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A large importing country utilizes a binding import quota to support its domestic price. Suppose this country experiences a 25% depreciation of its currency relative to all other countries. Construct a scenario to show how this currency depreciation could cause the import quota to no longer be binding. What does this imply for policy makers, producers, and consumers?
If r is 1 percent, what is Y along the LM curve? If r is 3 percent, what is Y along the LM curve? If r is 5 percent, what is Y along the LM curve?
Suppose that a monopolistically competitive restaurant is currently serving 240 meals per day (the output where MR = MC). At that output level, ATC per meal is $13 and consumers are willing to pay $17 per meal. What is the size of this firm’s profit ..
Explain how could you estimate the net welfare loss (deadweight loss) from such a diagram. What response to such a policy would you expect from industries (like automobile producers) that use U.S. steel.
Also identify and discuss the flows that are created when Government enters the circular flow.
"Equities" is another word for
Movie attendance dropped 8 percent as tickets prices rose a little more than 5 percent. What is the price elasticity of demand for movie tickets? Could price elasticity be somewhat overestimated from these figures? That is, could other things have ch..
Find an article (newspaper, magazine or online) about the unemployment rate. Use the article to answer the following questions: What is the current unemployment rate in the US? Is the unemployment rate rising, remaining the same, or decreasing? There..
A paper mill has leaked a toxic substance (chlorine) into the ground. Fixing the leak was very expensive so the paper mill chose not to fix the leak. Once local residents and local government discovered that the toxic was contaminating local water su..
They are all highly populated areas with target markets suitable for your products. One factor is which there several formidable competitors in all of the areas
q. in recent years many plants have closed forcing thousands of employees out of their jobs as well as into new ones.
Are innovative product and service offerings ethically neutral? Consider Napster and the intellectual property issues associated with swapping music over the Internet as an example to begin the discussion.
Economic data is a very broad concept. It can include discrete preference relation data-sets as well as extensive time series data. But it is important that theories are tested against data, and the earlier this happens in the development of an econo..
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