Homework #2 – Solutions 1. Union A wants to represent workers in a firm that would hire 20‚000 workers if the wage rate is $12 and would hire 10‚000 workers if the wage rate is $15. Union B wants to represent workers in a firm that would hire 30‚000 workers if the wage is $20 and would hire 33‚000 workers if the wage is $15. Which union is likely to organize? The union will be more likely to attract the workers’ support when the elasticity of labor demand (in absolute value) is small. The elasticity
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Seminar 2 Topics Covered: Heckscher-Ohlin Model Part I and II 1. This exercise uses the Heckscher-Ohlin model to predict the direction of trade. Consider the production of hand-made rugs and assembly line robots in Canada and India. Problem 1 Answer a) Which country would you expect to be relatively labor-abundant? Capital-abundant? Why? Labor-abundant: India. Capital-abundant: Canada b) Which industry would you expect to be relatively labor-intensive? Capital-intensive? Why? Handmade
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1. Determining changes in equilibrium price and quantity for a perfectly competitive industry given changes in demand and/or supply (Ch. 2‚ p. 60-65; Class Notes) A. Graphical analysis given demand and supply curves (a) While there is increased awareness of Vitamin C available from orange juice‚ a hard‚ freezing winter occurs in most of the orange producing areas. Demand increases while supply decreases. (b) While the technology used for tobacco production is improving‚ there is increased
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Acct 2302 Chapter 9 Sample Exam Questions Exercise 184 Coliseum Company has budgeted the following unit sales: Quarter Units Qtr. 1‚ 2006 60‚000 Qtr. 2‚ 2006 50‚000 Qtr. 3‚ 2006 40‚000 Qtr. 4‚ 2006 80‚000 The finished goods inventory on hand on December 31‚ 2005 was 6‚000 units. It is the company’s policy to maintain a finished goods inventory at the end of each quarter equal to 10% of the next quarter’s anticipated sales. Instructions Prepare a production budget for the
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clarity. End-of-chapter questions 7 and 9 and Internet questions are new. INSTRUCTIONAL OBJECTIVES After completing this chapter‚ students should be able to: 1. Identify the Employment Act of 1946 and the roles of the CEA and JEC. 2. Distinguish between discretionary and nondiscretionary fiscal policy. 3. Differentiate between expansionary and contractionary fiscal policy. 4. Recognize the conditions for recommending an expansionary or contractionary fiscal policy.
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investment is $3 billion‚ and government expenditures are $2 billion. If GDP is $14 billion‚ which of the following could be true regarding exports and imports in the economy? Answer Exports are $6 billion‚ and imports are $8.5 billion. Exports are $15 billion‚ and imports are $10.5 billion. Exports are $4.5 billion‚ and imports are $2 billion. Exports are $9 billion‚ and imports are $6 billion. 10 points Question 2 1. Caroline is an artist. She purchases canvas‚ paints
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countries‚ Athens and Troy‚ produce two goods‚ ships and food‚ according to the following production functions: 1 ship = 4 capital + 2 labor 1 food = 1 capital + 3 labor. Athens has 200 units of capital and 100 units of labor available to produce ships and food. Troy has 100 units of capital and 150 units of labor available to produce ships and food. 1. 2. 3. 4. 5. Which good is capital intensive in production? Which good is labor intensive in production? In which country is capital
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|1 | |Kinetic theory of matter |2 | |Chapter 2 The atmosphere | | |A simple experiment to determine the percentage of oxygen in air
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services in the form of building maintenance‚ cleaning‚ etc. If the college did not want the goods or services then we will have to pay the tuition fees in terms of money so the college can exchange it with whatever it has get which money can get it. 2. How is “money” defined‚ both conceptually and in practice? Does the U.S. money supply consist of commodity money‚ full-bodied paper money‚ or fiat money? Answer) Conceptually Money is defined as medium of exchange in goods and services. In practice
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the consumer’s income is $50. In addition‚ suppose the consumer’s budget constraint illustrates hot wings on the horizontal axis and beer on the vertical axis. 2.Refer to Scenario 3-1. If the price of beer doubles to $2‚ then the a. budget constraint intersects the vertical axis at 25 beers. b. slope of the budget constraint rises to -2. c. slope of the budget constraint falls to -4. d. budget constraint shifts inward in a parallel fashion. 3. Refer to Table 3-1 below. You have an extra
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