(a) To calculate: The merchandise trade balance by using the given data. Concept Introduction: The periodical evaluation of trade balance, i.e., the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.

Question

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Answer 1

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 18, Problem 1.1PA

To determine

(a)

To calculate:

The merchandise trade balance by using the given data.

Concept Introduction:

The periodical evaluation of trade balance, i.e., the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.

Expert Solution

Explanation of Solution

Merchandise Trade Balance = Merchandise Export – Merchandise Import

= $350 – $2425 = −$2,075

Here, the merchandise trade balance is -$2,075 billion. The negative balance indicates a trade deficit.

To determine

(b)

To calculate:

The balance on goods and services.

Expert Solution

Explanation of Solution

Balance on Goods and Services = Export of Goods and Services – Import of Goods and Services Export of Goods and services = $350 + $2145 = $2495

Import of Good and services = $2425 + $170=$2595

Balance on Goods and Services = $2495−$2595=−$100

Here, the balance on goods and services is -$100 billion. The negative balance indicates a trade deficit.

To determine

(c)

The balance on current account by using the given data.

Expert Solution

Explanation of Solution

Balance on Current Account = Net Income Transferred – Inflow of Foreign Currency

= $221.5 – $100.0= $121.5

Here, the balance on current account is $121.5 billion.

To determine

(d)

The financial account balance using the given data.

Expert Solution

Explanation of Solution

Financial Account Balance = Capital Inflow – Capital Outflow = 100.0 – 245.0= −$145.0

Here, the financial account balance is -$145.0 billion. The negative balance indicates a trade deficit.

To determine

(e)

The statistical discrepancy using the given data.

Expert Solution

Explanation of Solution

Statistical Discrepancy = Capital Outflow – Net Income Transferred = 245.0 – 221.5 = $23.5

Here, the statistical discrepancy is $23.5 billion.

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5. Discrimination in the labor market The following table exhibits the name, gender, height, and minimum wage 10 people are willing to accept to work as human resource specialists at a large financial firm. Name Gender Height Minimum Wage (Inches) (Dollars per week) Paolo M 67 $298 Ginny F 63 $311 Lucia F 66 $332 Eric M 71 $354 Kenji M 69 $375 Sharon F 66 $397 Paolo M 70 $411 Carlos M 70 $440 Van M 64 $452 Amy F 69 $474 The lowest weekly wage that the financial firm can spend in order to hire five human resource specialists is____. Suppose the hiring director of the financial firm prefers taller candidates because they think it will increase revenue, and so they impose a requirement that all newly hired human resource specialists must have a height of at least 67 inches. With this mandate in place, the weekly wage rate the financial firm now must pay in order to hire five human resource specialists increases by_____.

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Answer 2

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 18, Problem 1.1PA

To determine

(a)

To calculate:

The merchandise trade balance by using the given data.

Concept Introduction:

The periodical evaluation of trade balance, i.e., the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.

Expert Solution

Explanation of Solution

Merchandise Trade Balance = Merchandise Export – Merchandise Import

= $350 – $2425 = −$2,075

Here, the merchandise trade balance is -$2,075 billion. The negative balance indicates a trade deficit.

To determine

(b)

To calculate:

The balance on goods and services.

Expert Solution

Explanation of Solution

Balance on Goods and Services = Export of Goods and Services – Import of Goods and Services Export of Goods and services = $350 + $2145 = $2495

Import of Good and services = $2425 + $170=$2595

Balance on Goods and Services = $2495−$2595=−$100

Here, the balance on goods and services is -$100 billion. The negative balance indicates a trade deficit.

To determine

(c)

The balance on current account by using the given data.

Expert Solution

Explanation of Solution

Balance on Current Account = Net Income Transferred – Inflow of Foreign Currency

= $221.5 – $100.0= $121.5

Here, the balance on current account is $121.5 billion.

To determine

(d)

The financial account balance using the given data.

Expert Solution

Explanation of Solution

Financial Account Balance = Capital Inflow – Capital Outflow = 100.0 – 245.0= −$145.0

Here, the financial account balance is -$145.0 billion. The negative balance indicates a trade deficit.

To determine

(e)

The statistical discrepancy using the given data.

Expert Solution

Explanation of Solution

Statistical Discrepancy = Capital Outflow – Net Income Transferred = 245.0 – 221.5 = $23.5

Here, the statistical discrepancy is $23.5 billion.

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Answer 3

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 18, Problem 1.1PA

To determine

(a)

To calculate:

The merchandise trade balance by using the given data.

Concept Introduction:

The periodical evaluation of trade balance, i.e., the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.

