You are the Minister of Trade for a small island country in the South Pacific with the following monthly production possibilities curve: 500 450 400 350 300 250- 200 150 100 50 500 450 lemonade You are negotiating a deal with a neighboring island that has the following monthly PPC: 400+ 350 300 250 200 150- 100+ 50 50 100 150 200 250 300 350 400 pias lemonade + 50 100 150 200 250 300 350 400 pias Refer to the graphs above. Both countries specialize exclusively in the product for which they have a comparative advantage. You have agreed to sell them 160 bottles of lemonade in exchange for 100 pizzas. After the trade, your country has a total of bottles of lemonade and pizzas. A. 400; 100. B. 400; 200. OC. 160; 200. D.240; 100.
Q: Assume that the following data describe the current condition of the commercial banking system:…
A: Required reserve is the minimum amount every commercial bank needs to keep reserve from all deposits…
Q: How do you keep track of how much money is in your account?
A: Money is anything which is used and widely accepted as medium of exchange. It is used to purchase…
Q: Aggregate expenditures ($billions) 800 600 400 200 =AE conomy of Arkinia 200 400 Income ($billions)…
A: The total quantity of goods and services demanded and the price level are inversely related, as…
Q: A person needs $19,000 immediately as a down payment on a new home. Suppose that she can borrow this…
A: Compounding in economics refers to the process of earning interest on both the principal amount…
Q: A market is contested by two firms, A and B, who compete in selling a homoge- neous good. Market…
A: Market demand function : Q = 240 - 3P Inverse demand : P = 80 - 0.33Q MC for firm A = 20 Cost…
Q: Babar's Bakery made $200 last month selling 100 loaves of bread. This month it made $350 selling 70…
A: The Price elasticity of demand determines how much is consumed when a product's price varies.…
Q: Current Spot Rates. Use the table currency exchanges? a. Japanese yen/U.S. dollar exchange rate b.…
A: International Fischer Effect (IFE) gives the relation between exchange rate and nominal inflation…
Q: POLICY PERSPECTIVES If the price level increases by 0.2 percent for every $100 billion increase in…
A: MONEY MULTIPLIER The amount of reserves kept by banks and the amount of new money created in the…
Q: In an economy, the working-age population is 400 million. Of this total, 300 million workers are…
A: Unemployment rate is the rate where persons who are neither nor unemployed are not considered in the…
Q: To be officially unemployed a person must: Select one: reach 21 years of age or older. be in the…
A: Unemployment refers to the rate of individuals in an economy that do not have a job even after…
Q: 16. If an economy suffers simultaneous negative aggregate demand and aggregate supply shocks, and…
A: Negative aggregate demand shocks decrease the aggregate demand at each price level and shift the…
Q: Explain 3 reasons why opening a checking account would benefit you?
A: A checking account refers to a type of bank account that allows you to deposit money and withdraw…
Q: Consider the Solow Model. Suppose a country enacts a tax policy that discourages investment, and the…
A: The Solow Growth Model or exogenous model of economic growth that studies changes in the level of…
Q: What effects do commodities, principally agricultural commodities, i.e., food, have had on the…
A: Agriculture has played a pertinent role in the economic development of many countries. It has…
Q: The table describes hypothetical employment statistics for a country in a given year. Full-time…
A: The unemployment rate is the ratio of people who are of working age who are without work, nd have…
Q: supply schedules of a certain commodity. Based on this information, answer questions 1, 2, 3 and 4…
A: Equilibrium is the level at which supply and demand curves are equal . At this level there is no…
Q: (Table: Marginal Utility per Dollar of Twix) Use Table: Marginal Utility per Dollar of Twix. The…
A: Marginal utility of a good or service describes how much pleasure is gained or lost by consumers as…
Q: Q.2. This table below shows the production possibilities for the United States. State the…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Greg has the following utility function: u = x47x953. He has an income of $52.00, and he faces these…
A: Equivalent Variation: When the price of a good changes and hence the consumption bundle, that new…
Q: explain two (2) points in briefabout this statement: "price is the determination of Allah S.W.T'.
