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Why do American households and businesses buy things from foreigners? What are the characteristics of the items we buy from foreigners? What are the characteristics of the things we sell to foreigners?
What would be the price of steel in the United States if a policy of "self-sufficiency" were established and no imports were allowed? How many tons of steel would be produced?
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they don't like the taste. From an economic perspective, the company should:
Consider two Countries that share the same technology, South Africa and the UK, and two goods, Diamonds and Tea
In 1968 and 1980, the United States economy experienced a slowdown in productivity incremental. However, since the mid 1980s, economy has experienced higher in the growth rate in productivity.
Suppose that the Untied States decides to subsidize the export of U.S. agricultural products, but it does not increase taxes or decrease any other government spending to offset this expenditure. Using a three-panel diagram, show what happens to na..
Suppose that in the beginning of the year, the exchange rate between US-dollar and the euro is exactly 2 $/EURO. At that time, a one-year US treasury bill yield an interest rate of 5%, while a similar German treasury bill yield 3%.
Given the larger population runs in The States than in Canada, the costs are spread over more units. In fact in The States a cost over run of 10% could be dumped in Canada. Given the law of demand, what would happen to the Canadian company
Some properties are "sold prior to auction", that is, the vendor accepts an offer before the auction is actually run. Investigate and write a summary on how this process works. In particular, is there a hidden auction prior to auction day
Describe how the following events would effect market for South Africa's currency, the rand, suppose a floating exchange rate.
Looking back to the book, it discusses the Japanese government and their government cutting taxes. Do you believe the Japanese were right or wrong to use Fiscal Policy in that manner Why or why not
What is the spot exchange rate, E$/CD? Assuming that interest rates and expectations about the future exchange rate remain unchanged, will the spot exchange rate change over time?
You are planning a trip to Australia. Your hotel will cost you A$145 per night for seven nights. You expect to spend another A$2,800 for meals, tours, souvenirs, and so forth. How much will this trip cost you in US dollars given the following exch..
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