ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
4th Edition
ISBN: 9781285423548
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 19, Problem 2.7PA
To determine
The gains and losses to the economies of countries that deal in the export of sugar.
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7-
: What is the total expenditure made by consumers on the purchase of goods and services called?
a)
Net foreign trade
B)
Savings spending
NS)
Consumption expenditure
D)
investment expenditure
TO)
public spending
7. Japanese labor productivity is roughly the same as that of the United States in the manufacturing sector (higher in some industries, lower in others), while the United States is still considerably more productive in the service sector. But most services are nontraded. Some analysts have argued that this poses a problem for the United States,because our comparative advantage lies in things we cannot sell on world markets.What is wrong with this argument?
19. _______________ topics relate to how much money the country makes in a year, how many resources a country imports and exports in a year, and the number of available jobs in the U.S. at a given time.
Chapter 19 Solutions
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
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Similar questions
Suppose a country has an overall balance of trade so that exports of goods and services equal imports of goods and services. Does that imply that the country has balanced trade with each of its trading partners?
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You have just been put in charge of trade policy for Malawi. Coffee is a recent crop that is growing well and the Malawian export market is developing. As such, Malawi coffee is an infant industry. Malawi coffee producers come to you and ask for tariff protection from cheap Tanzanian coffee. What sorts of policies will you enact? Explain.
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A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market.
PRICE ( DOLLAR PER UNIT)
QUANTITY DEMANDED
(billions of units per year)
QUANTITY SUPPLIED
(billions of unit per year)
10
25
0
12
20
20
14
15
40
16
10
60
18
5
80
20
0
100
Due to the loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S.government reduce the export(or limit the supply of domestic producers) by imposing an export quota of 20 billion units per year. What happens to U.S. price of semiconductors, the quantity of semiconductors bought by U.S. people, and the quantity of semiconductors exported? use the equation to calculate the equilibrium
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38.) What accounts for about two thirds of the value of all Russia's exports and one third of its revenue?
a. oil and natural gas
b. gold and uranium mining
c. fishing and grain farming
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QUESTION 10
Why do countries trade?
International law requires them to.
They have similar comparative advantages.
They have identical comparative advantages.
They have different comparative advantages.
They have identical absolute advantages.
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A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market.
Does the United States have a comparative advantage in producing semiconductors.
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34. To obtain good A in which one does not have a comparative advantage, it is better to acquire it by "indirect production" – producing good B, in which one does have a comparative advantage, and trading it for good A.
True
False
False
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-> Difference between value is exports and imports of goods and services is called trade balance
True/False
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5.
The Gap between Imports and Exports is called as
Question 5 options:
Trade gap
Trade Balance
Trade Deficit
Trading
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10
24. Suppose a small country experiences economic growth that leads to an increased willingness to trade. The country's terms of trade will _____ because the prices of its exports will_____ relative to the price that it has to pay for its imports.
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6-Look at a country’s Terms of Trade (T.O.T.). It is assumed that when the T.O.T. value increases the country’s wellbeing goes up, and when the T.O.T. value declines, the country’s wellbeing is reduced. Do you agree??? Explain!!!
Among others you stated:
“Trade between countries highly depends upon terms of trade. T.O.T. has important effects on the balance of payments or on its economic growth so the T.O.T. is used to measure the wellbeing of the country.”
Further down though…you refute your previous statement by saying:
“But T.O.T. should not be used to calculate wellbeing as its calculation does not show the volume of export of the country, only shows relative changes between countries….”etc.
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A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market.
Due to loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S. government reduce the export (or limit the supply of domestic producers) by imposing an export quota of 20 billion units per year. What happens to U.S. price of semiconductors, the quantity of semiconductors bought by U.S. people, and the quantity of semiconductors exported? [hint: use equation to calculate the equilibrium]
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