A: Price determination is the process by which the market determines the price of a good or service. It…
Q: Americans spend an average of 23.6 hours per week online, with a standard deviation of 7. The…
A: Since the distribution of internet watching is not necessarily normally distributed, we cannot use…
Q: You plan to deposit $100 at the end of every quarter (3 months) for 8 years starting at the end of…
A: future value is the value of the cashflow after a given period of time including given interest rate…
Q: Solve for the Equilibrium Situation A B C D E Price and Equilibrium Quantity Price Quantity Demanded…
A: Equilibrium price and equilibrium quantity occur where the quantity demanded and quantity supplied…
Q: We need to use implicit differentiation to derive comparative statics results in the case where: O…
A: Implicit differentiation is a mathematical technique used to find the derivative of an implicit…
Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…
A: GDP is the sum of consumption, investment, government expenditure and net exports in an open…
Q: 24. Last year, posted its in six years. The loss was a surprise to investors because the industry as…
A: The expression unemployment implies a situation where a person actively searches for employment but…
Q: Binsula, Kinsula and Tinsula are three small islands. The only final goods produced are books (B),…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three subparts for…
Q: Question 2 cheddar, y is the price per pound of mozzarella. 4x+2y+z=26 3x+2y+5z=39 2x+y+4z=27 Full…
A: Given, x, y and z are the prices of the three products respectively. Given the equations, we need to…
Q: QUESTION 30 According to Adam Smith, the success of market economies is primarily due to: A. The…
A: Adam Smith is considered to be one of the most influential economists in history, and his ideas…
Q: Assume we have market with N>1 identical individuals who have individual demand functions q;=1 - p.…
A: The demand function is a mathematical representation of the relationship between the quantity of a…
Q: Why are supply functions typically assumed to slope upwards in competitive markets? Because barriers…
A: Supply curve is a graphical representation of the correlation between the cost of a good or service…
Q: If the CPI for January 2008 is 208.837 and the CPI for December 2018 is 255.539, wh is the average…
A: CPI measures the value of market basket of goods and services purchased by a buyer. Inflation in an…
Q: log(LE) = a + bx log(GNIPPP) + cx log(HEXP) + d x LTU Select the Null and Alternative Hypotheses for…
A: The econometrics model estimated above has an intercept term(a) , b is the parameter that examines…
Q: The multiplier process depicted in the following table is based on an MPC of 0.75. Instructions:…
A: The part of disposable income which is spent on the purchase of goods and services is known as the…
Q: Explain too. True/False Opportunity cost refers to the cost of best next foregone.
A: Opportunity cost refers to the cost of giving up the next best alternative in order to pursue a…
Q: Suppose that, in a competitive market without government regulations, the equilibrium price of soft…
A: The price ceiling is the government-imposed maximum price for a product. A price ceiling is binding…
Q: Define capitation as related to managed
A: Health economics is the study of how to make health care more unbiased, accessible, and affordable…
Q: (Table Investment Projects) Use Table: Investment Projects. If the market interest rate declines…
A: Given: Project ROR(%) Cost of investment (in $'s) F 20 500 G 18 300 H 16 1000 I 14 200…
Q: n the above graph, suppose equilibrium is at point D. What would cause equilibrium to shift to point…
A: The equilibrium is established where the demand and supply are equal. The change in demand and…
Q: Q8) Marginal Physical Product Given the productivity information in the table, Instructions: In…
A: Marginal physical product is the change in output produced due to change in units of input.
Q: Evaluate this statement The mutually preferred outcome in a prisoner's dilemma is the Nash…
A: The Nash equilibrium is a concept in game theory named after John Nash, a Nobel Prize-winning…
Q: Using the graph, complete the table that follows by indicating whether each statement is true or…
A: Elasticity of supply measures the responsiveness of quantity supplied with respect to change in…
Q: A tax on sellers will shift the O demand curve upward by the amount of the tax. demand curve…
A: Demand curve shows different levels of quantities demanded at different prices. Supply curve shows…
Q: Which of the following is a positive statement? O Interest rate is too low.
A: Positive statements are those statements that can be checked whether it is true or false. It is…
Q: Q5) Consumer Surplus 1,050,000 1.000.000 950,000- Price (dollars per car). 900,000- 850.000-…
A: Consumer surplus is the difference between maximum price a consumer is willing to pay and market…
Q: The market for gravel has the following demand and supply relationships: Supply function: Q = 100P -…
A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…
Q: In the graph above, suppose equilibrium is at point D. The price of the good is expected to rise in…
A: In the free economy, the equilibrium price and quantity is determined by the forces of demand and…
Q: Refer to the News Wire to answer three questions. NEWS WIRE: FISCAL STIMULUS: TAX CUTS Trump Tax…
A: Disposable income is the money you have cast aside from your income after you pay taxes. It's…
Q: Which of the following is an inferior good? Group of answer choices toilet paper second hand clothes…
A: Inferior good: When an individual decreases the consumption of a certain commodity as his income…
Q: Consider an economy in which the marginal product of labour is given by MPN = A(150 − N), where N is…
A: Labour market: labour market is a market where the firms and households interact. The firms demand…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 07. Under open trade, (a) country 1 will be importing and country 2 exporting 12 units at a price of $10. (b) country 1 will be importing and country 2 exporting 9 units at a price of $11. (c) country 2 will be importing and country 1 exporting 15 units at a price of $11. (d) country 2 will be importing and country 1 exporting 9 units at a price of $14. (e) country 2 will be importing and country 1 exporting 9 units at a price of $11.If the United States were to lift existing tariffs on steel imports: Question 32 options: A.the supply of steel shifts to the right and lowers its market price. B.the demand for steel shifts to the right. C.the supply of the imported steel shifts to the left and raises its market price. D.the demand for steel shifts to the left and raises its market price. Please type out the correct step by step answer with proper explanation of the each option given within 40 50 minutes . Will give you thumbs up only for the correct answer. Thank you .QUESTION 28 wine 90 80 70 60 250 Portugal 40 30 20 PPF 10 0 0 10 20 30 40 50 60 cloth CPF wine 28. Which country is exporting wine? a) Portugal b) England c) Neither d) Both e) Cannot tell England 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 60 clot PPF CPF
