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Q1. Suppose that the terms of trade of a nation improved from 100 to 110 over a given period of time.(A) By how much did the terms of trade of its trade partner deteriorate?(B) In what sense can this be said to be unfavorable to the trade partner?(C) Does this mean that the welfare of the trade partner has definitely declined?
Q2. Evaluate the following statement;"Managers should specialize by acquiring only the tools needed to operate in a particular market structure i.e. managers could specialize in managing either a perfectly competitive, monopoly, monopolistically also oligopoly firm."
if the demand for labor is elastic because the demand for labor will decrease more when you have elastic demand than if demand were inelastic.
The Federal Reserve Board is considerining changing its target inflation rate. However, they are concerned about the immediate effect on inflation. Find the sensitivity of equilibrium inflation to a change in the Fed's target inflation rate in the..
Dane decides to give up a job earning $100,000 every year as a corporate lawyer also converts the duplex that he owns into a UFO museum had been renting the duplex for $20,000 a year.
Explain what the tax multiplier is and why it is less than the expenditure multiplier. Explain, in your own words, how an increase in investment spending generates a multiplied effect on GDP.
A profit-maximizing firm in a competitive market is currrently producing 100 units of output. Elucidate firm's profits, marginal cost, and average variable cost respectively.
Under what conditions (such as relative costs, position of the demand curve, number of low-cost firms) will the smaller, higher-cost growers be driven out of business?
Which of the following terms express a person who risks his or her financial resources by investing it in the hope of making a profit.
So if trade barrier is reduced the Chinese economy will go down also affects the economy of the whole world. Do you agree or disagree with this argument.
Congress is considering a tax credit program for those who purchase wind or solar-powered products. Explain multiplier concept as it applies in this case.
Illustrate what is an opportunity cost. Elucidate how does the idea relate to the definition of economics.
Define ways MNCs can use to minimise/reduce/manage exposure to exchange rate risk and interest rate risk. Does evidence indicate that firm size significant.
Your friend makes half of your salary and pays 20% in income taxes. Elucidate rate most likely would be your income tax rate.
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