Which of the following with respect to Namibia's Balance of Payments would be true if Toyota decided to move its Production plant in Isipingo South Africa to Walvis Bay Namibia ceteris paribus. i. There would be a net inflow of capital ii. There would be a deficit in the financial account iii. There would be a surplus in the financial account iv. There would be an outflow in the current account O A. i, ii, iii, iv OB. i and iii O C. i and ii O D. i, ii and iii
Q: Explain 4 limitations that National Income Statistics have in determining a country's economic…
A: National income statistics estimate the total output produced in a home country. It represents the…
Q: QUESTION 21 Why the AD curve might shift? Tax hikes/cuts. Booms/recessions…
A: Aggregate demand (AD) alludes to the overall demand for labor and products inside an economy at a…
Q: In this market, the equilibrium hourly wage is $ Suppose a senator introduces a bill to legislate a…
A: The research and analysis of the job market and the connections among workers, their employers, and…
Q: Consider an economy which is divided into different sectors, each producing a differentiated…
A: Utility function (Ω): maxΩ=(wi-b)Liη, η>0 subject to Li=Li(wi) Production function is:…
Q: Maria earns $12 per hour in her current job and works 35 hours a week. Her disutility of effort is…
A: Reservation wage is the minimum wage at which the worker is ready to work that makes him indifferent…
Q: Determine the rate of return (ROR) for the following investments. a) Solve using iteration and the…
A: The internal rate of return is the rate of return at which the net present value of the cash flow…
Q: This question has to do with earnings inequality. a. In class we discussed several reasons why…
A: The unequal distribution of wealth across a community or between a particular group of individuals…
Q: Give the formulas for and plot average fixed cost, AFC, marginal cost, MC, average variable cost,…
A: Marginal Cost: it refers to the change in total cost due to 1 additional unit of production. As due…
Q: The figure given below shows the Lorenz curves of two countries (Country A and Country B). Figure…
A: The Lorenz curve is a crucial tool for calculating and visualizing income inequality. It helps…
Q: A small heat pump now costs $2,500 to purchase and install. It has a projected useful life of 12…
A: Given information: Purchase and install cost of heat pump = $2,500 Useful life = 12 years Annual…
Q: Suppose Alex is the only seller in the market for bottled water and Raphael is the only buyer. The…
A: Equilibrium in the market occurs where quantity demanded is equal to quantity supplied.
Q: The demand for haddock has been estimated as: log (Q) = a + b log (P) + c log (I) + d log (Pm) where…
A: The degree of responsiveness of the demand for a commodity to changes in its price is known as the…
Q: We could best describe the 3 C O nominal rate of interest as the inflation-adjusted rate of…
A: In an economy, the inflation rate plays an important role in determining the prevailing level of…
Q: You sell donuts. Your cost per donut is 70 cents. You estimate that you will sell 300 donuts if the…
A: Price refers to the amount of money or other goods or services that must be exchanged to acquire a…
Q: Question 21 As the price level rises, a. The currency depreciates, so net exports fall. b. The…
A: Suppose P : Domestic price level P' : Foreign price level e : nominal exchange rate The real…
Q: In a 100-percent-reserve banking system, if people decided to decrease the amount of currency they…
A: M1 refers to the money supply that includes currency in movement and checkable deposits.
Q: Let Q be the quantity of natural gas in tons from fracking. Assume fracking imposes a negative…
A: Externality refers to the situation of a person engaging in activities that may influence the…
Q: Shoes What is the equation of the price line? O 150-*Shoes O 30-*Shoes O 30-*Butter O 150+ 5 Butter…
A: The curve with a downward slope called the demand curve. The upward-sloping curve is the supply…
Q: ng monopolies, which of the following is true? The demand curve facing the monopolist is different…
A: Monopolist is a single seller in the market and the product he sells has no substitutes for it. As…
Q: share a current news article on international trade that supports the argument economists make in…
A: FTAs are agreements made between two or more nations to lower or remove trade obstacles. These trade…
Q: . Priyanka has an income of £90,000 and is a von Neumann-Morgenstern expected utility maximiser with…
A: Expected utility is a concept in decision theory that helps individuals make rational choices under…
Q: b) What would be the highest price (premium) that she would be willing to pay for an insurance…
A: To determine the highest premium that Priyanka would be willing to pay for full insurance against…
Q: What are the four reasons why aggregate demand curves might shift? Briefly explain each one of them.
