The gains from two nations depend on ___________. Select one: a. terms of trade b. domestic barter rates c. different in the domestic barter rates of the two countries d. degree of absolute advantage
Q: What is the amount of capital that earns simple interest: a)$1,500 at 18% per year in 10…
A: In the market, the amount of capital is also known as principal amount that is invested today to…
Q: cross-price elasticity of demand between two goods is +2
A: Demand elasticity is primarily defined as the change in demand as a result of a change in price,…
Q: 15. If government spending increases by 1 billion euro, and mpc=0.4, how much should tax change to…
A: In an economy, when government makes changes in its expenditure or spending, it will have a…
Q: France produces agricultural products and manufactured products, using both labour and capital. When…
A: International Trade: The term international trade refers to the trade spectrum in which a country is…
Q: You are quoted an interest rate of 6% on an investment of $1000. What is the value of your…
A: Here, it is given that an investment of $1,000 gives 6% annual interest rate that is compounded…
Q: Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year. Quantities…
A: Given information There are two types of cars, i.e., Deluxe and Limited, produced by a car…
Q: What is the role of GATT in International Business?
A: International Trade is defined as the exchange of goods and services between two or more countries.…
Q: In a village, Lou and Lisa are the only people who buy haircuts. When the price is $15.00, Lisa…
A: Demand is the quantity of an item or service that consumers buy at various prices during a specific…
Q: Assume that the market demand for a product is represented by the equation P=50- and its market…
A: Please find the answer below. MARKET DEMAND: Market demand describes the demand for a given…
Q: Suppose a war destroys part account of a neutron bomb bein change to show the effect of thi over…
A: The Solow growth model spotlights on long-run economic growth. A vital component of economic growth…
Q: What happens to the supply curve when the supply of bottled water changes? When the supply of…
A: A Supply curve measures the relationship between the price of the good and to quantity supplied of…
Q: Assuming the expectations theory is the correct theory of the term structure, calculate the interest…
A: Computation of the interest rates in the term structure: Expectation theory: Expectation theory…
Q: Can you continue to the otherremaining please. Caribbean Community (CARICOMM) How these RO are…
A: Remaining organization are- USAN, CARICOM and UfM, In which UfM is International organization and…
Q: Economics The values of payoffs within a game's structure are always Question 34 options A)…
A: A game structure in theory is defined by the following factors - => Number of players =>…
Q: Answer quickly fast don't copy
A: In an economy, it is possible that illegal merging and contracting of businesses can be the cause of…
Q: 19. Which of these statements is true according to the Keynesian (post-Keynesian) view a. Increases…
A: Keynesian believes that demand management is key to restore equilibrium in the economy. The economy…
Q: True/ false Describe Since a greater utility number indicates that a consumer is better off,…
A: The term "utility" describes the overall enjoyment or gain from consuming a good or service. It is a…
Q: Market failures Multiple Choice O O O о are only a concern when they result in prices that are too…
A: Market failure is a situation when the market is fail to allocate resources efficiently. There are…
Q: How do you think the costs of teaching a commerce degree online would compare to the costs of a…
A: A commerce degree could be taught online for less money than on-campus at a university because of…
Q: economy not achieve multiple economic goals simultaneously?
A: Basic features of an economy are - 1) resources our scarce or limited 2) while wants are unlimited…
Q: 2-4. The land of Oz produces dreams (denoted by x) and wishes (denoted by y). The production…
A:
Q: What are economies of scale? Give an example. What are the diseconomies of scale? Give an example.
