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Read the following and answer the questions below.In recent years, there has been an increase in international trade which has led toa rise in the volume of imported goods into the UK which has impacted on nationalincome. Many of these goods originate from the countries within the European Union(EU). The exchange rate value of sterling has fallen against the Euro which influencesimport and export prices.
(a) Explain what is meant by the following terms:
(i) "national income";
(ii) "exchange rate".
(b) Explain why most of the UK's trade is with other EU countries.
(c) (i) Suggest 2 benefits of international trade for the UK economy.
(ii) Explain 2 reasons why some countries impose barriers to international trade.
(d) Explain how the recent decrease in the value of sterling against the euro affects the price of UK imports from eurozone countries.
(e) Draw a fully labelled diagram to show the basic circular flow of income.
(f) Explain the likely effect of an increase in the value of imports on the level ofnational income.
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a. Suppose Px= 9, Py= 16, and Income M. Find the utility maximizing quantities of x and y. b. Find the demand function of x and y. c. What are the price elasticities of demand for x and y? What are the income elasticities of demand for x and y? d. Wh..
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