According to the chart and the Heckscher-Ohlin theory the US will _________ labor intensive and ________ capital intensive goods. A. Export, export B. Import, export C. Export, Import D. Import, Import
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According to the chart and the Heckscher-Ohlin theory the US will _________ labor intensive and ________ capital intensive goods.
A. Export, export
B. Import, export
C. Export, Import
D. Import, Import
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- You are given the following information about an economy: Gross private domestic investment = 40 Government purchases of goods and services = 30 Gross national product (GNP) = 200 Current account balance = -20 Taxes = 60 Government transfer payments to the domestic private sector = 25 Interest payments from the government to the domestic private sector = 15 (Assume all interest payments by the government go to domestic households.) Factor income received from rest of world = 7 Factor payments made to rest of world = 9 Find the following, assuming that government investment is zero: (a.) Consumption (b.) Net exports (c.) GDP (d.) Net factor payments from abroad (e.) Private saving (f.) Government saving (g.) National savingConsider an economy where the dominant industry is automobile production for domestic consumption as well as export. Now suppose the auto market is hurt by an increase in the length of time people use their cars before replacing them. Describe the probable effects of this change on (a) GDP, (b) unemployment, (c) the government budget deficit, and (d) interest rates.Describe each of the following terms. a) Investment b) Balanced budget c) Absolute advantage d) Nationalisation e) Stagflation
- Which of the following is an example of foreign direct investment (FDI)? A. A US development grant to improve access to electricity in Africa B. Adidas importing t-shirts for sale in the United States C. Wal-Mart buying a local supermarket chain in Turkey D. A World Bank loan to improve infrastructureA US resident buys a $25 wine manufactured in Switzerland in 2020. a. Will the US Next Exports in 2020 increase, decrease, or not change? b. Will the US Consumption in 2020 increase, decrease, or not change? c. Will US Investment in 2020 increase, decrease, or not change?In Macroland potential GDP equals $20 billion and real GDP equals $19.2 billion.Macroland has a(n) ______ gap equal to ______ percent of potential GDP.
- In a farway country, banana is the most important crop exported to rest of the world. Data about economic indicators for farway country are given in Table 1. Table 1: Macro Economic Indicators of Farway Country (all figures in million $) Year Consumption Expenditure Investment Expenditure Government Expenditure Exports Imports 2012-13 100 20 50 60 70 2013-14 120 25 60 65 75 2014-15 140 30 70 65 78 2015-16 160 28 40 50 75 2016-17 165 25 30 45 75 2017-18 170 24 20 40 80 2018-19 170 20 20 35 80 In recent years, a life style change, leading to more consumption of processed food, than raw food has led to reduction in demand for Bananas for consumption. Since the manufacturing sector in Farway Country is not developed, the country has to import most of its processed food needs, leading to increase in imports. The Government of Farway country is contemplating inviting foreign investors to establish industries to manufacture banana products such as candies,…_________ is output per hour in the business sector. Question options: a) GDP per capita b) Investment c) Productivity d) Net exports ____________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in thefirst half of the 1800s. Question options: a) Industrial Revolution b) Capital deepening c) Living standard d)TechnologyQuestion 1:In Ghana, the capital share of GDP is about 40 percent, the average growth in output is about2 percent per year, the depreciation rate is about 3 percent per year, and the capital–output ratiois about 1.5. Suppose that the production function is Cobb–Douglas and that Ghana has beenin a steady state.a. What must the saving rate be in the initial steady state? [Hint: Use the steady-staterelationship, sy = (δ + n + g)k.]b. What is the marginal product of capital in the initial steady state?c. Suppose that public policy alters the saving rate so that the economy reaches the GoldenRule level of capital. What will the marginal product of capital be at the Golden Rule steadystate? Compare the marginal product at the Golden Rule steady state to the marginal productin the initial steady state. Explain.d. What will the capital–output ratio be at the Golden Rule steady state? (Hint: For the Cobb–Douglas production function, the capital–output ratio is related to the marginal product…
- Because capital is subject to diminishing returns,higher saving and investment do not lead to highera. income in the long run.b. income in the short run.c. growth in the long run.d. growth in the short run.true/false explain If an advanced country has an absolute advantage in the production of everything (relative to certain less developed countries), the advanced country will benefit if it eliminates trade with less developed countries and becomes self-sufficient.Last year, $100 million in outstanding bank loans to a developing nations government were not renewed, and the developing nation's government paid off 52 million in maturing government bonds that had been hel bu foreign residents. During that year, however, a new group of foreign banks participated in a $104 million loan to help finance a major government construction project in the capital city. Domestic firms also issued $42 million in bonds and $62 million in stocks to foreign investors. all of the stocks issued gave the foreign investors more than 10 percent shares of the domestic firms. calculate the gross foreign investment in the nation last year. $___ million calculate the net foreign investment in the nation last year. $___ million