Question 34: thinking locally, we know that today about 24% of economic output in the Buffalo/Niagara Falls metropolitan statistical area is from goods/making activities by over 75% is from services. This is an enormous change from Buffalo‘s days as a manufacturing powerhouse yet the bureau of economic analysis says that the GDP of our metro area has consistently grown, even during the worst of the financial crisis and recession of 2008 to 2010. Which of the following reasons would be relevant to the rise in regional GDP despite manufacturing employment having fallen from 225,000 in 1955 to less than 50,000 in 2020? A buffalostate.open.suny.eduCotton Collecti..(605) PinterestHulu | SeriesAdd cContent - 22JA.Take Test: Final.telfar bag - Go.The Tote BagConContent - 22JA.Question Completion Status:It's good for American oil companies, but it's otherwise irrelevant.It's irrelevant to the price of oil, which is set by the Organization of Petroleum Exporting Countries.O Reduced dependence on imported oil will not in itself reduce the consumer price of petroleum products (the price of a barrel of oil is set by the global marketplaceanyway), but a reduction in imports raises the value of net exports - and GDP is calculated as the sum of consumption, investment, government spending, and net exports.QUESTION 34Thinking locally, we know that today about 24% of economic output in the Buffalo-Niagara Falls Metropolitan Statistical Area is from goods-makingactivities (e.g., manufacturing) but over 75% is from services. This is an enormous change from Buffalo's days as a manufacturing powerhouse. Yet theBureau of Economic Analysis (https://www.bea.gov/) says that the GDP of our metro area has consistently grown, even during the worst of the financialcrisis and recession of 2008-2010.Which of the following reasons may be relevant to the rise in regional GDP despite manufacturing employment having fallen from 225,000 in 1955 to lessthan 50,000 in 2020?Manufacturing employment may have fallen, but the value of manufacturing output has remained as high as before, reflecting an enormous increase in productivity.Growth in financial services, higher education, hospitality, logistics, plus continued growth in manufacturing productivity (even while manufacturing has diminished) have allcreated a more resilient, diversified economy than the heavily goods-oriented economy of the immediate postwar era.O Growth in agriculture - which is now approximately 40% of total regional output -- has made Western New York an exemplary "green" economy, with the added benefit thatgreenhouse-gas emissions have fallen to historically low levels.O None of the above.QUESTION 35Many economists acknowledge that there has been a huge change in the distribution of productivity gains after the mid-1970s. What happened?O Economists from the University of Chicago, led by Milton Friedman, redefined the measure of corporate performance to exclude everything but shareholder value (i.e., stockprice), so there was immense pressure on CEOS and on corporate boards to outsource, globalize, reduce workforces, invest in technology, and engage in tax-avoidanceschemes focused entirely on raising share prices. Once this took effect, the trend became permanent.Globalization, as Paul Krugman and other economists observe, is premised on seeking lower-cost labor -- which became available in the mid-1970s as a result of the"opening" of China. As the economist noted in the film Inside Job, suddenly a global workforce of a couple of hundred million people became a global workforce of a couple ofbillion people. Supply and demand: when the supply became huge, the price of labor plummeted, thereby undercutting the American workfoce.O Unions were broken, tax incentives for automation were legislated, China joined the World Trade Organization, and technology was exported to low-wage countries.O All of the above.Click Save and Submit to save and submit. Click Save All Answers to save all answers.Save All Answers

As the economy grows, the contribution of the service sector to overall GDP increases whereas the…

Answered: Question 34: thinking locally, we know…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC