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Q1. If unit labor costs in Spain and Portugal rise, but unit labor costs in Germany decline and other producer prices stay unaffected, Illustrate the effect should these factors, by themselves, have on export trade, and why?
Q2. What three factors determine whether two economies with separate fiscal and monetary authorities should form a currency union? Give an illustration of each factor using NAFTA economies.
Small minimum efficient scale in assembly operations indicate high or low entry threat in the PC business
Consider a product market for a normal good. Suppose consumers' income increases. Explain what will happen to labor demand for firms in that market.
Explain an economy is initially in equilibrium at the natural level. The central bank increases the money supply.
The law of demand states that other things equal
How much of each good does Alice buy as well as how much does she work.
Their banks are holding back credit so it is harder for businesses to invest and for consumers to spend
Do you believe that profit (or shareholders wealth) maximization still represents the best overall economic objective for today's corporations.
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
Determine the new equilibrium price and quantity and how much tax revenue does the government earn with $6 tax.
How can two countries both be better off as a result of trade? How can tariffs protect U.S. jobs? Do tariffs lead to a net increase in jobs?
Divide the Banzhaf power index by the number of votersin state. Are votersin small states or are votersin big state more powerful, according to this measure.
Proposals for modifications of the law are formulated by committees. Under the closed rule, the legislature may either accept or reject a proposed modification, but may not propose an alternative.
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