Measuring the openness of an economy The following table contains information on two hypothetical nations, Steelvania and Brownitopia, that exist as part of a larger hypothetical international economy. Use the information provided to compute the openness measure for each country. Exports Imports GDP Openness Measure Country (Billions of dollars) (Billions of dollars) (Billions of dollars) Brownitopia 24 21 125 ________ Steelvania 106 97 145 ___
Measuring the openness of an economy The following table contains information on two hypothetical nations, Steelvania and Brownitopia, that exist as part of a larger hypothetical international economy. Use the information provided to compute the openness measure for each country. Exports Imports GDP Openness Measure Country (Billions of dollars) (Billions of dollars) (Billions of dollars) Brownitopia 24 21 125 ________ Steelvania 106 97 145 ___
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Measuring the openness of an economy
The following table contains information on two hypothetical nations, Steelvania and Brownitopia, that exist as part of a larger hypothetical international economy.
Use the information provided to compute the openness measure for each country.
Exports
|
Imports
|
|
Openness Measure
|
|
---|---|---|---|---|
Country |
(Billions of dollars)
|
(Billions of dollars)
|
(Billions of dollars) | |
Brownitopia | 24 | 21 | 125 |
________
|
Steelvania | 106 | 97 | 145 |
_________
|
Based on your calculations, you can conclude that Steelvania is relatively _____ (less or more) open than Brownitopia.
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