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Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United States has 30 workers and the United Kingdom has 20 workers. a) Which country has absolute advantage in what good? b) Find the opportunity cost of both goods in both countries. c) Which country has comparative advantage in what good? d) Draw the PPF for the United States. e) Suppose the international relative price of a ton of steel is 2.5. Draw the world price line. f) Show that the United States is better off under trade compared to Autarky with the aid of indifference curves. g) Show the amount the United States will export and import.
Most people perceive international public administration to be a set of state structures, institutions, and processes. Opponents of globalization argue that it weakens states, making it difficult for them to sustain social welfare and environmental p..
Determine the total amounts of M1 and M2 based on the following data from July 2010: Currency held by individuals and businesses was $921 billion. Traveler's checks were $7 billion. Checkable deposits owned by individuals and businesses were $813 bil..
Barb also Jim run a business which sets up also tests computers. Assume which Barb also Jim can switch between settings up also testing computers at a constant rate
Assume that the annual rate of inflation (compounded annually) is 2%. Assume that the market annual interest rate (compounded annually) is 3%. What is the real (i.e. “inflation-free”) annual interest rate (compounded annually)?
The government wants to eliminate the inflationary gap by changing expenditures. What policy do you suggest? By how much will unemployment change after you policy has taken effect?
Use the algebraic form of the aggregate demand curve to find the level of GDP that occurs when the money supply is $900 billion and government spending is $1200 billion. Repeat all the previous calculations if government spending increased to $1300 b..
Assuming sum-of-years digits depreciation, what book value will Model-I have after two years.
Demonstrate graphically the cost of income taxation of 30% to consumers and producers for an income of $27,908?
If average fixed cost equals 40 and average total cost equal 100 when output is 10 then total variable cost when output is 10 must be?
Suppose your firm produces electricity by burning coal. Currently it buys central Appalachia 12,500 BTU per ton coal at the market price of $52 per ton.
The 2011 yield curve indicates that the interest on the national debt could be cut drastically by financing the debt with short-term, one- year bonds. the savings was huge since the short-term interest rate was at the lowest point it had been in over..
If supply at every price is reduced by five gallons, what will the new equilibrium price be.
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