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In his State of the Union speech in January, 2012 (and throughout the following campaign), President Barack Obama stated, “We’ve brought trade cases against China at nearly twice the rate as the last administration –- and it’s made a difference. Over a thousand Americans are working today because we stopped a surge in Chinese tires.” To be more precise, it’s been calculated that 1200 American tire manufacturing jobs were saved, at a cost of $1.1 billion to American tire consumers (about $900,000 per job). Was that a good deal for Americans as a whole?
Determine the current amount of money that must be invested at 12% nominal interest, compounded monthly, to provide an annuity of $12000 per year for 4 years, starting 11 years from now. The interest rate remains constant over this entire period of t..
When most consumers and firms reduce spending only because they expect other consumers and firms to reduce spending, and a recession results, A. a real-business-downturn has occurred. B. a self-correction has occurred. C. a coordination failure has o..
In perfect competition if firms produce where P=MC they ensure ________ because the social benefits of production as measured by the price that people are willing to pay, are in balance with the ________ to society of that production.
Use a diagram to explain the following: In the case of perfect substitutes, if the ratio of input prices equals the MRTS, will a unique solution to the firm's cost-minimization problem exist? In the case of perfect substitutes, if the ratio of input ..
A tax is applied to the market in the amount of $32 per unit. With the tax, sellers now receive a price of $60 per unit sold. You will have to calculate the price paid by buyers - but you have enough information to do so. With the tax, 540 units are ..
Suppose Michelle makes a trip to a candy store where she intends to purchase two goods: gummy worms (g) and donkeys (d). Her utility function is U = gd. Suppose the price of gummy worms is 2 and she has $200 in income. Derive an expression for her de..
Explain the international interest parity concept. Then explain in words what happens to the IS and LM curves and the nominal interest rate in the domestic economy, and then its impact on the exchange rate between the domestic economy and the rest of..
Hillary spends all her income on milk and cookies. Graph Hillary's budget line when income = $20, Pcookies= $1 & Pmilk= $2. Pick some point in the middle as her optimal choice and draw in the appropriate indifference curve. Redraw the two budget line..
The predictive power of the Heckscher-Ohlin model, at least in terms of forecasting the volume of trade, appears to undergo improvement upon abandonment of the assumption. The gravity model states that trade between two countries will increase if the..
Which of the following conditions may make predatory pricing by incumbents rational?
Which type of research design is appropriate
If a bank reserves of $100 million and checking deposits of $700 million, how much are the bank's: (a) required reserves? (b) excess reserves?
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