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The Board of Schmeckt Gut (energy bar product) wants to convince the Government of Industria that a Free Trade Agreement with Atollia would be beneficial for Industria’s economy.
1- If we assume that a free trade agreement with Atollia would indeed increase the demand for our energy bars, what effect would this have for Schmeckt Gut’s labour demand? What about the development of wages? Explain!
2- Assuming that the development of Schmeckt Gut’s labour demand is a good indicator for Industria on the whole, what would be the impact on Industria’s economy? Explain using an appropriate model.
Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results..
Describe what will happen to supply or demand for the dollar and for the euro if more European tourists come to the US for vacations. Be sure to include whether each currency rises or falls in value.
Pamela earns a yearly salary of $150,000. During year 1 she invested $80,000 for a 20% interest in a passive activity. Operations of the activity in year 1 resulted in a loss of $500,000, of which Pamela’s share is $100,000. In year 2, the activity g..
q.hiro nakamura is ceo of the cola king bottling company a small regional producer operating in the pacific northwest.
Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Q2 and whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firms good is P = 160 - 0.5Q. The firm optimizes by producing the level of output that maximizes ..
Illustrate what is the equilibrium to this game.
The entire principal of the borrowed amount of $10,000 will be repaid in 2 years. However, the quarterly interest of $330 must be paid every 3 months. Find the nominal annual interest rate that you are paying.
Ridiculousness, Inc., has sales of $48,000, costs of $21,200, depreciation expense of $1,900, and interest expense of $1,200. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
Critically evaluate and explain: in monopolistically competitive industries, economic profits are competed away in the long run; hence, there is no valid reason to criticize the performance and efficiency of such industries.
In the immediate market period for a highly-perishable crop like tomatoes, the individual farmer's supply curve tends to be:
If both the supply of and the demand for a good are highly elastic, a shift of either curve will always result in. If the supply of rental housing increases causing the price to fall and apartment dwellers move into bigger apartments that cost the sa..
Explain where in the U.S. balance of payments an entry would be recorded for each of the following:
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