In an open economy, investment can be greater than savings if there is a (Click to select) (Click to Select) net capital outflow high tariff net capital inflow
Q: Home country has 1200 units of labor available while Foreign country has 800 units of labor. In Home…
A: Each country has different level of labor unit requirements for both the goods apples and bananas.
Q: The following graph shows the domestic supply of and demand for wheat in Bangladesh. The world price…
A: When the world price is set below the equilibrium, the country will import the good because there is…
Q: (b) There are three people and two goods in an economy. The utility functions and initial bundles…
A: Utility function can be defined as the measure for a group of goods and services preferred by…
Q: An agent (a financial institution or individual financial investor) that has agreed to deliver a…
A: Answer: An investor or agent who has agreed to deliver a specific asset (but not yet own them) to…
Q: The given matrices are payoffs for two-person, zero sum games. Decide whether the games are strictly…
A: -3 -5 2 -1
Q: True or false? why? 1. Mr. Krabs' restaurant have two inputs: capital and labor. The rent (unit cost…
A: Since you have asked multiple questions we would be answering the first one for you. To get the…
Q: How is the World Health Organization structured and governed?
A: World Health Organization is an international organization for public health.
Q: The price elasticity of demand for holidays in Greece is likely to be high because people tend…
A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…
Q: (a) Examine the view that it is possible to escape from the "impossibility" result of Arrow by…
A: Arrow's Impossibility Theorem is defined as a paradox of social choice which portrays that it is…
Q: 1. How might advertising make markets less competitive? How might it make markets more competitive?…
A: "Since you have asked multiple questions ,we will solve first question for you.If you want specific…
Q: Consider an economy that consists of a union and non-union sector. The labour demand in each sector…
A:
Q: Analyze the likely effects of a perfectly competitive market on price, quality, and innovation of…
A: A perfectly competitive market is the one with high degree of competition as many sellers offer…
Q: If the cost of an oven is $500, what is the marginal product per dollar spent on capital for the…
A: Labor and capital are factors of production to produce total product.
Q: Consider a classical economy. Assume that the GDP of an economy is 9000. Consumption is given by the…
A: GDP = 9000 C = 600 + (3/4)YD -40r I = 1200 - 120r NX = 1500 - 200e Budget deficit = 500 Government…
Q: Suppose the federal tax on gasoline increased by 5 cents per gallon. Do you think that such an…
A: Charge is gathered from people and partnerships by the city, state, or nation where they dwell or…
Q: Suppose that the government is going to auction off permits equal to one third of total emissions in…
A: The additional cost incurred for the production of an additional unit is known as the marginal cost.…
Q: Assume that a country is endowed with 33 units of oil reserve. (a) the marginal willingness to pay…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: (a) If either FF or Wodaphone enjoyed a monopoly position in this market, what I output would they…
A: *Answer:
Q: A. Consider a firm who sells output at p=10 and has a short run production function Q(L)=20L-L². Its…
A: 1) "When a firm is a price taker in the input market and sells in a perfectly competitive market…
Q: plant to provide the company’s present needs can be constructed for P2,800,000 with annual operating…
A: Answer is given below
Q: ie Construction made an investment in a machine that is used for road construction two years ag to…
A: Economic service life alludes to the length of usable life that limits an asset's identical yearly…
Q: he market for paperback detective novels is perfectly competitive. We have two types of consumers in…
A: Regular reader's demand curve: P = 79 - 2Q Put Q = 0, and solve for P => P = 79 - 2(0) => P =…
Q: A B Celine's Scooter Supply Ltd. Quarterly Income Statement Units Sold Price per Unit Total Revenue…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Question Two Explain the concept of the Expected Utility Hypothesis (EUH) and state all relevant…
A: When there is uncertainty about the result, this theory estimates the likely utility of an action.…
Q: Discuss this statement : " Because each nation's balance of payments equals zero , it follows that…
A: The goal of a balance of payments deficit or surplus is to comprehend the debt or rest in a…
Q: Imagine that Sunflower, a private company, recycles bottles and supplies to beverage companies. The…
A: Disclaimer:- Since you have posted a question with multiple sub-parts, we will solve first three sub…
Q: sing the demand and supply curves for bonds, explain the effect of the following on the interest…
A: Demand and Supply (AD) (AS) Aggregate demand in an economy refers to the total demand for the goods…
Q: (a) If we allow for the possibility of satiation, consumer's budget constraint takes the form px pw.…
A: Walras Law is defined as a general equilibrium theory which states that despite the prices are…
Q: True or false, Simpson argues global corporations enhance economic freedom and their power…
A: Globalization means increasing the reach of imports and exports on a global level. It is the only…
Q: Which of the following explains why the owners of used cars tend not to sell them at a low price…
A: In this review, customer suspicion toward new items is characterized as a shopper's propensity to…
Q: A 10 percent increase in the price of good A leads to a 20 percent decrease in the quantity of good…
A: Elasticity of demand measures the extent to which quantity demanded changes according to the price…
Q: How does Nederlander’s Audience Rewards program result in a competitive advantage?
