7. Study Questions and Problems #7All real-world economies are mixed economies. Even so, the U.S. economy is described as capitalist, while the Cuban economy is described ascommunist, because compared to Cuba, the United States has muchcentral planning.Grade It NowSave & ContinueContinue without saving

Communist economies have more central planning compared to capitalist economies, though all…

Answered: 7. Study Questions and Problems #7 All…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 23CTQ: A balanced federal budget and a balance of trade are secondary goals of macroeconomics, while growth...

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Similar questions

What is splitting up the value chain?
What are the drawbacks to analyzing the global economy on a regional basis?
Can you think of ways that globalization has helped you economically? Can you think of ways that it has not?
What factors does Paul Krugman identity that supported expanding international trade in the 1800s?
Why do you think that most modern countries economies are a mix of command and market types?
Why do you think labor standards and working conditions are lower in the low-income countries of the world than in countries like the United States?
How does comparative advantage lead to gains from trade?
Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil and tons of lumber the workers can produce. Use these numbers to answer the rest of this question. Draw a production possibilities frontier for each country. Assume there are 100 workers in each country. Canadians and Venezuelans desire both oil and lumber. Canadians want at least 2,000 tons of lumber. Mark a point on their production possibilities where they can get at least 3,000 tons. Assume that the Canadians specialize completely because they figured out they have a comparative advantage in lumber. They are willing to give up 1,000 tons of lumber. How much oil should they ask for in return for this lumber to be as well off as they were with no trade? How much should they ask for if they want to gain from trading with Venezuela? Note: We can think of this ask as the relative price or trade price of lumber. Is the Canadian ask you identified in (b) also beneficial for Venezuelans? Use the production possibilities frontier graph for Venezuela to show that Venezuelans can gain from trade.
Explain why converging economies may present a strong argument for limiting flows of capital but not for limiting trade.
Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but do they have special expertise to judge whether or not the policy should be undertaken?
What are some ways that governments can help people who lose from trade?
What do economists mean when they refer to improvements in technology?

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