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Today we see a lot of activity within the international trade arena as the U.S. trade deficit has soared to a record high. Trade is designed to create bigger market opportunities, so why is the balance of trade so out of balance for the U.S.? Is it bad to have a trade deficit, or does it not matter?
Suppose she is offered a new job that would pay her $15,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits.
Ambassador Automobiles (AA) is not sure of their order of 100 units to Diversitek (D). Based on the market research, there is only a 35% chance that AA purchases the order of 100 units of SS from D and a 65% chance that AA purchases the order of 50 u..
Trace out exactly where this 100 increase in income goes in the second round and compare to our simpler treatment with a closed economy and lump sum taxes.
What is a counterfactual, and what is the fundamental problem of causal inference? How does random assignment of a treatment address this problem? Describe David Freedman’s views on whether applying econometric techniques (e.g., regression analysis) ..
A new technological line of gasoline production has the following parameters: Expected annual inflation is 5%. If current interest rate is 10%, what is the unit cost of gasoline in dollars per litre in real terms?
Suppose David buys cheese (X) and fruit (Y) with his income of $48 per week. Suppose the price of cheese has recently risen from $4 to $6 per pounds, while the price of fruit has fallen from $8 to $6 per pound. Before the price changes, David had bee..
Elucidate which of the following events would cause the price differences in these letters to get smaller.
When bankers hold excess reserves:
Illustrate what is the minimum number of words per minute a student would have to read in order to get the award
One year of life is then worth a little less than $67,000. Actually, if you are talking of Quality adjusted life year, your last calendar year might be worth considerably less than one quality adjusted life year ignoring that. They can’t spend more t..
Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, consumer optimism or pessimism abou..
Demand: P=50-QD and Supply: P= 25+QS The government decides to impose a price floor of $40. Illustrate graphically the different economics effects of such intervention in this market. Calculate and compute the deadweight loss generated by the governm..
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