Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 23, Problem 45P
Table 23.7 provides some hypothetical data on
- Calculate the
trade balance and the net inflow of foreign saving for each country. - State whether each one has a trade surplus or deficit (or balanced trade).
- State whether each is a net lender or borrower internationally and explain.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
8. The current price of 3M stock is $87 per share. The previous dividend paid was $5.96, and
the next dividend is $6.25, assuming a growth rate of 4.86% per year.
What is the forward (next 12 months) dividend yield?
Show at least two decimal places, as in x.xx%
%
Joy's Frozen Yogurt shops have enjoyed rapid growth in northeastern states in recent years. From
the analysis of Joy's various outlets, it was found that the demand curve follows this pattern:
Q=200-300P+1201 +657-250A +400A;
where Q = number of cups served per week
P = average price paid for each cup
I = per capita income in the given market (thousands)
Taverage outdoor temperature
A competition's monthly advertising expenditures (thousands)
=
A; = Joy's own monthly advertising expenditures (thousands)
One of the outlets has the following conditions: P = 1.50, I = 10, T = 60, A₁ = 15, A; = 10
1. Estimate the number of cups served per week by this outlet. Also determine the outlet's
demand curve.
2. What would be the effect of a $5,000 increase in the competitor's advertising expenditure?
Illustrate the effect on the outlet's demand curve.
3. What would Joy's advertising expenditure have to be to counteract this effect?
The Compute Company store has been selling its special word processing software, Aceword, during
the last 10 months. Monthly sales and the price for Aceword are shown in the following table. Also
shown are the prices for a competitive software, Goodwrite, and estimates of monthly family income.
Calculate the appropriate elasticities, keeping in mind that you can calculate an elasticity measure
only when all other factors do not change (using Excel). For example, price elasticities, months
1-2.
Month
Price
Aceword
Quantity
Aceword
Family
Income
Price
Goodwrite
1
$120
200
$4,000
$130
21
120
210
4,000
145
3
120
220
4,200
145
4
110
240
4,200
145
90
5
115
230
4,200
145
6
115
215
4,200
125
10
7899
115
220
4,400
125
105
230
4,400
125
105
235
4,600
125
105
220
4,600
115
Chapter 23 Solutions
Principles of Economics 2e
Ch. 23 - If foreign investors buy more U.S. stocks and...Ch. 23 - If the trade deficit of the United States...Ch. 23 - State whether each of the following events...Ch. 23 - In what way does comparing a countrys exports to...Ch. 23 - At one point Canadas GDP was 1,800 billion and its...Ch. 23 - The GDP for the United States is 18,036 billion...Ch. 23 - Why does the trade balance and the current account...Ch. 23 - State whether each of the following events...Ch. 23 - How does the bottom portion of Figure 23.3,...Ch. 23 - Explain the relationship between a current account...
Ch. 23 - Using the national savings and Investment...Ch. 23 - If a country is running a government budget...Ch. 23 - What determines the size of a countrys trade...Ch. 23 - If domestic Investment increases, and there is no...Ch. 23 - Why does a recession cause a trade deficit to...Ch. 23 - Both the United States and global economies are...Ch. 23 - For each of the following, indicate which type of...Ch. 23 - How did large trade deficits hurt the East Asian...Ch. 23 - Describe a scenario in which a trade surplus...Ch. 23 - The United States exports 14 of GDP while Germany...Ch. 23 - Explain briefly whether each of the following...Ch. 23 - If imports exceed exports, is it a trade deficit...Ch. 23 - What is included in the current account balance?Ch. 23 - In recent decades, has the U.S. trade balance...Ch. 23 - Does a trade surplus mean an overall inflow of...Ch. 23 - What are the two main sides of the national...Ch. 23 - What are the main components of the national...Ch. 23 - When is a trade deficit likely to work out well...Ch. 23 - Does a trade surplus help to guarantee strong...Ch. 23 - What three factors will determine whether a nation...Ch. 23 - What is the difference between trade deficits and...Ch. 23 - Occasionally, a government official will argue...Ch. 23 - A government official announces a new policy. The...Ch. 23 - If a country is a big exporter, is it more exposed...Ch. 23 - If countries reduced trade barriers, would the...Ch. 23 - Is it better for your country to be an...Ch. 23 - Many think that the size of a trade deficit is due...Ch. 23 - If you observed a country with a rapidly growing...Ch. 23 - Occasionally, a government official will argue...Ch. 23 - What is more important, a countrys current account...Ch. 23 - Will nations that are more involved in foreign...Ch. 23 - Some economists warn that the persistent trade...Ch. 23 - In 2001, the United Kingdoms economy exported...Ch. 23 - Imagine that the U.S. economy finds itself in the...Ch. 23 - Table 23.7 provides some hypothetical data on...Ch. 23 - Imagine that the economy of Germany finds itself...
Additional Business Textbook Solutions
Find more solutions based on key concepts
The measure of the beta of a stock. Introduction: Beta is an important indicator of the risk of a security. Sto...
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Depreciation Methods, Disposal. Kurtis Koal Company, Inc. purchased a new mining machine at a total cost of 900...
Intermediate Accounting (2nd Edition)
A company has the opportunity to take over a redevelopment project in an industrial area of a city. No immediat...
Engineering Economy (17th Edition)
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (5th Edition)
Define cost pool, cost tracing, cost allocation, and cost-allocation base.
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Questions For Review
12-4. How is the concept of the value package useful in marketing to consumers and industr...
