Evaluating the differences between the balance of trade (BOT) and the balance of payments (BOP).

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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 33, Problem 33.1LO

To determine

Evaluating the differences between the balance of trade (BOT) and the balance of payments (BOP).

Expert Solution & Answer

Explanation of Solution

Balance of trade captures only the goods that are imported and exported by a country. Whereas balance of payments captures all transactions related to goods and services that are recorded. Capital transfers are not included in the balance of trade, but are included in the balance of payments. Balance of trade gives only a partial view of a country’s economic status, whereas balance of payments gives a clear view of economic condition of a country. Balance of trade is a component of the current account balance of payments, while the balance of payment components includes current account as well as capital account.

Economics Concept Introduction

Introduction:

Balance of trade:

Balance of trade is the difference between the value of a country’s imports and exports of goods. It is the largest component of a country’s balance of payments and is used as a measure of relative strength of a country’s economy.

Balance of payments:

The balance of payments furnishes all transactions made between entities in one country with the rest of the world. The transactions include imports and exports of goods and services and capital, as well as transfer payments such as foreign aid and remittances.

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Students have asked these similar questions

The table below provides the total revenues and costs for a small landscaping company in a recent year. Total Revenues ($) 250,000 Total Costs ($) - wages and salaries 100,000 -risk-free return of 2% on owner's capital of $25,000 500 -interest on bank loan 1,000 - cost of supplies 27,000 - depreciation of capital equipment 8,000 - additional wages the owner could have earned in next best alternative 30,000 -risk premium of 4% on owner's capital of $25,000 1,000 The economic profits for this firm are ○ A. $83,000. B. $82,500. OC. $114,000. OD. $83,500. ○ E. $112,500.

Output TFC ($) TVC ($) TC ($) (Q) 2 100 104 204 3 100 203 303 4 100 300 400 5 100 405 505 6 100 512 612 7 100 621 721 Given the information about short-run costs in the table above, we can conclude that the firm will minimize the average total cost of production when Q = (Round your response to the nearest whole number.)

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. Assume that the wage per unit of labour is $20 and the cost of the capital is $100. Labour per unit of time 0 1 Total Output 0 25 T 2 3 4 5 75 137 212 267 The marginal product of labour is at its maximum when the firm changes the amount of labour hired from ○ A. 0 to 1 unit. ○ B. 3 to 4 units. OC. 2 to 3 units. OD. 1 to 2 units. ○ E. 4 to 5 units.

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 33, Problem 33.1LO

To determine

Evaluating the differences between the balance of trade (BOT) and the balance of payments (BOP).

Expert Solution & Answer

Explanation of Solution

Balance of trade captures only the goods that are imported and exported by a country. Whereas balance of payments captures all transactions related to goods and services that are recorded. Capital transfers are not included in the balance of trade, but are included in the balance of payments. Balance of trade gives only a partial view of a country’s economic status, whereas balance of payments gives a clear view of economic condition of a country. Balance of trade is a component of the current account balance of payments, while the balance of payment components includes current account as well as capital account.

Economics Concept Introduction

Introduction:

Balance of trade:

Balance of trade is the difference between the value of a country’s imports and exports of goods. It is the largest component of a country’s balance of payments and is used as a measure of relative strength of a country’s economy.

Balance of payments:

The balance of payments furnishes all transactions made between entities in one country with the rest of the world. The transactions include imports and exports of goods and services and capital, as well as transfer payments such as foreign aid and remittances.

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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 33, Problem 33.1LO

To determine

Evaluating the differences between the balance of trade (BOT) and the balance of payments (BOP).

Expert Solution & Answer

Explanation of Solution

Balance of trade captures only the goods that are imported and exported by a country. Whereas balance of payments captures all transactions related to goods and services that are recorded. Capital transfers are not included in the balance of trade, but are included in the balance of payments. Balance of trade gives only a partial view of a country’s economic status, whereas balance of payments gives a clear view of economic condition of a country. Balance of trade is a component of the current account balance of payments, while the balance of payment components includes current account as well as capital account.

Economics Concept Introduction

Introduction:

Balance of trade:

Balance of trade is the difference between the value of a country’s imports and exports of goods. It is the largest component of a country’s balance of payments and is used as a measure of relative strength of a country’s economy.

Balance of payments:

The balance of payments furnishes all transactions made between entities in one country with the rest of the world. The transactions include imports and exports of goods and services and capital, as well as transfer payments such as foreign aid and remittances.

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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 33, Problem 33.1LO

To determine

Evaluating the differences between the balance of trade (BOT) and the balance of payments (BOP).