A: Production cost includes all the direct and indirect costs. With the increase in the firms, the…
Q: Which of the following events will increase the supply of sunscreen? If ________ and no other…
A: Given data, Change in supply When the producers or output of the suppliers of a specific good or…
Q: A coal fired power plant provides power to all of Melbourne: it burns coal to produce electricity,…
A: Given data Total costQ=7Q2+ 40Q The social cost of electricity production 36Q2 Total benefit…
Q: Suppose that you are a consumption smoother. You expect to live for another 28 years. You just…
A: According to the permanent income hypothesis, people will spend money at a rate that is consistent…
Q: 15. If government's spending increases by 60 and marginal propensity to consume is 0.8, how will the…
A: Given information: Government spending increases by 60 i.e., Change in government spending = 60 and…
Q: 3. How can government reduce structucal unemployment? a. by reducing unemployment benefits b. by…
A: Structural unemployment is a classification of unemployment brought about by contrasts between the…
Q: This question examines the expenditures approach to calculating GDP. You will use data on different…
A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…
Q: 4. Add the old demand schedule and the demand schedule for the new students to calculate the new…
A: The distribution of the goods is ideal in a free economy. When a commodity's supply and demand are…
Q: 7. The Phillie Phanatic always eats his ballpark franks in a special way- I foot-long hot dog…
A: DEFINITION A production possibilities curve in economics computes the maximum output of two products…
Q: A new technology lowers the cost of producing a movie. Does this event change the quantity of movies…
A: Non-price factors cause a change in supply whereas quantity supplied is affected by changes in…
Q: Review the neoclassical model's basic microeconomic presumptions regarding customer behavior.
A: Neoclassical model: This term refers to a model in which supply and demand is used to account for…
Q: You explored changes in the prices of bottled water, Gatorade, and a gym membership. Which of these…
A: Substitute goods are those that can be used in place of one another, whereas complementary goods are…
Q: Calculate CPI and TCPI and comment on whether our cost management in the following project is…
A: The CPI is the ratio of the actual cost (AC) of carrying out the project activities to the earned…
Q: A man wishes his son to receive P250,000 ten years from now. What amount should he invest if it will…
A: The present worth technique is very famous in industry since every single future expense and incomes…
Q: Use the accompanying graph to answer these questions. S¹ so 20 18 16 Price of X ($) 14 12 10 9 42
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: Consider a market in which the demand curve is given by P= 1000-50, and the supply curve is given by…
A: "A demand curve shows a negative relation between price and quantity of a good demanded and supply…
Q: Please solve part d and e.... Thank you
A: The market equilibrium (E) occurs when market DD equals market SS, according to market theory. The…
Q: Suppose that the probability of low demand is 0.75. (a) What is the maximum Expected Monetary…
A: The law of demand is a basic rule of economics that states that at a higher price consumers will…
Q: Suppose Malcolm has determined that his marginal utility schedules for used CDs paperback books (PB)…
A: The utility is maximized where marginal utilities derived from per dollar are same across the goods.…
Q: Consider the following equation: Y = F (K, AN) Based on this equation, explain the concepts of…
A: Given, Y=F(K, AN)where, Y is output K is Capital and AN is Effective Labor.Here, Y is a function of…
Q: 4. Explain whether the following statement is True or False or Uncertain, and why. Water rationing…
A: Water restrictions limit specific purposes of water for instance water system of yards, vehicle…
Q: 1. Aunt May wants to set aside money for Peter Parker's future college education. Money can be…
A: Interest rate = 18 % Time = 17 – 6 = 11 years Yearly amount that has to be paid for 4 years after…
Q: Provide an explanation an economist might give showing why each statement is true: - scarcity always…
A: Scarcity exists where the demand tends to be larger than that of availability of resources. Or…
Q: 13. When the Turkish government wants to allow only for automatic stabilizers to work in a…
A: Automatic stabilizers are used when the governments forsees an economic condition and tries to take…
Q: Market (inverse) demand for measles vaccine is given by P= 100-20. Market (inverse) supply for…
A: Given information is, Market (inverse) demand for measles vaccine is given by :- P=100−2Q. Market…
Q: ran Lee plans to set aside $2,600 a year for the next seven years, earning 3 percent. What would be…
A: What money is anticipated to be worth in the future is referred to as future value, or FV. Cash held…
Q: oligopoly
A: A market is defined as the total number of buyers and sellers in a certain area or region. The…
Q: In applying the Ramsey formula for assessing projects in a benefit-cost analysis, the effect a be…
A: Here, Net Present value: It refers to the cash flows that is all present with the firms. It is a…
Q: Consider the maker for gasoline. a. Start in Equilibrium (be sure to label all relevant points) b.…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Step by step
Solved in 2 steps
- Describe a scenario in which a trade surplus benefits an economy and one in which a trade surplus is economy in an economy that performs poorly. What key factor or factors are making the difference in the outcome that results from a trade surplus?Country X has a comparative advantage in producing paper and country Y has a comparative advantage in producing watches. The two countries, however, decide not to specialize and trade. What could explain this decision? (Pick either a, b, c or d) a) there is perfect mobility of factors of production between the countries b) trade is based on absolute rather than comparative advantage c) transport costs are low relative to the opportunity cost differences between the countries d) The exchange rate lies within the countries opportunity cost ratiosTrue/False/Uncertain and Explain Gains from trade arise when countries specialize in producing the goods for which they hold an absolutely advantage and then trade.