A: The factors that enable a company to produce goods or services better or cheaper than its…
Q: A nation's real per capita GDP is $7,788 in 2004 and $8,080 in 2005. What is the growth rate of real…
A: The growth rate of real GDP per capita is the percentage change in real GDP per capita over a period…
Q: How does democracy promote development
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: Only in the short run and not in the long-run, humankind itself will be the one to benefit when…
A: Environmental and ecological considerations are very important for any modern busineww because of…
Q: A higher inflation rate could theoretically help take an economy out of a liquidity trap. Select…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: Matthew's investment in her savings account matured to $5,892.79 at the e days. If the account was…
A: Given the information: Maturity amount = $5892.79Number of days = 80Convert the days into years =…
Q: Although GDP is not the same as economic well-being, high levels of GDP are positively correlated…
A: GDP refers to the market value of final goods and services within a territory produced in a…
Q: Assume the following: Aggregate Expenditures (AE) = $2,500 • National Income (Y) = $1,500 •…
A: Aggregate expenditure: AE = C + I + G + X - M => AE = 150 + 0.9(Y-T) + 500 + 800 + 600 -0.10Y…
Q: Find an example where an ernational Risk is realized. Describ what happened, how the issue was…
A: Business engaged with global exchange need to bargain with risks locally as well as other business…
Q: The diagram below shows demand and supply curve for Kimchi. The government imposes per-unit of tax…
A: Supply curve shows a positive relationship between price and quantity supplied. When tax is imposed,…
Q: Gary likes to gamble. Donna offers to bet him $31 on the outcome of a boat race. If Gary’s boat…
A: Not taking the gamble gives the $80 as an utility to gary.
Q: Solve for x for the following equation: 4ln(3x-8) = 60
A: Answer: Given, 4ln3x-8=60 4ln3x-84=604ln3x-8=153x-8=e153x=e15+8x=e15+83Let us substitute the value…
Q: question one What strategies and tactics can be employed during negotiation, and when or why will…
A: Features of negotiation: 1. Any negotiation requires the presence of at least two parties. Both…
Q: Why employment in the economic sector has declined?
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: You read the following headline in the newspaper: "Following an expansion of military efforts, the…
A: "In macro-economics there are two kinds of policies fiscal policy and monetary policy. Fiscal policy…
Q: Suppose that every driver faces a 3% probability of an automobile accident every year. An accident…
A: Individuals can browse an assortment of insurance plans presented by protection firms. These charges…
Q: a) The following information pertains to a consumption bundles (x₁, x₂) and prices (P₁, P2) faced by…
A: Paasche Price Index is defined as - Pp = p1x1 (t)+ p2x2 (t)p1(b)x1(t)+ p2(b)x2(t) Lasperyres Price…
Q: How to measure PRODUCT DIFFERENTIATION in FOOD AND BEVERAGES INDUSTRY?
A: Answer-
Q: A perfectly competitive firm charges a price that is O lower; more O lower; less O higher; more O…
A: In perfect competition there are larger number of firms and in monopoly there is a single firm.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- In an open economy, if exports equal $8 billion and imports equal $3 billion, then there is a trade ______ and ______ net capital outflow. Group of answer choices deficit; positive deficit; negative surplus; positive surplus; negativeAssume prices are flexible, factors of production are fully employed in both countries and there is perfect capital mobility in the small open economy. Compare the impact of an increase in investment demand in: 1- Small open economy. 2- large open economy.In an open economy,a change in domestic net foreign asset depends on how much is saved, and on investment,which reduces the domestic net foreign asset. True or False.
- Compare the impact of an increase in investment demand in a small open economy and a large open economy. Assume prices are flexible, factors of production are fully employed in both countries and there is perfect capital mobility in the small open economy.In a small open economy, if domestic investment equals $70 billion, domestic private saving equals $40 billion, and government saving equals $30 billion, then the trade balance is: a. -$30 billion b. $0 billion c. $30 billion d. $40 billionSuppose in the goods market equilibrium of an open economy, saving is $6 billion, and investment is $8 billion. Assume there is no measurement error. Then capital and financial account balance is equal to:
- Suppose that several large foreign countries decrease government spending, leading to an increase in the level of world savings. In a small open economy, which of the following is most likely to occur? Increase in the trade deficit Decrease in investment Increase in net capital outflow Decrease in savingWhich of the following statements is true for the small open economy? a.Saving is not always equal to investment b.Saving is always greater than investment c.Saving is always equal to investment d.Saving is always less than investment Clear my choiceQ3-5 With perfect capital mobility and other things equal, an exogenous increase in demand for a country's exports will lead to ______ increase in the country's national income under fixed exchange rates than under flexible exchange rates. Select one: a. a greater b. a smaller c. the same d. a greater, a smaller, or the same; it is impossible to determine without more information
- Which of the following is not an assumption of the small open economy? a.the domestic interest rate is equal to the international interest rate b.financial instruments are perfect substitutes c.the economy maintains a flexible exchange rate d.there exists perfect capital mobilityWhen net capital flows are negative, A. net foreign investment is negative. B. capital inflows are less than capital outflows. C. capital outflows are less than capital inflows. D. A and B are both correct.True or False. When we adjust income per capita based on Purchasing Power Parity (PPP), differences in income per capita between rich and poor countries tend to decrease because non-traded goods are cheaper in poorer countries.