Expert Solution

Explanation of Solution

Merchandise Trade Balance = Merchandise Export – Merchandise Import

= $350 – $2425 = −$2,075

Here, the merchandise trade balance is -$2,075 billion. The negative balance indicates a trade deficit.

To determine

(b)

To calculate:

The balance on goods and services.

Expert Solution

Explanation of Solution

Balance on Goods and Services = Export of Goods and Services – Import of Goods and Services Export of Goods and services = $350 + $2145 = $2495

Import of Good and services = $2425 + $170=$2595

Balance on Goods and Services = $2495−$2595=−$100

Here, the balance on goods and services is -$100 billion. The negative balance indicates a trade deficit.

To determine

(c)

The balance on current account by using the given data.

Expert Solution

Explanation of Solution

Balance on Current Account = Net Income Transferred – Inflow of Foreign Currency

= $221.5 – $100.0= $121.5

Here, the balance on current account is $121.5 billion.

To determine

(d)

The financial account balance using the given data.

Expert Solution

Explanation of Solution

Financial Account Balance = Capital Inflow – Capital Outflow = 100.0 – 245.0= −$145.0

Here, the financial account balance is -$145.0 billion. The negative balance indicates a trade deficit.

To determine

(e)

The statistical discrepancy using the given data.

Expert Solution

Explanation of Solution

Statistical Discrepancy = Capital Outflow – Net Income Transferred = 245.0 – 221.5 = $23.5

Here, the statistical discrepancy is $23.5 billion.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 18, Problem 1.1PA

To determine

(a)

To calculate:

The merchandise trade balance by using the given data.

Concept Introduction:

The periodical evaluation of trade balance, i.e., the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.

Expert Solution

Explanation of Solution

Merchandise Trade Balance = Merchandise Export – Merchandise Import

= $350 – $2425 = −$2,075

Here, the merchandise trade balance is -$2,075 billion. The negative balance indicates a trade deficit.

To determine

(b)

To calculate:

The balance on goods and services.

Expert Solution

Explanation of Solution

Balance on Goods and Services = Export of Goods and Services – Import of Goods and Services Export of Goods and services = $350 + $2145 = $2495

Import of Good and services = $2425 + $170=$2595

Balance on Goods and Services = $2495−$2595=−$100

Here, the balance on goods and services is -$100 billion. The negative balance indicates a trade deficit.

To determine

(c)

The balance on current account by using the given data.

Expert Solution

Explanation of Solution

Balance on Current Account = Net Income Transferred – Inflow of Foreign Currency

= $221.5 – $100.0= $121.5

Here, the balance on current account is $121.5 billion.

To determine

(d)

The financial account balance using the given data.

Expert Solution

Explanation of Solution

Financial Account Balance = Capital Inflow – Capital Outflow = 100.0 – 245.0= −$145.0

Here, the financial account balance is -$145.0 billion. The negative balance indicates a trade deficit.

To determine

(e)

The statistical discrepancy using the given data.

Expert Solution

Explanation of Solution

Statistical Discrepancy = Capital Outflow – Net Income Transferred = 245.0 – 221.5 = $23.5

Here, the statistical discrepancy is $23.5 billion.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 1.1PA

To determine

(a)

To calculate:

The merchandise trade balance by using the given data.

Concept Introduction:

The periodical evaluation of trade balance, i.e., the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.

Expert Solution

Explanation of Solution

Merchandise Trade Balance = Merchandise Export – Merchandise Import

= $350 – $2425 = −$2,075

Here, the merchandise trade balance is -$2,075 billion. The negative balance indicates a trade deficit.

To determine

(b)

To calculate:

The balance on goods and services.

Expert Solution

Explanation of Solution

Balance on Goods and Services = Export of Goods and Services – Import of Goods and Services Export of Goods and services = $350 + $2145 = $2495

Import of Good and services = $2425 + $170=$2595

Balance on Goods and Services = $2495−$2595=−$100

Here, the balance on goods and services is -$100 billion. The negative balance indicates a trade deficit.

To determine

(c)

The balance on current account by using the given data.

Expert Solution

Explanation of Solution

Balance on Current Account = Net Income Transferred – Inflow of Foreign Currency

= $221.5 – $100.0= $121.5

Here, the balance on current account is $121.5 billion.

To determine

(d)

The financial account balance using the given data.

Expert Solution

Explanation of Solution

Financial Account Balance = Capital Inflow – Capital Outflow = 100.0 – 245.0= −$145.0

Here, the financial account balance is -$145.0 billion. The negative balance indicates a trade deficit.

To determine

(e)

The statistical discrepancy using the given data.

Expert Solution

Explanation of Solution

Statistical Discrepancy = Capital Outflow – Net Income Transferred = 245.0 – 221.5 = $23.5

Here, the statistical discrepancy is $23.5 billion.

