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Suppose there are two goods being produced in the economy: robots and wheat. Robots are a capital intensive good and wheat is a labor intensive good. Suppose that there are two countries: France and Brazil. France is capital abundant and Brazil is labor abundant. Using two graphs (one per country) draw the international trade equilibrium for this two country world economy based on the Heckscher-Ohlin model.
A production facility is looking at installing a wind turbine which will cost $175,000 at time zero. The wind turbine will allow them to have free electricity and they know they’ll use all the electricity it provides. The wind turbine will have a 6 y..
Machine A costs $20,000 to purchase and is worth $5,000 in 6 years. Machine B costs $10,000 to purchase and is worth $2,000 in 4 years. Assume that these machines are needed for 24 years and can be repurchased at the same price in the future. (use 10..
For five years, an oil drilling company has operated profitably in the state of Alaska (the only place it operates). Last year, the state legislature instituted a flat annual tax of $100,000 on any company extracting oil (or natural gas) in Alaska. H..
Suppose the following were facts relating years of education to average annual income of individuals. Would you use the inductive or deductive method to derive an economic principle from these facts.
Which policy do you believe would be more effective in the short term for accomplishing these goals.
How would the following transactions affect U.S. exports, imports, and net exports?
The marginal revenue received by a firm in a perfectly competitive marketplace is illustrating what
A bond with 20 years remaining has a face value of $1000 and a coupon rate of 15%. Assume that the bond payments are annual and the coupon was just paid.(a) What is the yearly coupon payment?(b) What is the price of the bond if it has a 6% yield to m..
A nominal rate of 14% should be used as the MARR. What equivalent annual interest rate is the second contractor offering? Which contractor’s offer would you accept? Repeat the analysis with the NPV technique.
q.throughout history the most popular form of money has been gold.a. provide 3 reasons why gold has been such a popular
For this assignment you need to evaluate one idea and how you would implement your stimulus strategy. Food for thought
The company has determined that it would earn zero economic profits if price were equal to average total cost, and in this case it could sell 20,000 copies. In the short run, what is the profit-maximizing price of e-books relating to do-it-yourself..
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