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Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Izodia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily. Why does the United States have an absolute advantage in both goods? Which country enjoys a comparative advantage in food? Why?
Review the impact of the minimum wage on the natural rate of unemployment and make at least one recommendation for change (big or small) that would mitigate the impact while still helping the working poor.
When we purchase German products, does our demand for euro go up or down What are freely floating exchange rates all about, and how do they work How can the falling U.S. dollar impact your travel expenses Why would a cheap dollar relative to other na..
Cite a factor that might increase the dollar price of euros. Cite a different factor that might decrease the dollar price of euros. Explain: "A rise in the dollar price of euros necessarily means a fall in the euro price of dollars." Illustrate an..
Explain and assess how international law has addressed matters of trade, human rights, and the environment. How have these efforts contributed to developing or retarding the construction of global civil society?
The world is becoming increasingly interdependent, and bank's consumers have rising choices in where and how they do their banking.
U.S. railroads in the 19th century were M- form organizations based on geography. Why might a large railroad be better organized as M-form than U-form
What would be the relative supply of Cars in the world market, if both NZ and UK were to produce these two goods on the basis of their comparative advantage in production?
The Biltmore Garage has lights in places that are difficult to reach. Management estimates that it expenses about $2 to change a bulb. Standard one hundred-watt bulbs with an expected life of 1000 hours.
The European Central Bank explicitly states that its long-run inflation traget is 2%. Assume that the Eurozone velocity growth is 2% amd the average growth rate of nominal GDP in Eurozone is 3%. What would you tell the European Central Bank to en..
Certainly the most dramatic change in the structure of the U.S. labor force in the period since the Second World War has been the increase in participation by married women in paid employment. which led to increased numbers of employed married wome..
How can this idea be applied to activities of profit making firms and profit loosing companies or to the revenue and costs components of a company's net profit?
We are constantly hearing about the mass exodus of jobs to other countries (phone service, computer service, sales). Use the concept of comparative advantage to explain why this is occurring. Also, explain how the U.S. benefits
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