Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Chapter 9, Problem 14CQ
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Economics: Private and Public Choice
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- Occasionally, a government official will argue that a country should strive for both a trade surplus and a healthy inflow of capital from abroad. Is this possible?arrow_forwardWhat are the major issues with regard to trade imbalances for low- and middle-income countries?arrow_forwardDoes a trade surplus mean an overall inflow of financial capital to an economy, or an overall outflow of financial capital? What about a trade deficit?arrow_forward
- What three factors will determine whether a nation has a higher or lower share of trade relative to its GDP?arrow_forwardIf imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed imports?arrow_forwardWhat is a trade deficit, and why does it hurt us to consistently run a deficit with another country?arrow_forward
- In the previous problem, do we have a trade surplus or trade deficit?arrow_forwardView the data on the trade balance below. Then answer the questions that follow. Is the United States currently in a trade deficit or a trade surplus situation? What is the most recent amount of deficit or surplus? There’s a time between July 2008 and February 2009 when the value of the trade deficit changed substantially. Did the trade deficit increase or decrease during this time?arrow_forwardWhat is a trade deficit? a) When a country exports more goods than it imports b) When a country's imports and exports are balanced c) When a country imports more goods than it exports d) When a country has no international tradearrow_forward
- In relation to a country's economy, the more a country imports and the worse the current account becomes, what happens?arrow_forwardA country that is spending more than it makes a- unstable b- trade balance c- trade deficit c- trade surplusarrow_forwardHow would you define and explain the balance of payments, and how this concept affects the ability of a country to participate in Global Trade?arrow_forward
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