Answer 6

Chapter 18, Problem 1.1PA

To determine

(a)

To calculate:

The merchandise trade balance by using the given data.

Concept Introduction:

The periodical evaluation of trade balance, i.e., the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.

Expert Solution

Explanation of Solution

Merchandise Trade Balance = Merchandise Export – Merchandise Import

= $350 – $2425 = −$2,075

Here, the merchandise trade balance is -$2,075 billion. The negative balance indicates a trade deficit.

Answer 7

Chapter 18, Problem 1.1PA

To determine

(a)

To calculate:

The merchandise trade balance by using the given data.

Concept Introduction:

The periodical evaluation of trade balance, i.e., the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.

Answer 8

Expert Solution

Explanation of Solution

Merchandise Trade Balance = Merchandise Export – Merchandise Import

= $350 – $2425 = −$2,075

Here, the merchandise trade balance is -$2,075 billion. The negative balance indicates a trade deficit.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

(b)

To calculate:

The balance on goods and services.

Expert Solution

Explanation of Solution

Balance on Goods and Services = Export of Goods and Services – Import of Goods and Services Export of Goods and services = $350 + $2145 = $2495

Import of Good and services = $2425 + $170=$2595

Balance on Goods and Services = $2495−$2595=−$100

Here, the balance on goods and services is -$100 billion. The negative balance indicates a trade deficit.

Answer 13

To determine

(b)

To calculate:

The balance on goods and services.

Answer 14

Expert Solution

Explanation of Solution

Balance on Goods and Services = Export of Goods and Services – Import of Goods and Services Export of Goods and services = $350 + $2145 = $2495

Import of Good and services = $2425 + $170=$2595

Balance on Goods and Services = $2495−$2595=−$100

Here, the balance on goods and services is -$100 billion. The negative balance indicates a trade deficit.

Answer 15

Expert Solution

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

To determine

(c)

The balance on current account by using the given data.

Expert Solution

Explanation of Solution

Balance on Current Account = Net Income Transferred – Inflow of Foreign Currency

= $221.5 – $100.0= $121.5

Here, the balance on current account is $121.5 billion.

Answer 19

To determine

(c)

The balance on current account by using the given data.

Answer 20

Expert Solution

Explanation of Solution

Balance on Current Account = Net Income Transferred – Inflow of Foreign Currency

= $221.5 – $100.0= $121.5

Here, the balance on current account is $121.5 billion.

Answer 21

Expert Solution

Answer 22

Expert Solution

Answer 23

Expert Solution

Answer 24

To determine

(d)

The financial account balance using the given data.

Expert Solution

Explanation of Solution

Financial Account Balance = Capital Inflow – Capital Outflow = 100.0 – 245.0= −$145.0

Here, the financial account balance is -$145.0 billion. The negative balance indicates a trade deficit.

Answer 25

To determine

(d)

The financial account balance using the given data.

Answer 26

Expert Solution

Explanation of Solution

Financial Account Balance = Capital Inflow – Capital Outflow = 100.0 – 245.0= −$145.0

Here, the financial account balance is -$145.0 billion. The negative balance indicates a trade deficit.

Answer 27

Expert Solution

Answer 28

Expert Solution

Answer 29

Expert Solution

Answer 30

To determine

(e)

The statistical discrepancy using the given data.

Expert Solution

Explanation of Solution

Statistical Discrepancy = Capital Outflow – Net Income Transferred = 245.0 – 221.5 = $23.5

Here, the statistical discrepancy is $23.5 billion.

Answer 31

To determine

(e)

The statistical discrepancy using the given data.

Answer 32

Expert Solution

Explanation of Solution

Statistical Discrepancy = Capital Outflow – Net Income Transferred = 245.0 – 221.5 = $23.5

Here, the statistical discrepancy is $23.5 billion.

Answer 33

Expert Solution

Answer 34

Expert Solution

Answer 35

Expert Solution

Answer 36

Ch. 18 - Prob. 1.1PA Ch. 18 - Prob. 1.2PA Ch. 18 - Prob. 2.3PA Ch. 18 - Prob. 3.4PA Ch. 18 - Prob. 4.5PA Ch. 18 - Prob. 4.6PA Ch. 18 - Prob. 4.7PA

Explanation of Solution

(b) To calculate: The balance on goods and services.

Explanation of Solution

(c) The balance on current account by using the given data.

Explanation of Solution

(d) The financial account balance using the given data.

Explanation of Solution

(e) The statistical discrepancy using the given data.

Explanation of Solution

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Chapter 18 Solutions

(b)

To calculate:

The balance on goods and services.

(c)

The balance on current account by using the given data.

(d)

The financial account balance using the given data.

(e)

The statistical discrepancy using the given data.