19. In balance-of-payments accounting, the sale of a foreign production facility by a SA firm is aitem in the SA balance of payments; the deposit of funds in a foreign bank account by a SA citizenitem in the SA balance of payments.Debit; also is a debitDebit; is a creditCredit, is a debitCredit also is a credit20. The table below shows a section of the national accounts for a small country in 2018. Answer thequestion that follows using the information provided in the table.Consumption expenditureGovernment expenditure9 8003 500Depreciation5002 200ExportsImportsGross capital formation (investment)Primary income paymentsPrimary income receipts19002 500300200The value of Gross Domestic Product (GDP) is:A 16 100B 19 90016 60015 600A, 16. The macroeconomic view of a trade deficit implies that, ather things equal, the imposition of a tariffwill reduce South Africa's trade deficitA Because exports will be promoted and imports cannot possibly changeBecause imports will be reduced and exports cannot possibly changeC Only if the tariff has no impact on South Africa's spending or incomeD Only if the tariff leads to increased income in South Africa relative to its spending17. Consider the case of two countries, Afghanistan and the US, both producing carpets and fighter aircraft.The table below shows output rates per day in the two countries if all resources are fully and efficiently employed.Use this information to answer the question.CarpetsFighter aircraftAfghanistan100US50025If Afghanistan raised its aircraft productivity to 5 units per day, thenA Mutually beneficial trade would no longer be possible.Afghanistan would continue to import fighter aircraft from the US.Afghanistan should switch from the export of carpets to the export of airoraft.The US would retain its comparative advantage in carpet manufacture.B.D.

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19. In balance-of-payments accounting, the sale of a foreign production facility by a SA firm is a item in the SA balance of payments; the deposit of funds in a foreign bank account by a SA citizen item in the SA balance of payments. A Debit; also is a debit Debit; is a credit C Credit; is a debit Credit; also is a credit

19. In balance-of-payments accounting, the sale of a foreign production facility by a SA firm is a item in the SA balance of payments; the deposit of funds in a foreign bank account by a SA citizen item in the SA balance of payments. A Debit; also is a debit Debit; is a credit C Credit; is a debit Credit; also is a credit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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