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Q1. In signaling model, assume high school graduates are paid a stream of income whose present value is $200,000. College graduates are paid a stream of income whose present value is X. College education costs higher-productivity workers $50,000 and lower-productivity workers $150,000. What value of X will cause higher-productivity workers to go to college and lower-productivity workers to not go to college?
Q2. In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the "politics of protectionism". We have learned in previous chapters that trade protectionism "distorts" the benefits and costs to the nation.
Within the context of the following discuss the following:
The politics of production versus employment: How does this political argument continue to influence our national discussion on NAFTA (North American Free Trade Agreement)
Is the US solar industry an "infant industry" that requires protection from Chinese government subsidies?
The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market
Gains from trade will result if a country specializes.
For each level of output except zero output, calculate the average variable cost, average total cost and average fixed cost.
Depict the von Neumann-Morgenstern utility index u in a diagram
Compare and contrast the way Classical and Keynesian theory determine the Demand for Money and how it is related to the Money Supply
The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
Calculate gross national product and net national product
What are the components of aggregate expenditure. What determines the slope of the aggregate expenditure line.
Provide a rational for why you feel the new target market and pricing strategy would be successful and the likely impact to the profitability of the firm.
Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
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