Q: China had a $214 billion overall current account surplus in 2012
China had a $214 billion overall current account surplus in 2012. Assuming that China’s net debt forgiveness was zero in 2012 (its capital account balance was zero), by how much did Chinese purchases...
See AnswerQ: Suppose that a country has a trade surplus of $50 billion
Suppose that a country has a trade surplus of $50 billion, a balance on the capital account of $10 billion, and a balance on the current account of -$200 billion. The balance on the capital and financ...
See AnswerQ: Explain how the absolute per capita income gap between rich and poor
Explain how the absolute per capita income gap between rich and poor nations might increase, even though per capita income (or output) is growing faster in DVCs than in IACs.
See AnswerQ: Assume that a very tiny and very poor DVC has income per
Assume that a very tiny and very poor DVC has income per capita of $300 and total national income of $3 million. How large is its population? If its population grows by 2 percent next year while its t...
See AnswerQ: True or False: A DVC that has little in the way
True or False: A DVC that has little in the way of natural resources is destined to remain poor.
See AnswerQ: Answer the following questions, which relate to measures of concentration:
Answer the following questions, which relate to measures of concentration: a. What is the meaning of a four-firm concentration ratio of 60 percent? 90 percent? What are the shortcomings of concentrat...
See AnswerQ: Examine the following game tree. Fred and Sally are planning on
Examine the following game tree. Fred and Sally are planning on running competing restaurants. Each must decide whether to rent space or buy space. Fred goes first at decision node F. Sally goes secon...
See AnswerQ: Consider an oligopoly industry whose firms have identical demand and cost conditions
Consider an oligopoly industry whose firms have identical demand and cost conditions. If the firms decide to collude, then each one will want to produce the amount of output that it would if it were:...
See AnswerQ: Suppose that a government wants to reduce its economy’s dependence on coal
Suppose that a government wants to reduce its economy’s dependence on coal and decides as a result to tax coal mining companies $1 per ton for every ton of coal that they mine. Assuming that coal mini...
See AnswerQ: Consider the effect that corporate profit taxes have on investing. Look
Consider the effect that corporate profit taxes have on investing. Look back at Figure 15.4. Suppose that the r line is the rate of return a firm earns before taxes. If corporate profit taxes are impo...
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