Consider a nation that has a comparative advantage in the production of goods using unskilled labor. What types of workers will benefit from increased trade, and what type will lose?
What will be an ideal response?
As a result of trade, the wage of unskilled labor will increase and the wage of skilled labor will decrease.
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How does a quota affect the consumer surplus and the producer surplus from the imported good? Is the overall economy helped or harmed by quotas? Briefly explain your answers
What will be an ideal response?
Explain the new guidelines used by the Department of Justice and the Federal Trade Commission for evaluating proposed mergers.
What will be an ideal response?
In 2006, the United States had
A) a surplus in the current account. B) a balance in the current account. C) a deficit in the current account. D) From 2006 data, it is too difficult to determine whether a surplus or a deficit existed in the current account. E) a positive balance of net financial flows.
Answer the question based on the following information on the banking system. Deposits at the central bank = 200 U.S. Government Securities = 600 Checking Deposits = 1,700 Loans = 800 Stockholder's Equity = 70 Other Assets = 450 Other Liabilities = 230 Borrowing from the central bank = 100 Cash in the Vault = 50 The reserve ratio on transactions deposits = 10% The banking system's excess reserves
equal: a. 80 b. 1,500 c. a multiple of 250 d. 1,450 e. None of the above is correct