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Suppose that trade costs add 50% to the cost of each good when shipped, which goods would the home country then export and which goods would it import? will there be any goods that are not internationally traded? assume that the relative wage is 3. Good HOME ULR; FOREGIN ULR; 1 1 20 2 5 15 3 3 12 4 6 18 5 12 8
Elucidate how education, research and development, and technology affect productivity.
Assume that an investor is risk-neutral (i.e. assume that the investor always chooses the investment with the higher expected rate of return even if it is riskier). If the yield on 1-year marketable CD's is 6% while the yield on 2-year marketable ..
An economy is operating with output $400 billion below its natural rate, and fiscal policymakers want to close this recessionary gap. The central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding ou..
You are considering buying a new car with a part of your student loan dollars as you really do not need the extra cash now. You have two alternatives with the following cost structures. Speedy Initial cost = $20,000 Annual operating cost = $8,000 U..
Although economists speak as if economic growth is necessarily a good thing, many question the sustainability and even morality of ever raising economic growth.
the blair company's three assembly plants are located in california, georgia, and new jersey. previously, the company purchased a major subassembly, which becomes part of the final product, from an outside firm. blair has decided to manufacture th..
Suppose in a closed economy, government spending is $60, business investments are $120 and consumers' spending is given as C = 120 + 0.85Y. What is the equilibrium level of output?
Suppose that in a city there are 100 identical self-service gasoline stations selling the same type of gasoline.
According to the American Metal Markets Magazine, the spot market price of U.S. hot rolled steel recently reached $580 per ton. Less than a year ago this same ton of steel was only $260. A number of factors are cited to explain the large price inc..
Assume nominal GDP in 1999 was $200 billion, and in 2001, it was $270 billion. The general price index in 1999 was 100 and in 2001 it was 150. In 1999 and 2001, real GDP rose by what percent?
Suppose we are at a long-run equilibrium point in an AD-AS model. Then the money supply falls. In the short run, is there any difference between what happens in the simple quantity theory of money (SQTM) version and the monetarist version of the m..
Imagine there are two polluters of a given substance with the following marginal-abatement cost functions MAC1=200-e(1) and MAC2=300-3e(2) where emissions are measured in tons/year and both MAC1 and MAC2 are measure in $/ton. Draw on a graph MAC1...
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