The effect on American import of Japanese cars, Japanese import of American cars, and American export of goods and services.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 30, Problem 1DQ

To determine

The effect on American import of Japanese cars, Japanese import of American cars, and American export of goods and services.

Expert Solution & Answer

Explanation of Solution

The quality of American cars has improved as compared to the cars of other countries, so the American import of Japanese cars would reduce because the quality of American car is better than that of the Japanese cars. Thus, import of Japanese automobiles would fall.

As the quality of American cars has improved, the demand for American cars would increase, in both domestic as well as foreign market.

As a result, there will be an increase in American cars exports and with this there will be an increase in Japanese import of automobiles as well.

There would be no change in the American export of goods and services other than automobiles because only the quality of automobile has increased. There would be no change in the quality of other goods.

Economics Concept Introduction

Concept introduction:

Export:

Export refers to an economic activity in which goods and services produced within the country are sold to foreign countries at the foreign exchange rate.

Import:

Import refers to an economic activity in which goods and services are purchased by a country from a foreign country at the foreign exchange rate.

Want to see more full solutions like this?

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

Students have asked these similar questions

Richard has just opened a new restaurant. Not being good at deserts, he has contracted with Carla to provide pies. Carla’s costs are $10 per pie, and she sells the pies to Richard for $25 each. Richard resells them for $50, and he incurs no costs other than the $25 he pays Carla. Assume Carla’s costs go up to $30 per pie. If courts always award expectation damages, which of the following statements is most likely to be true?

Difference-in-Difference In the beginning of 2001, North Dakota legalized fireworks. Suppose you are interested in studying the effect of the legalizing of fireworks on the number of house fires in North Dakota. Unlike North Dakota, South Dakota did not legalize fireworks and continued to ban them. You decide to use a Difference-in-difference (DID) Model. The numbers of house fires in each state at the end of 2000 and 2001 are as follows: Number of house fires in Number of house fires in Year North Dakota 2000 2001 35 50 South Dakota 54 64 a. What is the change in the outcome for the treatment group between 2000 and 2001? Show your working for full credit. (10 points) b. Can we interpret the change in the outcome for the treatment group between 2000 and 2001 as the causal effect of legalizing fireworks on number of house fires? Explain your answer. (10 points)

C. Regression Discontinuity Birth weight is used as a common sign for a newborn's health. In the United States, if a baby has a birthweight below 1500 grams, the newborn is classified as having “very low birth weight". Suppose you want to study the effect of having very low birth weight on the number of hospital visits made before the baby's first birthday. You decide to use Regression Discontinuity to answer this question. The graph below shows the RD model: Number of hospital visits made before baby's first birthday 5 1400 1450 1500 1550 1600 Birthweight (in grams) a. What is the running variable? (5 points) b. What is the cutoff? (5 points) T What is the discontinuity in the graph and how do you interpret it? (10 points)

Answer 2

Question

Chapter 30, Problem 1DQ

To determine

The effect on American import of Japanese cars, Japanese import of American cars, and American export of goods and services.

Expert Solution & Answer

Explanation of Solution

The quality of American cars has improved as compared to the cars of other countries, so the American import of Japanese cars would reduce because the quality of American car is better than that of the Japanese cars. Thus, import of Japanese automobiles would fall.

As the quality of American cars has improved, the demand for American cars would increase, in both domestic as well as foreign market.

As a result, there will be an increase in American cars exports and with this there will be an increase in Japanese import of automobiles as well.

There would be no change in the American export of goods and services other than automobiles because only the quality of automobile has increased. There would be no change in the quality of other goods.

Economics Concept Introduction

Concept introduction:

Export:

Export refers to an economic activity in which goods and services produced within the country are sold to foreign countries at the foreign exchange rate.

Import:

Import refers to an economic activity in which goods and services are purchased by a country from a foreign country at the foreign exchange rate.

Want to see more full solutions like this?

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

Answer 3

Question

Chapter 30, Problem 1DQ

To determine

The effect on American import of Japanese cars, Japanese import of American cars, and American export of goods and services.

Expert Solution & Answer

Explanation of Solution

The quality of American cars has improved as compared to the cars of other countries, so the American import of Japanese cars would reduce because the quality of American car is better than that of the Japanese cars. Thus, import of Japanese automobiles would fall.

As the quality of American cars has improved, the demand for American cars would increase, in both domestic as well as foreign market.

As a result, there will be an increase in American cars exports and with this there will be an increase in Japanese import of automobiles as well.

There would be no change in the American export of goods and services other than automobiles because only the quality of automobile has increased. There would be no change in the quality of other goods.

Economics Concept Introduction

Concept introduction:

Export:

Export refers to an economic activity in which goods and services produced within the country are sold to foreign countries at the foreign exchange rate.

