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Alex doesn't care about where he lives, but he does care about what he eats. Alex spends all his money on restaurant meals at either American (x_a) or French restaurants (x_f). His firm offers to transfer him from its Austin office to its Paris office, where he will face different prices. The firm will pay him a salary in euros such that he can buy the same bundle of goods in Paris that he is currently buying in Austin.
1. Will Alex be better off in Paris if the relative prices between American and French meals (p_a/p_f) are lower in Paris than Austin? Why?
2. Will Alex be better off in Paris if the relative prices between American and French meals (p_a/p_f) are higher in Paris than Austin? Why?
California prisons are overcrowded. The State has the choice between building new prisons and relaxing parole standards (so that prisoners are released on parole earlier). Due to the budget crisis, it has chosen to relax parole standards.
America takes 10 hours to make a cup and 5 hours to make a bag. In Britain the two goods cost $24 and 6 hours. America has 40 hours of labor available. Which goods does America export. Which country has the higher wage?
Determine the policies that Keynes and Hayek advocated regarding how federal government should manage the economy. Discuss the major differences between each school of thought?
Discuss any three examples of events occurring in one country and having a significant impact in nations that are its trading partners. You are also restricted to events that have occurred no earlier than 2010. Finally, be sure to document your so..
Suppose that a certain manufacturer has a monopoly on the sorority and fraternity ring business (a constant-cost industry) because it has persuaded the "Greeks" to give it exclusive rights to their insignia.
Examine the role of Bank of England's monetary policy instruments in dealing with the recent financial and economic crisis and discuss the role of capital in banking
The United States in currently running a large current account deficit. If Congress and the White House decide to enact policies to reduce or eliminate the deficit, what actions should they take? Describe the set of policy options available to the..
Describe how does choice of an exchange rate regime alter conduct of monetary policy. In addition, please also explain when it tend to increase the power of the monetary authorities and when to decrease their power.
Why might the market exchange rate change a lot as this monetary tightening is announced and implemented and what is the path of market exchange rate likely to be over the next several years?
What is Burger King's core competency? How does it relate to its chosen strategy and how would you explain how Burger King has decided to configure and coordinate its value chain? Which of Burger King's value chain activities create the most value ..
in US, gas cost 2.5 per gallon. in italy, gas cost 6 per gallon. what effect dose this price differential likely have on a.the size of cars in us and italy b. the use of public transportation the us and italy c.the fuel efficiency of cars in the us ..
Explain why the U.S. economy was able to aciheve full employment with relative price level stability between 1996 and 200 even though we had increases in aggregate demand that would have pushed us past full-employment and normally caused high infl..
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