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Some years ago a critic of what economists were saying about the U.S.'s international trade position argued that it was essential that the U.S. as a country should run a trade surplus and maintain a healthy positive net inflow of foreign financial capital from abroad, i.e., the supply of financial capital from foreigners should be a high positive number. Explain why this is impossible!
If inflation was the most significant problem facing the economy, what would be the appropriate monetary policy response?
Suppose an economy produces three goods - Economy with three goods (rice, bananas, and strawberries), Draw its PPF assuming constant opportunity costs. Then draw it with increasing opportunity costs
Economists tend to favor revealed preference methods of valuing non-marketed goods like environmental quality and natural resources. What are two reasons why revealed preference methods may lead to poor estimates of these values?
Gouge-em Cable Company is the only cable television service company licensed to operate in Backwater County. Most of its costs are access fees and maintenance expenses. These fixed costs total $640,000 monthly. The marginal cost of adding another sub..
Suppose that Canada decides to peg its dollar ($C, or the loonie) to the U.S. dollar at an exchange rate of $C1 = $US1. If the U.S. IS curve shifts to the left, will there be pressure for the Canadian dollar to change in value against the U.S. dollar..
Adam Smith favors a policy of laissez faire in managing economic activities. Why? Economics deals with the efficient use of resources? Why? Marginal analysis tends to produce more optimal outcomes when working with scarce resources. How?
Illustrate what was the marginal cost of the 251st unit of output.
Write down a formula that express the marginal product of labor in the short run as a function of the amount of labor used.
Representatives were to logroll (trade votes) to get their preferred policy to pass, what would be the result. What are the total benefits from each project.
A single firm’s innovations in production technology often benefit the production of other firms, because these other firms learn about the new technology and can use some of the ideas in their own production. Why does this positive externality creat..
In 2010 in the country of Arlandia government debt was zero. You know that the government revenue for 2011 was $344, for 2012 was $360, for 2013 was $380. The government outlays for 2011 were $197 and for 2012 were $237. If you know that government d..
What are the advantages and disadvantages of sourcing from China as opposed to India? What types of products or services are best suited for sourcing from India versus China? Why?
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