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Many manufacturers of clothing and other consumer goods open stores in outlet malls where they charge much lower prices than they charge in their own stores located within cities. Outlet malls are typically located a considerable distance from major metropolitan areas, and stores in them typically charge much lower prices than do stores located within cities. Given that both sets of stores are often owned by the same firm, explain this price discrimination based on likely differences in the price elasticity of demand between consumers in the two types of stores.
Export and import practices are at the heart of a country’s trade balance with the rest of the world? Why do some countries subsidize their exports when WTO regulations do not allow that? Are global companies such as Intel, Cisco, Microsoft, oracle, ..
Perfect and imperfect multicollinearity: Define perfect multicollinearity either mathematically or explain it intuitively. Explain how imperfect multicollinearity differs from perfect multicollinearity (you may, but don’t have to, use examples).
In California, a welfare recipient can earn $225 without having benefits reduced. Beyond $225, benefits are reduced $.50 for every dollar of earnings. Consider Elizabeth, a resident of California, who can earn $10 per hour. If she does not work at al..
Suppose a tax cut affected aggregate demand and aggregate supply. The shift in aggregate supply would make the
Which of the following statements is true about a competitive market? A competitive market must have a physical location. has so many buyers and sellers that no one can influence the price. includes markets for goods and services but not for inputs. ..
A country has a fixed exchange rate and pursues and expansionary monetary policy. Explain, in word, any symbols what will happen. How is external balance affected? Is monetary policy effective?
The government finds that a lot of employers are prejudiced, and discriminate against foreign workers. The secretary of labor offers the President three options to deal with this problem: Arrest all employers who are hiring foreign workers at less th..
China applies state capitalism which manipulates market activities to achieve political goals. Describe the political and legal systems in China and their effect on MNEs (multinational enterprise) doing business in China.
Which of the following is a rate that should theoretically serve as a floor for the Fed funds rate? A dealer is said to be running a "matched book" if. An increase in the supply of reserves in the banking system leads to an increase in the Fed funds ..
You and a friend have each spent $8 on a non refundable movie ticket. Ten minutes into the movie, you both decide that the movie is horrible. Your friend says that you should stay and watch the rest of the movie because you “should get your money's w..
For this assignment you need to evaluate one idea and how you would implement your stimulus strategy. Food for thought
Assume in this country they save 20% of their income, population grows at 3% every year also depreciation of capital occurs at 10% every year.
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