Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 8PA
Subpart (a):
To determine
Impact of trade in the perfect competition .
Subpart (b):
To determine
Impact of trade in the perfect competition.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
1. Free international trade stimulates economic growth by _____________________________________________.
Group of answer choices
a. extracting all the available gains from specialization and trade
b. funding basic education and by ensuring high standards in skills such as language, mathematics, and science
c. funding basic research and allocating public funds to their highest-valued use
d. incentivizing saving and investment for capital accumulation as well as tax incentives to promote saving
2. What did psychologist Pam A. Mueller (Princeton University) and marketing professor Daniel M. Oppenheimer (UCLA) find when they studied about 67 Princeton University students taking notes by hand and on laptops while watching TED talks?
Group of answer choices
a. They did not find any difference between the groups taking notes and their performance on tests.
b. They found those using laptops were more inclined to take verbatim notes and performed worse on tests.
c. They found…
What is the definition of Capital Flight?
What are the causes of Capital Flight?
How to recovery from Capital Flight?
Summarize the Venezuela economy and oil dependency as an example of Capital Flight.
Mention another case of an economy as an example of capital flight. Discuss the causes and consequences in that economy, and suggest some policy can help such economies to recover from capital flight phenomena
The capital accumulation theory of economic growth that economies attain growth through saving invested in increasing the capital resources in the economy fails to take account of which of the following factors?
a) For capital accumulation to produce economic growth it has to be the right type of capital that can be applied to the production of goods desired by society.
b) The capital created has to be efficient. Savings may be squandered by producing capital goods that consume a lot of resources to produce, produce poor quality goods, or are wasteful of other resources.
c) For capital to be productive there must be appropriate infrastructure including transportation and communication systems, banking and legal systems, as well as requisite natural resources and often appropriately skilled labor.
d) Societies may still squander the wealth created by capital accumulation and in the long-run limit the growth of the economy.
e) All of the above
Knowledge Booster
Similar questions
- Would the following events usually lead to capital deepening? Why or why not? A weak economy in which businesses become reluctant to make long-term investments in physical capital. A rise in international trade. A trend in which many more adults participate in continuing education courses through their employers and at colleges and universities.arrow_forwardExplain why converging economies may present a strong argument for limiting flows of capital but not for limiting trade.arrow_forwardWhich of the following statements are correct? state which ones are definitely incorrect and why. a. Capital grows when investment is higher than depreciation b. The growth rate of capital increases when investment is higher than depreciation c. For a given rate of depreciation of capital, a rise in the ratio of investment to capital will raise the growth rate of capital d. There are no rich countries wth low investment ratios, and no poor countries with high investment ratios e. A country can only invest more than it saves if it borrows from abroad. f. The scatter diagram of capital output ratios vs investment rates does not show a perfect correlation. Therefore there is something wrong with the model of the way capital grows g. A country that increases its saving rate will be able to have more rapid growth of capital for as long as it maintains this higher savig rate h. A country that increases its saving rate will be able to have more rapid…arrow_forward
- A) The prediction that population growth and growing affluence would outstrip supply would mean rising prices over time due to oil shortages. B) Both the 1970s and the 2000s oil price hikes were due to the demand curve shifting to the right. C) The sharp fall in the oil price after the global financial crisis of 2008 was due to the supply curve shifting to the right. D) The prediction that technological advancement to find new resources and extract them more efficiently would outweigh increases in demand would mean rising prices over time due to oil shortages.arrow_forwardWhat is the opportunity cost of investing in Capital? Do you think a country can overinvest in capital? What is the opportunity cost of investing in human capital? Do you think a country can overinvest in human capital? Explain and give the example in country that overinvest in capital and human capital!arrow_forwardWhat is the opportunity cost of investing in Capital? Do you think a country can overinvest in capital? What is the opportunity cost of investing in human capital? Do you think a country can overinvest in human capital? Explain with your own language and give the example of country that overinvest in capital and human capital!arrow_forward
- Briefly explain and critically evaluate the role of public and private investment in Pakistan. Also point out their role in achieving sustainable economic growth of Pakistan.arrow_forwardCanadian real GDP per capita is 50,097 (measured in constant 2017 USD, same for thefollowing numbers) in the year 2019 and 40,489 in the year 1999. Canadian real capital stockper capita is 226,225 in the year 2019 and 155,256 in 1999. Calculate the growth rate of GDPper capita in Canada for these two decades, as well as the contribution from productivitygrowth and that from capital accumulation. You can use a capital share α of 1/3.arrow_forwardTrue or false? If false, explain why.a. Technological advance, which to date has played a relatively small role in U.S. economic growth, is destined to play a more important role in the future.b. Many public capital goods are complementary to private capital goods.c. Immigration has slowed economic growth in the United States.arrow_forward
- Answer the following: (Choose the options below) Q#5) Consider a prosperous country with an advanced economy which could invest trillions into its current capital stock – either moving “up” its current productivity “curve” (PC) or shifting to a new and higher productivity (PC) curve. Which approach is likely best for increasing the country’s living standards (Real GDP Per Person) through time? a) A continuous build-up of the current capital stock with established technology will achieve more – capital “deepening” with more capital for each worker. b) R&D that supports “cutting edge” invention and innovation will propel labor productivity to far higher levels – with higher quality capital Q#6) What is the best explanation for the correct answer to Q#5? An advanced economy will be a wealthy nation with a large capital stock and a high ratio of capital to labor. Thus, when expanding with standard capital…arrow_forwardOman is using capital - intensive methods of production. This statement is related to _____. a. For whom to produce? b. How to produce these goods? c. What goods to produce? d. Where to produce?arrow_forward(a). Provide a definition of ‘technological capability’ and ‘social capability’ and describe the differences between them. Why can we say that innovation has a ‘systemic’ nature? (b). Financial development, social capital, favourable business regulation, trade openness are different aspects of ‘social capability’ influencing innovation processes and, therefore, economic development. Make a ranking of these factors according to their observed degree of importance for economic development. Explain why ‘inclusiveness’ and ‘equality in opportunities’ can strengthen the innovation capability of an economy. (c). Figure 1 below shows the cross-country correlation between the development of the education system and the level of economic development. Analyse Figure 1 by arguing about the importance of the education system for economic development in low, emerging, and developed countries. Please answer all the parts of this question.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
- Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage LearningBrief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning