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Concept explainers
In 2001, the United Kingdom’s economy exported goods worth
- Calculate the U.K. merchandise
trade deficit for 2001. - Calculate the current account balance for 2001.
- Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
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Chapter 23 Solutions
Principles of Economics 2e
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- The table below contains 2014 balance of payments accounts for Germany (in billions of Euros). Calculate the merchandise trade balance, the balance on goods and services, and the current account balance. Exports of goods services and income receipts (credits) 2,095 Exports of goods and services 1,756 Goods 1,479 Services 277 Primary income receipts 259 Secondary income receipts 78 Imports of goods services and income payments (debits) 1,814 Imports of goods and services 1,510 Goods 1,179 Services 330 Primary income payments 171 Secondary income payments 132 Merchandise trade balance (balance on goods) Balance on goods and services Current account balancearrow_forwardIf the Philippines' Net Export accounts to 12,561,324, while Net Import amounts to 11,421,125... then the Philippines has? Trade Surplus, Unfavorable Trade Deficit, Favorable Trade Deficit, Unfavorable Trade Surplus, Favorablearrow_forwardFor the past year, a country has 200 million of exports of goods and services, 160 million of imports of goods and services, 60 million of income received from foreigners, and − 40 million of net unilateral transfers. What is the range of values for income paid to foreigners, so that each of the following would be true? a. The country has a current account surplus. b. The country has a deficit for its goods and services balance. c. The country is a net borrower from the rest of the world.arrow_forward
- What would be the Export of goods if imports of goods are $100 and balance of trade is $70arrow_forwardUse the information in the following table on Mexico’s 2007 international transactions to answer 1. What is the current account?arrow_forwardSuppose you know that exports for a nation are $24 billion and imports are $25 billion, Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Complete the balance of payments table below using the information above. Current Account (billions) Credits 24 $ Financial Account (billions) Credits Capital Account (billions) Credits Debits Debits Debits $30 $26 $4 $7 b. What is the net balance of each account? Current account: $[ billion Financial account: $ billion Capital account: $ billion c. What is the sum of all accounts? %24 billionarrow_forward
- What are two significant aspects of the domestic economy and one significant aspect of the international economyarrow_forwardIn 1992, 18.6 million Canadians visited the United States, but only 11.8 million U.S. residents visited Canada. By 2002, roles had been reversed: more U.S. residents visited Canada than vice versa. Why did the tourism reverse direction? Canada didn’t get any warmer from 1992 to 2002 – but it did get cheaper. The reason is a large change in the exchange rate: in 1992 Canadian dollar was worth $0.80, but by 2002 it had fallen in the value by 20% to about $0.65. This means that Canadian goods and services, particularly hotel rooms and meals, were about 20% cheaper for Americans in 2002 compared to 1992. American vacations had become 20% more expensive for Canadians. Canadians responded by vacationing in their own country or in other parts of the world. Foreign travel is an example of a good that has a high price elasticity of demand: elasticity=4.1. One reason is that foreign travel is a luxury good for most people – you may regret not going to Paris this year, but you can live…arrow_forwardSuppose 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 partnersarrow_forward
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
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