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Free Trade : key informaiton
1. What are two reasons economists support free trade?
2. One of the basic economic laws is "the law of one price." It says that given certain assumptions, one would expect that if free trade is allowed, the prices of goods in countries that trade with each other should converge.
a. Can you list what three of those assumptions likely are?b. Should the law of one price hold for labor, also? Why or why not?c. Should it hold for capital (financial resources) more so or less so than for labor? Why or why not?
Consider a monopolist facing demand curve Q = 100 - P. MC=AC=$20. Find out the monopoly price, profits, and consumer surplus.
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.
Patients who need the surgery must pay for it themselves. Among which of the surgeries has the lower inflation rate.
Assume that a employee's skills can be summarized by the number of efficiency units she owns and the distribution of efficiency units in the population
Illustrate the main kinds of information and data needed in order to evaluate a capital.
Under the concept of equilibrium whenever dealing with quantity and price.
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Explain why do people who work at investment banks earn so much. What is the justification for capital requirements imposed by bank regulators.
You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia.
A large rear dump truck working in a coal mining operation under good conditions has a present purchase price, compute the estimated repair cost per operating hour.
A team of minor league baseball is trying to predict ticket sales for the upcoming season and is considering changing ticket prices.
Suppose that the economy is short of its full-employment (potential) level of GDP, assumed to be $14,000 billion, by $500 billion.
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