Business Essentials (12th Edition) (What's New in Intro to Business)
Knowledge Booster
Similar questions
- Gordon Dividend Growth Model I downloaded some data about 3M (ticker MMM). Company 3M Ticker MMM Dividends Per Share 2017 $4.70 2018 $5.44 2019 $5.76 2020 $5.88 2021 $5.92 2022 $5.96 4. The dividend payment in 2022 was $5.96 per share. Based on the five-year history, we see that dividends per share grew at a compound annual growth rate of 4.86% $5.96 (1/5) CAGR = $4.70 − 1 = (1.2681)0.20 − 1 = 1.0486 - 1 = 0.0486 = 4.86% - - What should be the 2023 dividend based on these values?arrow_forward4. The data set BWGHT.DTA contains data on births to women in the United States. Two variables of interest are the dependent variable, infant birth weight in ounces (bwght), and an explanatory variable, average number of cigarettes the mother smoked per day during pregnancy (cigs). The following simple regression was estimated using data on n=1,388 births: bwght=119.77 - .514 cigs (i) What is the predicted birth weight when cigs = 0? What about when cigs=20 (one pack per day)? Comment on the difference. (ii) Does this simple regression necessarily capture a causal relationship between the child's birth weight and the mother's smoking habits? Explain. (iii) To predict a birth weight of 125 ounces, what would cigs have to be? Comment. (iv) The proportion of women in the sample who do not smoke while pregnant is about .85. Does this help reconcile your finding from part (iii)?arrow_forwardGiven the demand equation Q following table (using Excel): = 1,500 200P, calculate all the numbers necessary to fill in the Elasticity P Q Point Arc Total Revenue Revenue Marginal $7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50arrow_forward
- Suppose a firm has the following demand equation: where Q = quantity demanded P = product price (in dollars) Q=1,000 3,000P + 10A A = advertising expenditure (in dollars) Assume for the following questions that P =3$ and A = $2,000. 1. Suppose the firm dropped the price to $2.50. Would this be beneficial? Explain. Illustrate your answer with the use of a demand schedule and demand curve. 2. Suppose the firm raised the price to $4.00 while increasing its advertising expenditure by $100. Would this be beneficial? Explain. Illustrate your answer with the use of a demand schedule and a demand curve. (Hint: First construct the schedule and the curve assuming A = $2,000. Then construct the new schedule and curve assuming A = $2,100.)arrow_forwardABC Sports, a store that sells various types of sports clothing and other sports items, is planning to introduce a new design of Arizona Diamondbacks' baseball caps. A consultant has estimated the demand curve to be where Q is cap sales and P is price. Q=2,000 100P 1. How many caps could ABC sell at $6 each? 2. How much would the price have to be to sell 1,800 caps? 3. Suppose ABC were to use the caps as a promotion. How many caps could ABC give away free? 4. At what price would no caps be sold? 5. Calculate the point price elasticity of demand at a price of $6.arrow_forward1. What are the basic information related to the BPO industry in the Philippines? 2. Top 15 BPO industries here in the Philippines. 3. Significance to certain economies. 4. What services are being outsourced?arrow_forward
- Select a real-world case situation relevant to credit analysis and lending in Guyana. Use this case which you either know about already or have identified through research and address the following questions in essay format: i. Outline and discuss what “triggered” the regulatory body to intervene? ii. How effective do you think the response was to such a crisis? iii. Outline and discuss two ways that could be used to strengthen the current regulatory environment?arrow_forwardHome can produce a maximum of 400 apples or a maximum of 600 bananas.Foreign can produce a maximum of 160 apples or a maximum of 800 bananas.(a) Graph and label Homes PPF. Label each axis and the slope. Use numbers.1(b) In the absence of trade, what is Homes autarky price of apples in terms of bananas?(c) Graph and label Foreigns production possibility frontier. Use numbers and label the slope.(d) Graph the world relative supply curve. Use numbers.23. (8 pts - RM) Now suppose world relative demand for apples takes the following form:Demand for apples/demand for bananas - price of bananas/price of apples. That is, RDA = Pbananas Papples(a) Graph the relative demand and relative supply curves on the world market diagram. Use numbers(b) What is the equilibrium (world) relative price of apples? (c) Show that both Home and Foreign gain from Trade and describe the pattern of trade.arrow_forwardA village has six residents, each of whom has accumulated savings of $100. Each villager can use this money either to buy a government bond that pays 18 percent interest per year or to buy a year-old llama, send it onto the commons to graze, and sell it after 1 year. The price the villager gets for the 2-year-old llama depends on the quality of the fleece It grows while grazing on the commons. That in turn depends on the animal's access to grazing, which depends on the number of llamas sent to the commons, as shown in the following table: Number of 11amas on the commons Price per 2- year-old 11ama ($) 1 125 2 119 3 116 4 113 5 6 111 109 The villagers make their investment decisions one after another, and their decisions are public. a. If each villager decides Individually how to Invest, how many llamas will be sent onto the commons, and what will be the resulting village Income? Number of llamas: [ 20 Instructions: Enter your response as a whole number. Village Income: $ 110 b. What is…arrow_forward
- 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 travel nurses at a regional hospital. Name Gender Height Minimum Wage (Inches) (Dollars per week) Cho F 65 $297 Frances F 64 $316 Latasha F 68 $336 Dmitri M 70 $355 Jake M 71 $374 Rosa F 65 $393 Nick M 72 $420 Brian M 71 $439 Tim M 66 $451 Alyssa F 68 $478 The lowest weekly wage that the hospital can spend in order to hire five travel nurses is ________. Suppose the hiring director of the hospital prefers taller candidates because they think it will increase revenue, and so they impose a requirement that all newly hired travel nurses must have a height of at least 68 inches. With this mandate in place, the weekly wage rate the hospital now must pay in order to hire five travel nurses increases by ________.arrow_forward5. 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_____.arrow_forwardnot use ai pleasearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co