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Suppose that the U.S. dollars-Mexican pesos exchange rate is fixed by the U.S. and Mexican governments. Assume also that labor is mobile between the United States and Mexico due to low transportation costs. Which of the following situations is likely to happen as a result of a simultaneous decrease in the demand for U.S. goods and increase in the demand for Mexican goods?
a. The U.S. unemployment rate rises at first, but it soon drops as unemployed Americans move to Mexico for employment.
b. The U.S. unemployment rate rises at first, but then it drops as U.S. dollars depreciate against Mexican pesos.
c. The U.S. unemployment rate increases, and the country undergoes bad economic times for a sustained period.
d. The Mexican unemployment rate increases, and the country undergoes bad economic times for a sustained period.
Henry Striker manages a frosty boy drive-in. His straight-time pay is $10 per hour, with time and a half for hours in excess of 40 per week. Strikers payroll deductions include withheld income tax of 8%, OASDI of 6.2%, Medicare of 1.45% and a weekly ..
You have your eyes on a new automobile costing $25,000. If you wrote a check for the $25,000, you could drive off in your new car. However, you don’t have it and must finance $20,000 through the dealership at 15%/year/month over a 5-year period. What..
Complete the expense budget, budgeted statement of financial performance: you will need to add the non GST items to the expense budget, and the cash flow budget which has an opening cash balance of $42,000. The opening GST liability is $2,000 and ..
The economy has recently turned around, and one of your colleagues suggests that you could hire 25 people for $50,000 per employee to do the sales job as independent agents at a cost of goods sold (COGS) of only 0.5%. What concerns might you have abo..
In terms of the law of contract can they sue Mr Patel for the cost of R17 000.00 that they are now required to pay to rectify the errors. Assume that the electrical compliance boards report is correct. Do you think Mr Patel has any defence to the cla..
A pharmaceutical firm faces monthly demands in the U.S. and Mexican markets for one of its patented drugs.
Draw a graph that shows a market with inelastic demand and elastic supply at equilibrium. Then, on your graph, draw what happens when the government subsidizes buyers. Note the price received by sellers and price paid by buyers. Who receives most of ..
Opportunity cost refers to : value all alternatives forgone as result of making particular choice. value of next best alternative occurring as result of making particular choice.
Consider what you have learned about the root causes, as identified by leading economic thinkers and policymakers.
With regard to consumerism, immigration, and nutrition, where do you find their critiques compelling.
Identify also Talk about an industry or a marketplace segment companies were the "wrong" size for the long term.
Tucker's industrial engineers have informed management that hiring one additional worker will increase output by five units every hour
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