Assume that in a production period there are 60 hours, and before specialization scotland produced both products on their own. they choose to produce the combination of outputs of 7.5 tons of oats and 6 bagpipes. suppose that scotland and the united states agree to specialize according to comparative advantage and then trade between themselves on the following terms: 1 ton of oats for 1 bagpipe. remember that they have 10 full days to produce the item the have comparative advantage in. after specialization and trade with the u. s., scotland wants to still have 6 bagpipes. what will be the gains from trade for scotland?
a. 0.5 tons of oats.
b. 2.5 tons of oats.
c. 3.5 tons of oats.
d. 1.5 tons of oats.

The typical consumer's food basket in the base year 2015 is as follows: 30 chickens at $4 each 10 hams at $5 each 10 steaks at $8 each a chicken feed shortage causes the price of chickens to rise to $5.00 each in the year 2016. hams rise to $7.00 each, and the price of steaks is unchanged. a. calculate the change in the "cost-of-eating" index between 2015 and 2016. year cost of the basket 2015 $ 2016 $ instructions: enter your responses rounded to one decimal place. the official cost-of-eating index has by %. b. suppose that consumers are completely indifferent between two chickens and one ham. for this example, how large is the substitution bias in the official "cost-of-eating" index? the in the cost-of-eating index is %. the of inflation in the cost of eating reflects substitution bias.

Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th?

Rats that received electric shocks were unlikely to develop ulcers if the