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Use the information in the table on labor productivities in France and Germany to answer the following question
Output per Hour Worked
France: cheese is 1 kilogram, cars is 0.25 carGermany: cheese is 2 kilograms, cars is 2 cars
a. Which country has an absolute advantage in cheese? In cars?b. What is the relative price of cheese in France if it does not trade? In Germany, if it does not trade?c. What is opportunity cost of cheese in France? In Germany?d. Which country has a comparative advantage in cheese? In cars? Show how you know.e. What are the upper and lower bounds for the trade price of cheese?
Examine how wage inequality is measured and if it present in your selected industry. My Selected industry is the automotive industry.
Japan has had an overall trade surplus in current years. Economists advice that this continuing phenomenon is due to many things, including an inappropriate exchange rate
Analyze news from a global newspaper delivering a report that could be useful for your company to take a managerial decision.
In the mid-1990s and through the early 2000s, Japan's annual money supply growth rate fell to 1-2 percent from an average annual rate of 10-11 percent in the late 1980s. What effect did this decline have on a. Japanese real output
Suppose that in Canada opportunity cost of manufacturing 2 television sets is 3 bushels of wheat. Suppose that in the United States the opportunity cost of manufacturing 2 bushels of wheat is 3 television sets.
(1) the price of television sets increases by 4% in Japan, (2) the dollar depreciates by 5% with respect to the yen (Japanese currency), (3) consumer incomes in the U.S. increase by 3%, (4) the price elasticity of demand for imported TV sets in th..
Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Comparing and contrasting the economic fluctuation the United States has experiences from 1990 to current date.
A FX dealer in London normally quotes spot, 1M, 3M and 6M forward. When you ask over the phone for current quotes for YEN or USD you hear "111.43 to 51, 52 to 48, 150 to 144, 337 to 205"
Which of the following situations will arise in the domestic market following the removal of an import quota? a. imports increase, domestic production increases, prices increase b. imports increase, domestic production decreases, prices decrease c. i..
The Republic of Republic produces 2-goods, marshmallows and soda water. In 1994, the one hundred units of MM produced sold for $3 a unit and 50 units of SW produced sold for $1 a unit.
Housing price models can be estimated with time-series as well as cross-sectional data. If you study aggregate time-series housing prices, you have: N 38 (annual 1970-2007) where: Pt the nominal median price of new single-family houses in the Unit..
Using two supply and demand graphs, one for the market for yuan in the United States, and one for the market for dollars in China, show how China is able to keep its currency at an artificially low exchange rate. First, show the effects of an inc..
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