Suppose a small country Neverland exports only silver and gold. These two industries employ 40% of the population of Neverland. Export is equal to 50% of Neverland's GDP. 60% of all the export revenue Neverland obtains from silver export. Other things being equal, if the price of silver on the world market goes up by 20%, by how much Neverland's welfare will change? [Type your answer in percent (to the first decimal point) and use sign for the direction of change, i.e. if your answer is "goes up by 20.56%" type 20.6, if your answer is "goes down by 20.34%" type -20.3.] Answer:

Suppose a small country Neverland exports only silver and gold. These two industries employ 40% of the population of Neverland. Export is equal to 50% of Neverland's GDP. 60% of all the export revenue Neverland obtains from silver export. Other things being equal, if the price of silver on the world market goes up by 20%, by how much Neverland's welfare will change? [Type your answer in percent (to the first decimal point) and use sign for the direction of change, i.e. if your answer is "goes up by 20.56%" type 20.6, if your answer is "goes down by 20.34%" type -20.3.] Answer:

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter33: International Trade

Section: Chapter Questions

Problem 6QP

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