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Q. Given the opportunity to sell at world prices, the marginal (opportunity) cost of selling a ton domestically is what?
Answer: $5/ton.
in a mixed economy, the government tries to help meet the needs of the public on a limited basis
Q. If trade were to open up between R and P, where could the world terms of trade locate in the figure above (somewhere on the PC/PF axis)? Could relative wages (w/r) in the two c
What are the two main base of foreign trade ?
Q. What is the national income identity for a closed economy? Answer: Y = C + I + G.
Q. In autarky, Country P was producing at point 5. With trade, could its production point be found above or below point 5? Explain why. What must happen in the K/L intensity ratio
A vast body of literature has been dedicated to the study of social support and satisfaction. Social support is commonly viewed as one of the most important concepts of close pers
what is international pricing method?
Q. Suppose the relative price of good 1 falls relative to the price of. What happens to the wage rate? Answer: The labour component of the price of 1 is bigger than that of p
Describe International Trade Theory?
Q. What are the factors affecting the demand for foreign currency? Answer: Three factors that affect the demand for foreign currency are risk, expected return, and liquidity.
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