Expert Solution & Answer

Explanation of Solution

Balance of trade captures only the goods that are imported and exported by a country. Whereas balance of payments captures all transactions related to goods and services that are recorded. Capital transfers are not included in the balance of trade, but are included in the balance of payments. Balance of trade gives only a partial view of a country’s economic status, whereas balance of payments gives a clear view of economic condition of a country. Balance of trade is a component of the current account balance of payments, while the balance of payment components includes current account as well as capital account.

Economics Concept Introduction

Introduction:

Balance of trade:

Balance of trade is the difference between the value of a country’s imports and exports of goods. It is the largest component of a country’s balance of payments and is used as a measure of relative strength of a country’s economy.

Balance of payments:

The balance of payments furnishes all transactions made between entities in one country with the rest of the world. The transactions include imports and exports of goods and services and capital, as well as transfer payments such as foreign aid and remittances.

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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 33, Problem 33.1LO

To determine

Evaluating the differences between the balance of trade (BOT) and the balance of payments (BOP).

Expert Solution & Answer

Explanation of Solution

Balance of trade captures only the goods that are imported and exported by a country. Whereas balance of payments captures all transactions related to goods and services that are recorded. Capital transfers are not included in the balance of trade, but are included in the balance of payments. Balance of trade gives only a partial view of a country’s economic status, whereas balance of payments gives a clear view of economic condition of a country. Balance of trade is a component of the current account balance of payments, while the balance of payment components includes current account as well as capital account.

Economics Concept Introduction

Introduction:

Balance of trade:

Balance of trade is the difference between the value of a country’s imports and exports of goods. It is the largest component of a country’s balance of payments and is used as a measure of relative strength of a country’s economy.

Balance of payments:

The balance of payments furnishes all transactions made between entities in one country with the rest of the world. The transactions include imports and exports of goods and services and capital, as well as transfer payments such as foreign aid and remittances.

Answer 6

Chapter 33, Problem 33.1LO

To determine

Evaluating the differences between the balance of trade (BOT) and the balance of payments (BOP).

Expert Solution & Answer

Explanation of Solution

Balance of trade captures only the goods that are imported and exported by a country. Whereas balance of payments captures all transactions related to goods and services that are recorded. Capital transfers are not included in the balance of trade, but are included in the balance of payments. Balance of trade gives only a partial view of a country’s economic status, whereas balance of payments gives a clear view of economic condition of a country. Balance of trade is a component of the current account balance of payments, while the balance of payment components includes current account as well as capital account.

Economics Concept Introduction

Introduction:

Balance of trade:

Balance of trade is the difference between the value of a country’s imports and exports of goods. It is the largest component of a country’s balance of payments and is used as a measure of relative strength of a country’s economy.

Balance of payments:

The balance of payments furnishes all transactions made between entities in one country with the rest of the world. The transactions include imports and exports of goods and services and capital, as well as transfer payments such as foreign aid and remittances.

Answer 7

Chapter 33, Problem 33.1LO

To determine

Evaluating the differences between the balance of trade (BOT) and the balance of payments (BOP).

Answer 8

Expert Solution & Answer

Explanation of Solution

Balance of trade captures only the goods that are imported and exported by a country. Whereas balance of payments captures all transactions related to goods and services that are recorded. Capital transfers are not included in the balance of trade, but are included in the balance of payments. Balance of trade gives only a partial view of a country’s economic status, whereas balance of payments gives a clear view of economic condition of a country. Balance of trade is a component of the current account balance of payments, while the balance of payment components includes current account as well as capital account.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Introduction:

Balance of trade:

Balance of trade is the difference between the value of a country’s imports and exports of goods. It is the largest component of a country’s balance of payments and is used as a measure of relative strength of a country’s economy.

Balance of payments:

The balance of payments furnishes all transactions made between entities in one country with the rest of the world. The transactions include imports and exports of goods and services and capital, as well as transfer payments such as foreign aid and remittances.

Answer 12

Ch. 33 - Prob. 33.1LO Ch. 33 - Prob. 33.2LO Ch. 33 - Prob. 33.3LO Ch. 33 - Prob. 33.4LO Ch. 33 - Prob. aFCT Ch. 33 - Prob. bFCT Ch. 33 - Prob. 1CTQ Ch. 33 - Prob. 2CTQ Ch. 33 - Prob. 1FCT Ch. 33 - Prob. 2FCT

Evaluating the differences between the balance of trade (BOT) and the balance of payments (BOP).

Evaluating the differences between the balance of trade (BOT) and the balance of payments (BOP).

Explanation of Solution

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Chapter 33 Solutions