Suppose there are two countries, B and C, that have no trade and no financial transac- tions with any countries except cach other. B imports a total of goods worth 10 million bollars from C, where a bollar is a unit of B's currency. B has no exports. Which of the following must be true?

Suppose there are two countries, B and C, that have no trade and no financial transac- tions with any countries except cach other. B imports a total of goods worth 10 million bollars from C, where a bollar is a unit of B's currency. B has no exports. Which of the following must be true?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: You have two options for how to spend the afternoon. You can either go see a movie with your…

A: Opportunity cost is what one gives up (or sacrifices) when one chooses one option over another.…

Q: utilities provided by product. Select 3 correct answer(s) Question options: Time Utility…

A: answer is given below

Q: think about a time when you experienced diminishing marginal utility. Then write your own example…

A: The notion of marginal utility in economics describes the extra pleasure or benefit that a customer…

Q: Let Y represent the amount an individual spends on a trip. The individual's utility is a function of…

A: Insurance refers to an agreement in which the company offers a guarantee against the loss/damage…

Q: Which of the following statements about the self-concept is true? Group of answer choices The ideal…

A: The term "self concept" refers to a self-concept formed by one's own views about oneself and others'…

Q: Questions: A) Detail and describe a decision that you made in the past that contradicts the…

A: Consumers try to maximize their utility in order to get maximum satisfaction, consumers, in general,…

Q: life example

A: Pareto-optimality belongs to welfare economics and implies social desirability; whereas…

Q: The goal of the consumer is to maximize the total utility or satisfaction derived from their…

A: The total value or benefits being derived by an individual from the consumption of units of goods or…

Q: Evaluate the one specific law which states that the marginal utility of a good or service declines…

A: The additional pleasure or advantage that a consumer receives from consuming one more unit of an…

Q: A situation that is current combination of goods and services does not give maximum satisfaction is…

A: A situation that is current combination of goods and services does not give maximum satisfaction is…

Q: 24. Which type of cognitive model is often used in Gabrieli's research? a) Computational - b)…

A: John Gabrieli uses neuroanatomical models in most of his investigations to understand the brain's…

Q: You are on a cruise in the Caribbean Sea, which cost $1,000. On this particular day you have the…

A: Cost refers to the expenditure or sacrifice, often in terms of money, time, resources, or effort,…

Q: Signs of life -Summarize in your own words the distinctions between “Wants and ‘ need”

A: Economics is a study of social science, which deals with production, distribution and consumption.…

Q: A recent trend in health insurance is the Health Savings Account (HSA). The idea behind Health…

A: Demand for healthcare refers to the level of consumption of healthcare by an individual in case of…

Q: Distinguish between form, time, and place utility with at least one real example each.

A: Possession utility is the value or utility that a consumer derives from being able to take…

Q: True/False Marginal utility is 0 for the Consumption of the very first unit.

A: the term marginal utility simply means the extra satisfaction which a consumer gets when he consumes…

Q: Which axiom of choice do Lexicographic preferences fail to satisfy?

A: Lexicographic orderings or preferences in economics refer to comparative preferences where an agent…

Q: The satisfaction that comes from making a choice or consuming a good or service is called focus…

A: The subject of economics focuses on how societies distribute scarce resources to meet seemingly…

Q: evi offered to sell his car to Evan for $5,000 cash. Evan responded to Levi's offer by saying: "I…

A: In contract law, a binding agreement is formed when there is an offer, acceptance of that offer, and…

Q: Why do economists use the ceteris paribus assumption?

A: Ceteris paribus: It means that the other things remain constant or the other variables remain…

Q: Marginal utility. Explain.

A: The complete enjoyment gained from the consumption of an item or service is referred to as utility…

Q: What options from the drop box can be chosen as explanation for both questions?

A: A production possibility frontier is a graph that displays many combinations of two potentially…

Q: Using the solution above, compute the indirect utility function

A: We have the optimal values of good x1 and x2 (calculated in the previous part). To find the indirect…

Q: A utility function is given by the equation U = 20xe¬0.1x, where x is the number of glasses o wine…

Q: What is autarky meaning. Need answer in detail.

A: Autarky is an economic concept that refers to a state of self-sufficiency, where a country or an…

Q: If your overall grade point average is 2.0 and you earn a 2.5 GPA this semester, your overall grade…

A: If your overall grade point average is 2.0 and you earn a 2.5 GPA this semester, your overall grade…

Q: What do you think is more realistic approach between cardinal and ordinal approaches to consumer…

A: Ordinal Utility The Ordinal Utility approach in consumer theory is based on the fact that the…

Q: True/False Marginal utility is 0 for the Consumption of the very first unit.

A: Marginal utility can be defined as : The extra satisfaction which a consumer obtains when he…

Q: In what way has the consumer mindset changed in the past few years? Consumers are spending less time…

A: A person who buys and uses a product for consumption is referred to as consumer. The consumer's…

Q: You were presented with a utility maximizing rule which states: If you always choose the item with…

A: A state of maximal satisfaction is referred to as Consumer's Equilibrium. The consumer's equilibrium…

Q: Is the pareto principle generally accepted as true or accurate? Or is it considered not true?