Import:

Import refers to an economic activity in which goods and services are purchased by a country from a foreign country at the foreign exchange rate.

Want to see more full solutions like this?

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

Answer 4

Question

Chapter 30, Problem 1DQ

To determine

The effect on American import of Japanese cars, Japanese import of American cars, and American export of goods and services.

Expert Solution & Answer

Explanation of Solution

The quality of American cars has improved as compared to the cars of other countries, so the American import of Japanese cars would reduce because the quality of American car is better than that of the Japanese cars. Thus, import of Japanese automobiles would fall.

As the quality of American cars has improved, the demand for American cars would increase, in both domestic as well as foreign market.

As a result, there will be an increase in American cars exports and with this there will be an increase in Japanese import of automobiles as well.

There would be no change in the American export of goods and services other than automobiles because only the quality of automobile has increased. There would be no change in the quality of other goods.

Economics Concept Introduction

Concept introduction:

Export:

Export refers to an economic activity in which goods and services produced within the country are sold to foreign countries at the foreign exchange rate.

Import:

Import refers to an economic activity in which goods and services are purchased by a country from a foreign country at the foreign exchange rate.

Want to see more full solutions like this?

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

Answer 5

Chapter 30, Problem 1DQ

To determine

The effect on American import of Japanese cars, Japanese import of American cars, and American export of goods and services.

Expert Solution & Answer

Explanation of Solution

The quality of American cars has improved as compared to the cars of other countries, so the American import of Japanese cars would reduce because the quality of American car is better than that of the Japanese cars. Thus, import of Japanese automobiles would fall.

As the quality of American cars has improved, the demand for American cars would increase, in both domestic as well as foreign market.

As a result, there will be an increase in American cars exports and with this there will be an increase in Japanese import of automobiles as well.

There would be no change in the American export of goods and services other than automobiles because only the quality of automobile has increased. There would be no change in the quality of other goods.

Economics Concept Introduction

Concept introduction:

Export:

Export refers to an economic activity in which goods and services produced within the country are sold to foreign countries at the foreign exchange rate.

Import:

Import refers to an economic activity in which goods and services are purchased by a country from a foreign country at the foreign exchange rate.

Answer 6

Chapter 30, Problem 1DQ

To determine

The effect on American import of Japanese cars, Japanese import of American cars, and American export of goods and services.

Expert Solution & Answer

Explanation of Solution

The quality of American cars has improved as compared to the cars of other countries, so the American import of Japanese cars would reduce because the quality of American car is better than that of the Japanese cars. Thus, import of Japanese automobiles would fall.

As the quality of American cars has improved, the demand for American cars would increase, in both domestic as well as foreign market.

As a result, there will be an increase in American cars exports and with this there will be an increase in Japanese import of automobiles as well.

There would be no change in the American export of goods and services other than automobiles because only the quality of automobile has increased. There would be no change in the quality of other goods.

Economics Concept Introduction

Concept introduction:

Export:

Export refers to an economic activity in which goods and services produced within the country are sold to foreign countries at the foreign exchange rate.

Import:

Import refers to an economic activity in which goods and services are purchased by a country from a foreign country at the foreign exchange rate.

Answer 7

Chapter 30, Problem 1DQ

To determine

The effect on American import of Japanese cars, Japanese import of American cars, and American export of goods and services.

Answer 8

Expert Solution & Answer

Explanation of Solution

The quality of American cars has improved as compared to the cars of other countries, so the American import of Japanese cars would reduce because the quality of American car is better than that of the Japanese cars. Thus, import of Japanese automobiles would fall.

As the quality of American cars has improved, the demand for American cars would increase, in both domestic as well as foreign market.

As a result, there will be an increase in American cars exports and with this there will be an increase in Japanese import of automobiles as well.

There would be no change in the American export of goods and services other than automobiles because only the quality of automobile has increased. There would be no change in the quality of other goods.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Export:

Export refers to an economic activity in which goods and services produced within the country are sold to foreign countries at the foreign exchange rate.

Import:

Import refers to an economic activity in which goods and services are purchased by a country from a foreign country at the foreign exchange rate.

Answer 12

Ch. 30 - Prob. 1DQ Ch. 30 - Prob. 2DQ Ch. 30 - Prob. 3DQ Ch. 30 - Prob. 4DQ Ch. 30 - Prob. 5DQ Ch. 30 - Prob. 6DQ

The effect on American import of Japanese cars, Japanese import of American cars, and American export of goods and services.

The effect on American import of Japanese cars, Japanese import of American cars, and American export of goods and services.

Explanation of Solution

Want to see more full solutions like this?

Chapter 30 Solutions