Answer the questions below using the information given in the following table.

1. Which country has a comparative advantage in the production of boots?

b. Provide the range of the international relative price of wine at which the two countries would trade.

Company XYZ is currently examining the possibility of buying a machine that will improve productivity. The machine will have an initial cost of $36792.09. The company expects to get benefits of $17,000 per year and the machine will cost $7,555 per year to operate and maintain. The expected useful life of this equipment is 11 years. At the end of the machine's useful life, the firm intends to sell the machine for $2,000. The interest rate is 11%. Compute the net present value of this machine.

What are the two major approaches to the entrapment defense?    Which one do you think is best?    Be sure to explain your position.

Argue the core principles that should be part of trade policy making in Fiji.

5) Derive the demand function for x₁ and x₂ for each of the following utility functions.

a. U(x₁,x₂) = 5x₁x₂

b. U(x₁,x₂) = x^1/3₁ x^2/3₂

c. U(x₁,x₂) = x₁ + 3x₂

d. U(x₁,x₂) = {x₁2x₂}

1(a)What financial benefit does the Government of Canada receive when the Bank of Canada buys its newly issued bonds rather than the Canadian private sector?
(b)What limits the Bank of Canada from buying all of the newly issued bonds issued by the Government of Canada? Explain in detail

A firm produces mineral water according to the following hourly production function y = ln(k+1) + ln(l+1), where k is the amount of capital and l the amount of labor used. Suppose that mineral water can be sold for $60 a ton. Capital goods can be rent at the rate of $15 an hour and the wage rate for workers is $10 an hour.

c) If the firm tries to maximize its profit in the long run, how many units of capital should it rent? How many workers should it hire? (10 points)

d) Suppose that the price of mineral water goes up to $70 a ton. Should the firm hire more workers in the long run? Please explain why. (4 points)

Under what conditions do economies of scale serve as an entry barrier?

And do the same conditions apply to learning curves?

Is the EU a success for all nations? Some nations? Has it been harmful to some nations? Explain. minimum 400 words

The average retail price of regular gasoline used by motor vehicles decreased from $3.85 per gallon in March 2012 to $1.76 per gallon in February 2016. The following may or may not be a reason for this decline. Using demand and supply analysis, explain why or why not.

(1)    Use of a new technology called “fracking” to extract oil from the ground

(2)    The economies in most of Europe were deteriorating and heading toward a recession

(3)    OPEC, the cartel of oil producers, decided to keep production of oil at record levels

(4)    Increasing use of hybrid/electric cars in the US

(5)    Lower profits for Exxon, Shell and other producers of gasoline.

The significant drop in price in gasoline used by automobiles may or may not have had the following effects. Explain why or why not.

(1)    Shut down of some oil refineries producing gasoline

(2)    Decrease in sale of hybrid/electric vehicles

(3)    Increase in sale of gas guzzler cars, such as SUVs

(4)    Increase in number of vacations taken by automobile

(5)    Higher price of cross country trips by bus

What are key general facts of Russia's economy?

What are Russia's institutions that affect total factor productivity (ex. rule of law)?

What characteristics of Russia's economy make it interesting?

a. The taxes imposed on gasoline in Barbados is excessive and inequitable to motorists. b. The government of Trinidad and Tobago should increase the minimum wage to $4000 per week to reduce poverty. For parts (a) and (b) respectively, DRAW a market that is initially in equilibrium, labelling the initial equilibrium price and equilibrium quantity. Then show what happens in each market based on the given scenarios. Label the new equilibrium price and equilibrium quantity. Write the given sentence after each scenario in your examination booklet and fill in the blanks with the words “increase” or “decrease” to describe what happens. a. There is an increase in income and the good is an inferior good: The equilibrium price will _______________ and the equilibrium quantity will _______________. b. Buyers expect the price of the good to fall in the future: The equilibrium price will _______________ and the equilibrium quantity will _______________.

PLEASE SHOW DRAWING CLEARLY.

Discuss whether the human capital and signaling models have different implications for each of the following education policies:

a. Providing financial aid to students for college.

b. Introducing a test that high school students could take to provide reliable measures of task commitment and capacity to work effectively in teams.

c. Increasing the age at which students can drop out of high school from 16 to 17.

4. The following relations describe monthly demand and supply for a computer support service catering to small businesses.

Q D = 3,000 - 10P Q S = -1,000 + 10P where Q is the number of businesses that need services and P is the monthly fee, in dollars.

a. At what average monthly fee would demand equal zero?

b. At what average monthly fee would supply equal zero?

c. Plot the supply and demand curves.

d. What is the equilibrium price/output level?

e. Suppose demand increases and leads to a new demand curve: Q D = 3,500 - 10P

What is the effect on supply? What are the new equilibrium P and Q?

f. Suppose new suppliers enter the market due to the increase in demand so the new supply curve is Q = –500 + 10 P. What are the new equilibrium price and equilibrium quantity?

g. Show these changes on the graph.