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The country initially has no restrictions on trade and then imposes an import quota of 3,000,000 crates per year. How will this affect the price and the quantity imported? What are the welfare effec
Which country has the absolute advantage in each good? Indicate each country's comparative advantage In what range will the world trading price ratio lie when these countries open up to free trade?
How many bars of soap will you want to produce if price falls to $2?Suppose price of soap is again $3 per bar, but prices of all 4 resources are now $1 per unit. Which is now the least-profitable te
Economic issues are often discussed in the terms of money and prices, but it is difficult to quantify social capital in such terms. Can you think of topics, both within the category of social capita
How is elasticity related to revenue? how is diminishing marginal returns related to cost? how are revenues and costs related to profit?
Total costs include a "normal" return on the time (labor services) and capital that the owner has invested in the firm. What is the firm's profit maximizing output level?
Suppose that the price of ale rises to $2.50 per unit and remains there. Write an equation for Percy's inverse demand for cakes. i. Use red ink to draw in Percy's new inverse demand curve for cakes.
Calculate the output and price of dry cleaning if it is produced under competitive conditions without regulation. Determine the socially efficient dry cleaning.
Suppose you have a project that costs $100 today and yields 0 today but then pays 5 a day for the next 30 days. If the interest rate is 5%, what is the present discounted value of the project?
Write down the person's budget constraint? What is the person's marginal rate of substitution of consumption today for consumption tomorrow?
Suppose both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? How would your answer change if the firms have not yet entered the
Write down the expected utility of the farmer. Suppose the farmer buys insurance that pays 3$ if it doesn't rain but costs 2$. What is their consumption when it rains? When it doesn't rain?
In a particular region, there are two lakes rich in fish. What interpretation would you give to the Lagrangian multiplier, λ?
What are the main determinants of economic development? How economic growth can be measure?
Which of the following statements about the price/earnings ratio is false?
Use the Lagrangian method to calculate the least-cost allocation of production to the two assembly lines. What is the firm's total cost equal to if it fulfils its contract?
Suppose that a competitive firm has a total cost function C(q) = 450 + 15q + 2q^2 and a marginal cost function MC(q) = 15 + 4q. If the market price is P = $115 per unit, find the level of output pr
Calculate the velocity of money when nominal gross domestic product (GDP) is $1 trillion and the money supply is $250 billion.
The demand for labor by an industry is given by the curve L = 1200 - 10w, where L is the labor demanded per day and w is the wage rate. The supply curve is given by L = 20w. What is the equilibrium
If the MPC is 0.6 what is the value of the multiplier? What would be the new equilibrium value of real GDP corresponding to the $20 billion dollar increase in government spending?
Compare the correlation between China's rate of economic growth between 1980 and say 2005 (or 2006) and improvement in its rate of infant mortality (or another social indicator)
Which of the following is not held constant when constructing a supply curve for good X?
A budget surplus of $60 billion merits, and investment of $100 billion merits. What were its consumption and government expenditures on goods and services?
Suppose that when 100 units of output are produced, the MC of the 101st unit is $2. This is equal to the minimum average total cost, and MC is rising. If the optimal output level is 150 units (in th
'When elephants fight, it is the grass that suffers.'" Please comment fully on the following question: How is U.S. labor law premised on this belief?