A: Aggregate demand is a term used to describe total demand for final goods and services in an economy…
Q: magine a game where individuals can be either cooperative (like splitting a resource) or selfish…
A: Game has following characteristics - Two Players = You & Other Strategy Set You = Strategy Set…
Q: (a) Formulate the Savings Account Balance as a difference equation model. (b) Compute the…
A: A young couple looking to buy a property together currently have savings of $10,000 in a bank…
Q: Briefly and intuitively explain why the wages of skilled workers in both countries home and foreign…
A: Offshoring activities allude to the act of an organization or association relocating specific…
Q: 9.7. A producer operating in a perfectly market has chosen his output level to maximize profit. At…
A: In a perfectly competitive market, there are a large number of buyers and sellers who have easy…
Q: Suppose that real GDP is currently $13.5 trillion and potential real GDP is $14.0 trillion, or a gap…
A: The real GDP is $13.5 trillion. Potential real GDP is $14 trillion Since real GDP is smaller than…
Q: Which of the following would cause the equilibrium price of apple juice to decrease and the…
A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…
Q: which of the following is a government bond that is repaid within 2-10 years? a Treasury note b…
A: Government bonds are debt securities issued by governments to finance their spending needs. They are…
Q: Question (1) A couple have a 3-year-old child; they decided to make annual deposits into a savings…
A: The first deposit was made on the 4th birthday and the last deposit was made on the 15th birthday,…
Q: In 2015, Apple introduced the Apple Watch. Assume that the cost of producing the 38mm Apple Watch…
A: The Lerner Index is an economic measure that is used to estimate the degree of market power held by…
Q: An example of an externality is: a) the irritation you feel when you drive past a gas station…
A: An externality refers to a cost or benefit that influences a third party who didn't decide to cause…
Q: Let the market demand curve be P = 70 - 2Q, and assume all sellers can produce at a constant…
A: a. For a monopolist, the profit-maximizing level of output is where marginal revenue (MR) equals…
Q: The demand curve for a product is given by; Qxd = 1,200 - 3Px - 0.1Pz , where Pz = K300. a) What…
A: The price elasticity of demand weighs the reactivity of shifts in quantity demand to fluctuations in…
Q: Table 18-10 Quantity of Labor 0 1 2 O $500 O $300 O $2,200 Number of Baseballs $2,500 Per Day 0 100…
A: Total revenue is the product of price and quantity. Marginal Revenue is the change in total revenue…
Q: Digital piracy. Suppose the British rock band Radiohead is about to release its new album In…
A: Deadweight loss, in economics, means to the inefficiency and loss of economic welfare caused by…
Q: Suppose that a price-taker firm has a marginal cost function given by: MC= 20+0.2q. The firm could…
A: A market cartel is a type of collusion among independent firms in an industry where they agree to…
Q: A boutique fruit juice manufacturer produces 2 types of juices, Apple and Fig daily with a total…
A: Lagrangian optimization problem has a following setup : Objective function & Constraint…
Q: Consider an economy that only produces and consumes water, milk and meat. Water Price: Quantity:…
A: GDP or gross domestic product is the sum of the value of all end commodities produced within the…
Q: a. Explain 5 export import regulations at Turkey with example.
A: Exports refer to the amount of goods and services that a nation sells to another nation. While…
Q: Your enterprising uncle opens a sandwich shop that employs 9 people. The employees are paid $15 per…
A: Marginal product is the change in total product due to an additional employee hired. Value of…
Q: There are two ways to compare ME alternatives for equal life service: • Least common multiple (LCM)…
A: Option b is the correct answer. Explanation:- The same alternative is selected, because By assuming…
Q: Critically evaluate how happiness is related to economic development. Use Macroeconomics and…
A: Development in an economy is crucial as it leads to the social alteration of an economy. When the…
Q: 1)…
A: Protectionism is the act of the state to help improve the strength and conditions of firms and…
Q: Industry O 50% 0 0% Automotive Fruits Exports $500'000 $150'000 Financial Services $100'000 What is…
A: The Intra-Industry Trade (IIT) Index is a measure of the extent to which a country trades similar…
Q: Can you create a graph showing perfect competition for grocery stores in a rural area ? And explain…
A: Perfect competition is when there are many number of buyers and sellers with no barriers to entry.…
Q: Suppose you are about to borrow $16,000 for four years to buy a new car. Which of these situations…
A: To decide which situation might be favored, let's examine the two options: A. In this example, the…
Q: 29. In conducting monetary policy the Fed authorities a. are aided by their capacity to exert direct…
A: Investment refers to the allocation of resources, with the expectation of generating income,…
Q: An extended rainy season has required many Northwest contractors to upgrade pumps and de-watering…
A: Annual worth analysis: In this method, the equivalent uniform annual cost of each alternative is…
Step by step
Solved in 3 steps
- State whether each of the following events Involves a financial flow to the Mexican economy or a financial flow out of the Mexican economy: Mexico Imports sen4ces from Japan Mexico exports goods to Canada U.S. investors receive a return from past financial investments in MexicoThe GDP for the United States is 18,036 billion and its current account balance is 484 billion. What percent of GDP is the current account balance?If foreign investors buy more U.S. stocks and bonds, how would that show up in the current account balance?
