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Assume that country A can produce a unit of good X with 1 labor hour and a unit of good Y with 3 labor hours. Country B can produce a unit of good X with 2 labor hours and a unit of good Y with 8 labor hours. Labor is the only resource used. What would be the terms of trade for 1 unit of good X?
(Cournot's duopoly game with linear inverse demand and a quadratic cost function) Find the Nash equilibrium of Cournot's game when there are two firms, the inverse demand function is given by P(Q) = a - 2* Q and the cost function of each firm is
Explain how does the existence of money reduce the costs of making transactions, relative to a society based entirely on barter.
Find the equivalent of present worth (t = 0) of a uniform series of $4550 for 8 years, if the payment is made every 12 months, starting 6 years from now. Assume the interest rate is 12% per year, compound continuously.
One family of social dilemmas arises where a group of people are involved in some task that depends on the efforts of each of them. The strategy choices are work or shirk. In an effort dilemma, one persons shrinking places the burden of increased eff..
What are the steps that the Fed can do to stimulate the economy? What are problems with those types of policies? How do you know that they will work?
You are paying $30,000/yr for your four year college degree. You could be earning $20,000/yr if you worked instead. After graduation you will earn an immediate $30,000 signing bonus and $40,000/yr for 6 years and then you retire. Is your education a ..
In long run, what would you expect to happen to the price of steelin U.S. and Germany. What would be the price differential.
Suppose the current price of gasoline at the pump is $4 per gallon and that one million gallons are sold per month in Texas. A local politician proposes to add a 10-cent tax to the price of a gallon of gasoline, and she claims that the tax will gener..
Both Dave and Caroline produce sweaters and socks. If Dave's opportunity cost of producing 1 sweater is 3 socks, and Caroline's opportunity cost of producing 1 sweater is 5 socks, then
Complete an in-depth analysis of a current labor event in one of the following countries: China, Hong Kong, France, England/UK, Germany, or Mexico. Pick a single specific topic of labor relations to evaluate, such as strikes, formation, impasse resol..
A large and fast growing suburb of Rochester is considering expanding the size of its community park system by purchasing over 500 acres of undeveloped land located near a current park site. Describe four different approaches to natural resource valu..
If it is easy for a firm to get into or exit from a market, then a firm in that market will be able to earn positive economic profits. When economic profit is positive,
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