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1. How are economies of scale, comparative advantage, and trade restrictions related?
2. Name three reasons economists support free trade.
3. Why would a country want to be a most-favored nation? Why might it not want to be a most-favored nation?
4. What is the relationship between GATT and WTO?
Pete and Lisa are entering into a bargaining situation in which Pete stands to gain up to $5,000 and Lisa stands to gain up to $1,000, provided they reach agreement. Who is likely to be the better bargainer?
Besides the safe harbor provisions, are there any other potential areas of high risk?
Enter your answer into blackboard as a percentage rounding to two decimal places. For example if your answer is 1.25 percent then you should enter "1.25".
Do they have different implications for inflation?
For each of the following scenarios, determine whether the decision maker is risk neutral, risk averse, or risk loving. a. A manager prefers a 10 percent chance of receiving $1,000 and a 90 percent chance of receiving $100 to receiving $190 for sur..
Let X denote the reaction time, in seconds, to a certain stimulus and Y denote the temperature (F) at which a certain reaction starts to take place. Suppose that the two random variables X and Y have a joint density function f(x,y)= y, 0
Compare and contrast the three basic types of planning models: aggregate growth models, input-output analysis, and project appraisal. What do you think are some of the strengths and weaknesses of these models from the standpoint of planning in dev..
Your company is considering the purchase of new earth movingequipment. The total purchase is $240,000 and we pay with $100,000 cash and borrow therest. (12% per year nominal, compounded monthly for 5 years).
The inverse market demand in a homogeneous product cournot duopoly is P=280-2Q=280-2(q1+q2) and costs are C1(q1) = 20q1 and C2(q2) = 30q2. a. How much output will each firm produce in equilibrium b. What are the equilibrium market shares for these t..
The tensile working stresses are 1200 psi for the plywood and 700 psi for the boards. The working shear stress for the glue is 50 psi. Determine the dimensions b and t so that the joint is as strong as the boards.
You have been hired to predict the effects of increasing the price of itunes songs by 10% from .99 cents to $1.09. You are interested in the effects of the price hike on the number of songs downloaded legally from itunes the number of songs downlo..
How does the Gini ratio relate to the Lorenz curve? Why can't the Gini ratio exceed 1? What is implied about the direction of income inequality if the Gini ratio declines from 0.42 to 0.35? How would one show that change of inequality in the Loren..
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