- For all questions, refer to the graph on the reverse side. Use this graph for 1 – 4. The graph represents the market for coffee. Estimation may be necessary, so show work. Assuming the market outcome, and a world price of $6.50 calculate the following: Price Qddom Qsdom Imports or exports Redo all parts of #1 assuming a world price of $3.50. Redo all parts of #1 assuming a world price of $3.50 and a tariff of $0.50. Redo all parts of #1 assuming a world price of $3.50 and a quota of 60. Name a good that will see increased sales due to the tariff or quota above. Name a good besides coffee that will see decreased sales due to the tariff or quota above. Suppose that 1 US$ = 1.5 South African Rand. Also, suppose that the representative good, peanut butter, is $3 per jar in the US and 4 Rand per jar in SA. How will this situation affect the exchange market for U.S. dollars? Explain/show the effect(s) of these prices. Include the initial effect(s), the market…Question 10 Hot Dogs 60 50 25 20 Pb-3/4 Country 1 d 50 60 90 100 3/4 Hot Dog for 1 Hamburger 1/2 Hot Dog for 1 Hamburger 1 Hot Dog for 3/2 Hamburger O 1 Hot Dog for 3/4 Hamburger Hot Dogs Pa 1/2 120 110 70 8 Hamburgers What are the terms of trade between the two countries? Pa=3/2 b' Country 2 10 d' 20 40 Pb' 3/4 HamburgersProduction Data Country of Joem - Production Possibilities Corn (tons) Sugar (tons) 01 2 3 4 8 6 4 2 0 Country of Annia - Production Possibilities Corn (tons) Sugar (tons) 0 1 2 3 4 16 12 8 4 0 Preferred Bundle without trade Joem Annia Corn (tons) 2 2 Sugar (tons) 4 8 SCENARIO: You work for a consulting firm that advises countries on trade policy. The countries of Joem and Annia both produce corn and sugar. You have been asked to analyze the opportunity costs and comparative advantages to recommend an efficient trading relationship. Consider the production data provided. Prepare a brief report that: 1. Calculate and compare the opportunity costs of producing 1 unit of corn and 1 unit of sugar in each country. Which country has the lower opportunity cost for each good? 2. Determine which good each country has a comparative advantage in producing sugar and which one has a comparative advantage in producing corn. Explain your analysis. 3. Recommend a trading relationship that allows the…
- (a) You have read all the time that trade brings net benefits to nations open to it. But are there any costs or drawbacks that come with open global trade? (b) Consider a country that is open to trade, but is using protectionist policies like tariffs and quotas. Why do you think that most consumers do not vigorously oppose these protectionist policies? (c) Suppose the country in (b) imports and exports goods and services from more than 80 different nations, but the bulk of its imports and exports tend to come from the same five nations. What might be the reasons that the majority of its imports and exports come from only five different nations as opposed to being more evenly spread across the 80 different nations that it trades with?Auto Volta are planning to launch an import line of electric batteries and electric chargers going in parallel with the global change movement , they will be offering direct installment , maintenance ..etc all what comes within in such type of business with a potential investment (1 million EGP), from your studies : What can be the Barriers of International Trade that they might face in their importing process in the time being where the world is suffering the rise of Corona virus threats Auto Volta are planning to launch an import line of electric batteries and electric chargers going in parallel with the global change movement , they will be offering direct installment , maintenance ..etc all what comes within in such type of business with a potential investment (1 million EGP), from your studies : What can be the Barriers of International Trade that they might face in their importing process in the time being where the world is suffering the rise of Corona virus threatsSuppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523 units of Food or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5000. (d) Which country has the comparative advantage in food? In fuel? Explain. (e) Which good(s) should each country specialize in?
- A country will choose to protect an industry to promote future comparative advantage instead of exploiting its current comparative advantage when: (a) The interest rate is high. (b) Time horizon of decision-making is long. (c) There are fixed cost in technology investments. (d) The growth rate of expertise is low.Exporting from the US Pros: transportation costs would be low. Since it would be produced locally, we would also be able to maintain control of the technology, quality, and production process. More jobs would be created. Cons: Cost of exporting goods would be higher and we would have to comply with the tariffs and regulations to export our goods. Labor cost, shipping & distribution would make price of our good higher. Taste and preferences is different in every country/nation so we would have to possibly change our models to fit those taste of Western Europe. License a European firm Pros: Low startup cost if working with a manufacturer so pricing would remain to a minimum. Gain name recognition in European countries, which will help with our expansion. Working with a company that's knowledgeable in the market Cons: Less control over production cost, quality, and technology. Licensing would require discloure to our technology & competitive advantage would decrease if they use…Poor country Rich country Wheat Cloth 6 8 2 20 (a) What are the opportunity cost ratios for these two countries? (b) Show how each country could gain from trade if the poor country could produce (before trade) 3 wheat for 1 cloth and the developed country could produce (before trade) 2 wheat for 5 cloth, and if the exchange ratio (with trade) was 1 wheat for 2 cloth. (c) Would they both still gain if the exchange ratio was (1) 1 wheat for 1 cloth; (2) 1 wheat for 3 cloth?