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1. What would you suggest we do to reduce our trade deficit?
2. We run huge trade imbalances with two countries. Explain the cause of the imbalances.
3. Should we be worried about our trade deficit? Explain why or why not.
4. What is the economist's case for free trade?
5. Practical Application: Can you think of any valid reason for tariff protection? Try to make a case for it.
What is the required policy mix? Use an IS-LM diagram to show your policy proposal.
Track consumption and investment around 2000 and 2001. From Table 1.1.1, which variable had the bigger percentage change around this time? Compare non-residential fixed investment with overall investment. Which variable had the bigger percentage c..
Investors know for sure that the CEO of firm A will undertake an investment that will yild $100 million profit next year and then $2 million each year after that for 10 years. They also know for sure that the CEO of firm B will undertake an invest..
b) What will be the firm's profit with perfect price discrimination c) To implement perfect price discrimination you will have to use salespersons. What is the maximum amount total you will spend on salespersons
Prove that if the entrepreneur has turned down production with some technique a' at date t, he will never accept technique a' at date t + s, for s > 0 (i.e., he will not accept it for any possible realization of events between dates t and t + s).
What type of risk does the standard deviation and CV measure?
On page 46, Dave talks about two kinds of losses from tariffs. To which two areas on the tariff graph do these losses represent?
for Product X. Qx = 10,000 - 100 Px + 0.5 Y - 1000 r (3,000) (20) (0.3) (105) Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate (given in decimals, e.g., 0.02 or 0.05) The standard ..
The Federal estate tax redistributes wealth in two ways: by encouraging charitable giving, which reduces the taxable estate, and by heavily taxing extraordinarily large estates and using the proceeds to fund government programs. Do you favor repea..
How do government statisticians determine the poverty rate? How could the poverty rate fall while the number of people in poverty rises?
1. short answera. agree or disagree and justify your answer if the distribution of u in a population regression model
Consider the market for rainbow sandals. Suppose average household income increases from $44,000 per year to $61,000 per year. As a result, the demand for rainbow sandals increases from 427 to 535.
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