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Consider the following model of trade between Home and Foreign. Assume throughout that those two countries are the only two countries in the world, at least for purposes of trade. There are two goods: Corn and Radio. Consumers always spend one-third of their income on Corn and the remainder on Radios. The only factor of production is labour. Each home country worker can produce 2 units of Corn or 3 units of Radios per unit of time, while each foreign worker can produce 2 units of Corn or 4 units of Radios per unit of time. There are 30 workers in Home and 60 workers in Foreign.
You have been put in charge of pricing for a monopolist. Assume that the marginal cost is zero (0). It is known that there are two consumers. Consumer I has a demand of q^d = 6 - p. What is the combined demand (use a demand schedule)? What is the opt..
Calculate national income. if there were 80 million people in this country, what would the GDP per-capita be? if all prices were to double overnight, what would happen to the values of real and nominal GDP? nominal____ real gdp____
A friend has taken you out to lunch and you offer to leave the tip. The bill including the tax came to $38.85. How much you leave as a tip? Explain.
For the sake of argument (and this assignment) assume that global warming is a fact, caused by human activity, and that it can be fixed by taxing producers for the amount of carbon they release. The problem is that this tax would greatly increase cos..
Consider the market for cars in a small country. Suppose the demand and supply curves for cars have been estimated and are given by. Suppose the prevailing price is the (free-trade) world price pF T = 4.5. At this price, what is the quantity demanded..
Why might one person work more, earn more, and pay more income tax when his or her tax rate is cut, while another person will work less, earn less, and pay less income tax under the same circumstance?
Submit a database design in which you address the following: Design a relational database containing the following information about Western classical music:
Suppose Alan’s preferences are described by the utility function: Find the equation for Alan’s indifference curve through the bundle (3, 6).
Base your computations on a MARR of 7% and an 8-year analysis period. If identical replacement is assumed, which alternative should be selected?
Given the information in the below article, explain, in economic terms and using the AD/AS framework, how Australia avoided negative economic growth
You will be given diagrams for the market a representative seller in a purely competitive market in long-run equilibrium. Assuming an increase or decrease in demand in the short-run, be able to show graphically what will happen in the market in the l..
You credit card statement says that you will be charged 1.75% interest a month on unpaid balances. What is the Effective Annual Rate (EAR) being charged?
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