CHAPTER 8 REGIONAL TRADING AGREEMENTS MULTIPLE-CHOICE QUESTIONS 1. The European Union is primarily intended to permit: a. Countries to adopt scientific tariffs on imports b. An agricultural commodity cartel within the group c. The adoption of export tariffs for revenue purposes d. Free movement of resources and products among member nations 4. Customs union theory reasons that the formation of a customs union will decrease members’ real welfare when the: a. Trade diversion effect exceeds
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attains a local maximum at x = −3. ∫ 5. Calculate (A) 10 Solution. 4 0 (3 x + 1)dx (C) 20 (B) 15 ∫ (D) 25 (E) 30 4 4 2 (3 x + 1)dx = 3∫ x1/ 2 dx + ∫ dx = 3 43 / 2 + 4 = 16 + 4 = 20 . 0 0 0 3 4 6a. Suppose that for a certain product‚ the demand function is given by D(x) = 11 − x2 and the
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Money Supply CU - currency held by household and firms D - Deposits held by HF M - Money Supply H - Monetary Base RE - Reserves of Charted bank. These are the currency held by chartered banks plus the deposits of chartered banks at the central bank. rD - reserves to deposit ratio c - currency to deposit ratio rD = RE/D < 1 c = CU/D < 1 M = {(c + 1) / (c + rD) * H } m m > 1 We now want to study how the central bank can affect H and therefore M To do this we need to understand
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Dialogue between Beccaria‚ Lombroso and Durkheim Student’s name Institutional Affiliation Dialogue between Beccaria‚ Lombroso and Durkheim Criminology‚ as every science‚ relies on facts and evidence. This paper is aimed at creating a dialogue between three criminologists of the nineteenth century Beccaria‚ Lombroso and Durkheim; in this discussion‚ they will explain their points of view and try to implement their theories into the reality at the end of the twentieth and beginning of the twenty
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Culture Assimilation 1) Definition of the topic: In the article The Importance of ’Community ’ in the Process of Immigrant Assimilation." International Migration Review by Joseph P. Fitzpatrick it explains how there is two steps to assimilating which are‚ cultural assimilation and social assimilation. It defines cultural assimilation as “adapting to values‚ norms‚ and expectations” (6). Immigrants change their personal beliefs and adapt to a new lifestyle. After culturally assimilating it says
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Topic 6: Externalities and Public Goods An externality is created when the actions of participants in a private market affect the well being of someone not directly associated with that market. Consider the market for paper. Paper creates a byproduct in its production called dioxin. Dioxin affects innocent bystanders by causing cancer and birth defects. This is a negative externality in production because the paper firm doesn’t consider this cost to society when making production decisions
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any one currency. They can limit credit risk by restricting the position they are willing to take with any one customer and by setting margin requirements that vary with the riskiness of their customers (banks will generally not do this). 3. Suppose a currency increases in volatility. What is likely to happen to its bid-ask spread? Why? ANSWER. As a currency’s volatility increases‚ it becomes riskier for traders to take positions in that currency. To compensate for the added risks‚ traders
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−100‚ 000 −200‚ 000 −100‚ 000 Suppose the relevant discount rate is 12% per annum. (a) Compute the profitability index for each of the three projects. (b) Compute the NPV for each of the three projects. (c) Suppose these three projects are independent. Which project(s) should Amaro accept‚ based on the profitability index rule? (d) Suppose these three projects are mutually exclusive. Which project(s) should Amaro accept‚ based on the profitability index rule? (e) Suppose Amaro’s budget for these projects
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Solutions to Exam 1 1. (Chapter 1‚ slides‚ Q3) Suppose there are two investments.The expected returns from the investments are 10% and 15%‚ the standard deviation of the returns are 16% and 24%‚ and the correlation between returns is 0.2.Let w1 be the proportion of wealth put into the first investment. (a). Calculate the expected return and the standard deviation for portfolio w1=0‚0.2‚0.4‚0.6. (b). Draw a picture of these risk and returns for w1. (c). What is it called? (d). Draw the picture of
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1. ------------------------------------------------- Consider a firm with a daily demand of 100 units‚ a production rate per day of 500 units‚ a setup cost of $200‚ and an annual holding cost per unit of $10. Suppose that the firm operates 300 days per year. How many units of inventory must their storage area be able to hold? ------------------------------------------------- Answer | | close to 975 | | | close to 980 | | | close to 1095 | | | close to 1224 | | | close to 1225 | 5 points
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