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In order to protect consumers, the United States has taken action to restrict the imports of certain Chinese goods, such as toys that contain lead and seafood that does not meet certain health standards. Some say that this is a double standard. If the United States is willing to restrict goods on these grounds, shouldn’t there be restrictions on the import of goods produced with badly paid labor? Is this argument valid or invalid? Why? Explain a political argument for both sides of this argument.
A local car dealer is advertising a 24 month lease of a sport utility vehicle for 520 payable at the beginning of each month. the lease requires a 2500 down payment plus a 500 refundable security deposit that is refunded at the end of the 24 month le..
With the aid of a diagram explain the difference between monopoly price, average cost pricing, and marginal cost pricing of a natural monopoly. Which is the most efficient and why
Suppose a firm has a constant marginal cost of $10. The current price of the product is $25, and at that price, is it estimated that the price elasticity of demand is -3.0. Is the firm charging the optimal price for the product?
Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is $5,000 and ƒ = 6% per year thereafter. Find the equivalent uniform gradient amount over the same period if the initial value of the cash flows at the e..
Explain the Krugman Imperfect Competition Model of intra-industry trade in automobiles, and what the model means. Use diagrams to demonstrate the model in autarky and in free trade, and to show the existence of gains from trade.
According to the New York Times (11/18/06) the number of car producers in China is increasing rapidly. The newspaper reports that “China has more car brands now than the United States.” But while car sales have climbed 38% in the first three quarters..
Consider a Solow economy with the following Cobb-Douglas production function: The capital share of output (a) is 25%, population growth (n) is 1.5%, and the depreciation rate (δ) is 4%. The economy is in steady-state with a growth rate of output per ..
Evaluate the fundamental reasons why price and utilization economic factors in the healthcare setting influence competitive market status in regard to supply and demand for health care services.
Suppose that currently the government provides everyone with a guaranteed income of $10,000 per year, but this benefit level is reduced by $1 for each $1 of work income. The government is considering changing this policy so that the benefit level is ..
Just prior to a professional baseball spring training session, you are asked to assess the probability that a particular baseball team will win the coming World Series. How would you go about making this assessment? In what sense is this assessment ..
Since 2009, the federal reserve has been unable to stimulate the US economy sufficiently enough to generate 3-5% annual growth in GDP, despite being short-term interest rates at zero and instituting a massive quanta give easing program. why has monet..
The Economic Policy Institute periodically issues reports on wages of entry-level workers. The institute reported that entry-level wages for male college graduates were $21.68 per hour and for female college graduates were $18.80 per hour in 2011.
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