Suppose that the world demand for coffee continues to rise, and the Brazilian government keeps investing in the coffee industry but also begins to spend some of its coffee revenue on the country's nontraded service sector. According to the introductory article, which of the following accurately describe the long-term outcome of the high demand for coffee on the market for medical equipment? Check all that apply. As the demand for medical equipment adjusts, the workers begin to return to the manufacturing sector. The manufacturing sector loses its international competitiveness. Brazil's dependence on coffee revenues increases. The manufacturing sector continues to lose resources due to the resource movement effect. As the supply for medical equipment adjusts, the workers be suffer be free Prices of raw materials, such as oil, copper, coffee, or soya, vary signifi In the event of a sudden fall in the world demand for coffee, Brazil will suffer rn to the manufacturing sector. e than prices of manufactured goods common to lagging industries. from the symptoms of the Dutch Disease.

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News Analysis: Dutch Disease. 2) Identifying symptoms of Dutch Disease

 

 

Suppose that the world demand for coffee continues to rise, and the Brazilian government keeps investing in the coffee industry but also begins to
spend some of its coffee revenue on the country's nontraded service sector. According to the introductory article, which of the following accurately
describe the long-term outcome of the high demand for coffee on the market for medical equipment? Check all that apply.
As the demand for medical equipment adjusts, the workers begin to return to the manufacturing sector.
The manufacturing sector loses its international competitiveness.
Brazil's dependence on coffee revenues increases.
The manufacturing sector continues to lose resources due to the resource movement effect.
As the supply for medical equipment adjusts, the workers be
suffer
be free
Prices of raw materials, such as oil, copper, coffee, or soya, vary signific
In the event of a sudden fall in the world demand for coffee, Brazil will suffer
rn to the manufacturing sector.
re than prices of manufactured goods common to lagging industries.
from the symptoms of the Dutch Disease.
Transcribed Image Text:Suppose that the world demand for coffee continues to rise, and the Brazilian government keeps investing in the coffee industry but also begins to spend some of its coffee revenue on the country's nontraded service sector. According to the introductory article, which of the following accurately describe the long-term outcome of the high demand for coffee on the market for medical equipment? Check all that apply. As the demand for medical equipment adjusts, the workers begin to return to the manufacturing sector. The manufacturing sector loses its international competitiveness. Brazil's dependence on coffee revenues increases. The manufacturing sector continues to lose resources due to the resource movement effect. As the supply for medical equipment adjusts, the workers be suffer be free Prices of raw materials, such as oil, copper, coffee, or soya, vary signific In the event of a sudden fall in the world demand for coffee, Brazil will suffer rn to the manufacturing sector. re than prices of manufactured goods common to lagging industries. from the symptoms of the Dutch Disease.
The following graph shows the market for medical equipment in Brazil. The medical equipment is sold at the world price, and the market is currently in
equilibrium. Assume that labor and capital resources move freely between sectors within the country.
Adjust the following graph to show how the changes in the Brazilian market for coffee affect the country's market for medical equipment.
PRICE (DOLLARS PER UNIT OF EQUIPMENT)
The market for medical equipment in Brazil
Supply
Demand
QUANTITY (UNITS OF EQUIPMENT)
Demand
Supply
(?)
Transcribed Image Text:The following graph shows the market for medical equipment in Brazil. The medical equipment is sold at the world price, and the market is currently in equilibrium. Assume that labor and capital resources move freely between sectors within the country. Adjust the following graph to show how the changes in the Brazilian market for coffee affect the country's market for medical equipment. PRICE (DOLLARS PER UNIT OF EQUIPMENT) The market for medical equipment in Brazil Supply Demand QUANTITY (UNITS OF EQUIPMENT) Demand Supply (?)
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