- Z and S.A are trading partners. Both produce metal ores (including lithium) and delivery trucks. Now suppose that if Zimbabwe uses all of its resources, it can produce 50,000 tons of metal ores or 100,000 delivery trucks (trading off at a constant rate). Suppose that if South Africa uses all of its resources, it can produce 20,000 tons of metal ores or 80,000 delivery trucks (trading off at a constant rate). What is the direction of the trade (who exports what to whom)? Be sure to give the opportunity costs of production of both goods for both countries.Draw appropriate diagram(s) showing the following:A country (Germany) produces Wheat (W) and Steel (S).Germany has increasing costs.Before trade, Germany produces at a point P, where the internal exchange ratio is1 S = 1 W. Show diagrammatically, and explain thoroughly, whathappens if Germany has the opportunity to trade at 1 S = 2W . Identify all pertinent points and ideas clearly. Given theabove, reflect also on appropriate trade policy responses.Country. Oil. Lumber Uganda. 20. 40 Kenya. 60. 30 * State a country of absolute advantage in each commodity** State the commodity of comparative advantage in each country*** Compute the gains from trade arising from specialisation for each countryc) Using clear diagrams ,explain the concepts of currency appreciation and depreciation arising from changes in exports and imports.
- Summarize Ricardo’s concepts of comparative and absolute advantage. Visually illustrate how gains from exchange come to exist in both scenarios. Give this, why might some countries still insist upon protectionist policies? In what ways might Ricardo be viewed as “formalizing” Smith’s work?A nation’s merchandise trade balance reflects _____. A.the value of exports of servicestrade b. in tangibles and intangibles c.the same information as its balance of payments d.trade in tangible products e.the value of imports of servicesTrade theories suggest that both countries gain from trade. In a 2-country, 2-good model, we assume the 2 states—Futland and Tandam share a common currency (allowing us to ignore exchange rate), they both have the same wages, and they both produce two goods: bicycles and boots. The units of labour requirement are shown below, assuming constant returns to scale. Production Techniques: Units of labour hour required per unit output Tandom Futland Bicycles 90 hours 120 hours Boots 30 hours 50 hours iii. Which country has a comparative advantage in the production of each of the two goods?
- Occasionally, a government official will argue thata country should strive for both a trade surplus and ahealthy inflow of capital from abroad. Explain why sucha statement is economically impossibleTrade theories suggest that both countries gain from trade. In a 2-country, 2-good model, we assume the 2 states—Futland and Tandam share a common currency (allowing us to ignore exchange rate), they both have the same wages, and they both produce two goods: bicycles and boots. The units of labour requirement are shown below, assuming constant returns to scale. Production Techniques: Units of labour hour required per unit output Tandom Futland Bicycles 90 hours 120 hours Boots 30 hours 50 hours Define opportunity cost. Using the table above, calculate the opportunity cost of bicycles in terms of boots and the opportunity cost of boots in terms of bicycles for each of the countries.Do all international financial transactions involve exchanging one currency for another? Could a nation that neither imports nor exports goods and services still engage in international financial transactions? Explain: “U.S. exports earn supplies of foreign currencies that Americans can use to finance imports.”