A: The Pareto principle, named after economic specialist Vilfredo Pareto, indicates that 80% of…

Q: Which of the following facts could not be explained by path-dependence? (choose one) A) Sue lives…

A: Path dependence is when the decisions presented to people are dependent on previous decisions or…

Q: Ice cream and cakes are perfect substitutes for a child, and 2 units of ice cream is always worth 3…

A: The utility in terms of economics can be defined as the amount of satisfaction or happiness that a…

Q: Your mother loves books. From an economist's perspective, what is the best gift from the list below,…

A: The resources which are present with the economies tend to be limited in nature, while people have…

Q: For the three-part question that follows, provide your answer to each question in the given…

A: Savings is the practice of putting aside a portion of one's current income for future use, or the…

Q: Peer pressure is an important influence on the behavior of youngsters. For instance, many preteens…

A: The peer pressure is defined influence that has been created on an individual or a group of people…

Q: John currently lives in Sydney where he earns $2700 a week as a high school principal. If he moves…

A: A consumer consumes goods and services to maximize their utility. The utility is the want satisfying…

Q: The diagram below represents a 3-consumer economy, revealing each individual's demand curve (D1, D2,…

A: Assuming all other variables stay constant, a customer's demand curve depicts the link between the…

Q: Task 4: leisure or work? The consumer choice is not restricted to the choice of consumption goods.…

A: Budget constraint refers to the maximum number of items a person can afford with the given resources…

Q: Type out the correct answer ASAP with proper explanation of it . Suppose that in your first year of…

A: The deficit refers to the amount by which a person, organization, or government's expenses exceed…

Q: True or false. Maximizing choices occur when combinations of two goods are made such that they are…

A: An indifference curve is a contour line with the same utility at all points along the line. A line…

Question

Please answer the multiple choice given in the image below. Provide a reasonable explanation for the answer.

25. Suppose there are two countries, B and C, that have no trade and no financial transac-
tions with any countries except each other. B imports a total of goods worth 10 million
bollars from C, where a bollar is a unit of B's currency. B has no exports. Which of
the following must be true?
A. B has a capital account deficit
B. C has a current account deficit
C. C is buying assets from B.
D. The exchange rate of collars per bollar is bigger than 1, where a collar is a unit
of C's currency.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Please see below. Need help with this.
Philip sells homegrown heirloom tomatoes at a local farmer's market. Suppose for the past several weeks, Philip has been selling his tomatoes for $2.25 per pound and he has been selling 90 pounds of tomatoes each week. Suppose this week he drops the price of the tomatoes to $1.75 per pound and as a result of the price drop, he is stilling 110 pounds of tomatoes. (a) Using the midpoint rule, what is the percentage change in the quantity of tomatoes sold from the drop in price? % (Enter your answer as a percentage with no decimals rounded to the nearest whole percent (i.e. 33% or -10%)) 4 (b) Using he midpoint rule, what is the percentage change in the price of Philip's tomatoes? % (Enter your answer as a percentage with no decimals rounded to the nearest whole percent (i.e. 33% or -10%)) (c) Using the midpoint rule, what is the price elasticity of demand for Philips, tomatoes? (Enter your
MRS is defined as: (a) Amount of good Y given up in exchange for good X such that total utility is constant (b) Amount of good X given up in exchange for good Y such that total utility is constant (c) Amount of good Y given up in exchange for good X such that total utility rises (d) Amount of good Y given up in exchange for good X
Explain the components that constitute aconceptual model of consumer behavior.
Choose the best answer from the options below: If you and your friend take turns making decisions about which movies to watch and what restaurants to order take-out from, what is being exemplified by your relationship? symmetrical relationship controlling messages complementary relationship expertise currency
Suppose a consumer with income I has preferences over consumption bundles that can be represented by the utility function U(X,Y) = XY. Suppose the price of X, px, is 1 and the price of Y, py, is 2. At the consumer's optimal consumption bundle, (X*,Y*), what must the value of the ratio be? (a) 10 (b) √5 (c) 4 (d) 2 (e) 8
Answer the given question with a proper explanation and step-by-step solution. Suppose that following graduation you have four job offers. Job 1 is in Spokane Washington, and pays a salary of $50,000 per year, Job 2 is in San Jose California and pays $60,000 per year, Job 3 is in Raleigh NC and pays $45,000 per year, Job 4 is in Sarasota Florida and pays $40,000 per year. If you choose job 4, what is the opportunity cost of this decision?
Fast-and-frugal heuristics fit within the theory of bounded rationality. True False
Suppose you observe a person's answer to two decision problems. Problem 1: You are offered $40 today. What is the minimum amount x you demand one month from today in order to be willing to give up the $40 now? Answer: x = 52. Problem 2: Your are offered $40 today. What is the minimum amount x you demand one year from today in order to be willing to give up the $40 now? Answer: $60. 1. Demonstrate that the rational model of time preferences is violated for this choice pattern. 2. Derive this individual's B and d for the hyperbolic time discounting model. 3. Suppose the utility you get from eating ice cream now is 10 utils. But you pay a cost of -4 utils per hour for the next 4 hours, because it gives you indigestion and makes you feel lethargic. If your hourly B and d for this problem are B = .6 and d = .9, ... 1. What is the total discounted utility of eating ice cream now? 2. What is your total discounted utility now of planning to eat ice cream after lunch tomorrow? 3. Do you eat ice…
Can you explain the Pareto principle
please solve step by step
In order to increase economic activity, a city proposes to allow diesel-powered delivery vehicles to operate in residential neighborhoods. Diesel exhaust contains soot which is a major cause of asthma and other respiratory ailments leading to a decrease in the quality of life in these communties. A neighborhood group opposed to this proposal hires you to conduct a valuation study to show the decrease in the quality of life. a) What specific valuation method should you use? b) How would you use that method? c) What are some problems that might result from your use of that method?