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If two countries have identical production possibility frontiers, then trade between them is likely to be beneficial if:
(a) their supply curves are identical.
(b) their cost functions are identical.
(c) their demand conditions are identical.
(d) their incomes are identical.
(e) their demand functions differ.
If as price decreases by 10 percent, total revenue increases by 5 percent, what is true about demand? In 2014, India substantially increased its import tariff on sugarcane. Which of the following would the model of supply and demand not predict?
What explains the rapid growth in private investment in e-commerce firms in the period 2011–2012? Was this investment irrational? Despite the popularity of Facebook, why was its IPO deemed a failure?
About two-thirds of all households now purchase two or more bundled telecommunications services from the same company (e.g., local telephone, long distance telephone, video, cell phone, Internet, etc.). Explain why consumers frequently prefer bundled..
Prepare the income statement and retained earnings statements for the year and the classified balance sheet at August 31.
A nation with a large current account deficit is consuming more than it produces or living beyond its means. Is this necessary bad? What is your judgment for the United States?
Describe the supply and demand shifts that are occuring. What would happen to the demand curve if the major taxi companies lowered their rates.
For the Cobb-Douglas production function in Problem 6.7, in can be shown (using calculus) that. If the Cobb-Douglas exhibits constant returns to scale (a+b=1), show that Both marginal productivities are diminishing.
Illustrate what kind of gap-inflationary or recessionary-will the economy face after the shock.
Assume your town decides to levy a tax to raise funds for construction, maintenance also other expenses for local schools. Should the tax be proportional, progressive or regressive.
Assuming that my situation is that of other firms, in which of these cases is output similar to short run equilibrium output.
The so-called "recognition lag" associated with fiscal policy is a result of how slowly the U.S. Congress moves. The Social Security program is a retirement system where payments to retirees come from their previous contributions. The more progressiv..
Gold has recently hit record high prices. When adjusted for inflation, gold remains below a 1980 peak price of $850 per troy ounce. Suppose this 1980 price equates to $2,400 per ounce in 2014 dollars. Based on the prices of gold in 1980 and 2014, wha..
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