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Q1. Suppose that on January 1, the price of one hundred yen was $0.80 and PPP held. Over the year, the Japanese inflation rate was 5 percent and the U.S. inflation rate was 10 percent. If the exchange rate at the end of the year was $0.90, does the yen appear to be overvalued, undervalued, or at the PPP level? Explain your answer.
Q2. It has been noted that during World War II, Germany made a critical mistake by having its formidable Tiger tanks produced by locomotive manufacturers while the less formidable U.S. Sherman tank was produced by American car manufacturers. Use the product-process matrix to explain that mistake and its likely result.
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.
Solve for the equilibrium interest rate. Solve for equilibrium value of consumption and investment.
A county is considering using a piece of park land for one of two alternative recreation projects. Project S would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
A flat tax plan allows individuals to deduct a standard allowance of $10,000 from their wages. Assume that the flat tax rate is 12%. Calculate the amount of income tax and the average tax rate if you were earning.
What happens to the demand for Sara's sweatshirts in long run. In long run, what happens to Sara's economic profit.
Who has the comparative advantage in what product. Once they specialize, how much does output increase. What are the terms of trade if the United States trades 1 can of soda for 5 units of clothing.
The social security system levies a tax on workers and pays benefits to the elderly. Suppose that Congress increases both the tax and benefit.
The biggest difference between Microsoft and software retailers is the market structure in which they operate.
Arnett is appearing for a new Web portal to utilize to access information which interests him on Internet.
One day you realize you're tired of smelling like refried beans all the time and begin thinking about starting your own business. After doing some investigation you decide to spend 15 hours per week running a photocopy service in your dorm.
Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female-dominated jobs.
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
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