- Why does the trade balance and the current account balance track so closely together over time?For each of the following events/items, state whether the impact is positive(+), negative (-) or no impact (0).a) A Malaysian company has imported from Japan. The Yen appreciates against theRinggit.b) A Malaysian company has imported from Japan. What is the impact if the Ringgitappreciates against the Yen?c) A Malaysian company borrows in Euros from Deutsche Bank. The loan is repayablein six months. The Ringgit appreciates against the Euro.d) What happens if the loan in (c) above is repayable in one lump sum in five yearsfrom now and the Euro now appreciates against the Malaysian Ringgit?e) A Malaysian mutual fund invests in an Australian ETF (exchange traded fund). TheAustralian Dollar appreciates against the Malaysian Ringgit.Imagine that the economy of Germany finds itself in the following situation: the government budget has a surplus of 1% of Germany’s GDP; private savings is 20% of GDP; and physical investment is 18% of GDP. a. Based on the national saving and investment identity, what is the current account balance? b. If the government budget surplus falls to zero, how will this affect the current account balance?
- Consider the following economy:- Mariginal propensity to save = 0.2 Mariginal propensity to import = 0.2 Investment = $500 Governement spending = $300 Taxes = $ 200 Exports = $400 Autonomous import spending = $100 Given this information, What is initial current account balance for the economy? A - Current account deficit of $205 B - Current account deficit of $125 C - Current account surplus of $125 D - Current account surplus of $150 E - None of the above(A) Government spending rises to 1,250. Compute the investment, trade balance, national savings and the equilibrium exchange rate and illustrate graphically. (B) Suppose that the world interest rate rises from 5 to 10 percent (G is again 1,000). Solve for national saving, investmentm trade balance and the equilibrium exchange rate. Explain what you find compared to part (A) and explain graphically.The United States’ total international transactions with other countries in 2005 were: U.S. balance on current account: - $748.7 billionFinancial inflows : + $1295.2 billionFinancial outflows : - $532.6 billion Was the current account in surplus or deficit? Was the capital account in surplus or deficit?Was the overall BOP in surplus or deficit? Please only answer C.) C.) Did the government official reserve transactions account show an increase or decrease of its foreign currency holdings
- You have the following annual data for the New Zealand economy ($bn): GDP (Y) = 190 Gross National Disposable Income (Yd) = 183 Net exports of goods and services (NX) = 5 Private Consumption (C) = 112 Government consumption (G) = 38 Based on this data, complete the following paragraph (enter numbers only). Investment (I) is equal to $____bn. The current account (surplus or deficit?) is equal to $_____bn. The capital account part of the balance of payments (which for the purposes of this question includes both capital and financial accounts) therefore shows a ____ of $_____bn. National savings is equal to $______bn.Pls help with below homwork, Explain why each incorrect answer is incorrect and the correct answer is correct. A current account deficit implies that : Select One : A. the financial account is negative B. the financial account is in surplus C. exports of goods and services exceed imports of goods and services D. unilateral transfers are positive.Which of the following statements is correct? (2)(1) When a British firm invests in a bicycle manufacturing facility in South Africa,the amount concerned is entered as an inflow on the current account of theSouth African balance of payments.(2) When someone purchases a second‐hand car, the transaction is included inthe calculation of GDP in the year the sale took place.(3) A deficit on the current account of the balance of payments indicates thatthe country exported more than it imported during the period in question.(4) In the base year, the value of nominal GDP is equal to the value of real GDP.