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Suppose two countries E and F use many inputs. Country E exports tractors and imports televisions. Assuming there are no economies of scale, which of the following statements is true?
a) If the countries did not trade, then E would have a lower opportunity cost for tractors.
b) Even though there is trade, E has a lower opportunity cost for tractors.
c) E is sure to produce no televisions while F is sure to produce no tractors.
d) Neither country can consume at a point outside its production possibility frontier.
If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax.
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GDP rises from 6 trillion in 2001, base year, to 12 trillion in 2008. the gdp deflator is 180. Find real GDP in 2008. Find the percentage increase in real gdp between 2001 and 2008.
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A possible international monetary regime consists of a world central bank conducting monetary policy and issuing a single currency used throughout the world. Elucidate what would the advantages and disadvantages of such a system be.
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two students are to take an exam an the professor has instructed them that the student with the higher score will
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Calculate the multiplier and the level of equilibrium income and calculating the budget surplus
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