit in the government budget at the equilibrium level of income? Explain how much?
What can you provide as advice to a manager concerning their choice on the quantity of labor and quantity of capital.
The Federal Reserve Bank of St. Louis maintains a Web page devoted to international economic trends.
Explain how the reduction in supply from the reduced fishing waters will either increase or decrease consumer surplus and producer surplus.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
Suppose that the demand for orange increases. Carefully explain how the rationing function of price will restore market equilibrium.
Explicate why the government expenditure multiplier is different from the tax multiplier.
Explain how would you conclusion vary for winter months, if bad weather formulate it likely for traffic jams on the highway to increase to 6 days per month.
Examine the key factors affecting the demand for and the supply of a good or service
Suppose she is offered a new job that would pay her $15,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits.
Determine the quantity demanded, the quantity supplied, and the magnitude
if the demand for labor is elastic because the demand for labor will decrease more when you have elastic demand than if demand were inelastic.
Use a model of the money market to explain why changes in nominal or money GDP are associated with changes in interest rates.
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