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Q1. People sometimes talk about ‘twin deficit' where the twins are the current account and the government budget deficit. Carefully explain how these two deficits are related economically so that changes in one are reflected in changes in the other.
Q2. "McDonald's has a monopoly for selling Big Macs in both the U.S. and China. In the U.S. the elasticity of demand is -3. In China, the elasticity of demand is -4. The marginal cost of a Big Mac is $2. Resales are not possible. What price is charged in each country?"
In this exercise, you will find actual points on the combined PPC of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together.
Calculate the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect..
Elucidate how should Microsoft market long distance telephone services in the new wireless telecommunications devices which also include Internet portals.
In your opinion, discuss when it makes sense to forego purchasing car insurance (assuming the state did not require it). In your answer, use moral hazard and risk aversion to describe your decision.
Estimate the relative importance of economies of scale and comparative advantage in causing the following:Much of the world's most expensive wine comes from France.
Elucidate what is the calculation for a stock with a beta of -03, 07 and 1.6. Show calculations in 3 separate answeres.
If there were 2 million unemployed Thailand had a job-finding rate of 15% per month, how many people would lose jobs each month.
Explore in particular how the two companies respond to the macroeconomic conditions in terms of their.
Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.
Many people believe that using plant-derived fuels or biofuels to power combustion engines is a relatively new and innovative concept.
1. if the 4 firm concentration ratio of an industry is 75 what does it mean?2. explain in game theory how payoff
what happened to real output? by how much would the price index have had to rise for real income to remain constant?
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