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Adam Smith was a product of the Scottish enlightenment. Why is this important? Summarize his political-economic vision and his main contributions including his theory of moral sentiment, the division of labor and its implications, his theories of value and distribution, and his understanding of capital accumulation and the state.
In year 2016, ABC Corporation earned $68 million from which 35% was retained for investments and the rest was payed as dividends. If during the same year, shares of ABC stock was traded at $38 per share and if 52 million shares of its stock was ou..
A monopsony firm will not pay as much for factors of production as will a firm in a competitive market for inputs. Graphically, demonstrate the equilibrium solution for the monopsonist and explain why this is different than the competitive solution.
The World Bank Doing Business Indicators measure the extent of business regulations in countries around the world. Compare the U.S., France, Japan, Brazil, and Nigeria in terms of how easily contracts are enforced, how property can be registered, and..
How did the goals of the classical gold standard and the goals adopted by the Bretton Woods conferees differ (Include a discussion of priorities for IB and EB)? How were the IB goals for the BW conferees expressed in the structure of the BW system? E..
Explain how does the existence of money reduce the costs of making transactions, relative to a society based entirely on barter.
A firm purchased some equipment at a very favourable price of $30,000. The equipment reduced costs by $1000 per year during 8 years of use. After 8 years, the equipment was sold for $40,000. Assuming interest at 9%, did the equipment purchase prove t..
Demand for microprocessors is given through P=35-5Q, where Q is the quantity of mircochips. The typical company total cost of manufacturing chips is Ci=5qi, where qi is the output of company i.
In August 2008, Mexican Pesos ere trading at $0.10 on the foreign exchange market. By November, they were down to $0.07, a decline of 30%. Explain the fall in the price of a Peso using supply and demand curves. In words, explain the rise in the price..
According to the Heckscher-Ohlin model, two countries can equalize wage differences by either engaging in international trade in goods or allowing skilled and unskilled labor to freely move between the two countries. Discuss whether this is true or f..
The ________ suggests that when real GDP equals potential GDP, quantity of money increases and brings equal percentage in the price level. Velocity of circulation, equation of exchange or quantity theory of money
Explain why would a chain such as Marriott tend to own its hotels in resort areas, such as national parks, where there is little repeat business, and franchise in downtown areas.
Two firms, A and B, have complete control of the supply of mineral water and both have zero costs. The market (inverse) demand function is given by: P = 200 – 10Q, where Q = qA (output of seller A) + qB (output of seller B). Find the Cournot solution..
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