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1) Pretend you are a trade economist providing advice to the government of a newly emerging African country. Present (neutrally) both the case for and against a trade policy based on import substitution. You may use specific international (real-world) experiences to support your case for and against such a policy.
2) Is it possible for a country to have, simultaneously, a current account deficit along with a balance of payments surplus? Explain your answer with reference to the significance and meaning of each of the BOP accounts. Be sure to discuss the possible implications for official international reserve flows (i.e. the reserve portion of the financial account).
Which of the following statements uses economic vocabulary correctly?
The Australian government is concerned about inter-generational equity problems. Key problems arise from a larger number of older retired people being supported by a smaller workforce of young people, and from ever increasing budget deficits to be pa..
Even though China's has been better than before to take up its global responsibilities, why has its performance been mixed in the view of other countries?
There are pros and cons if policymakers use monetary and fiscal policy to stabilize the economy. Explain the main arguments in favor of economic stabilization. Explain why policy lags could make stabilization policies counterproductive.
Jack is in the umbrella making business. The economic cost of each umbrella is $2. Illustrate what are the formulae for both the average economic cost curve and marginal cost curve.
Which of following arguments is president using to justify trade restriction on ball bearings.
Illustrate what is the present equivalent of the overhaul expenses at time 0. Illustrate what is the yrly equivalent expense during only yrs 5-13.
Suppose that the production of $1 million worth of steel in Mexico requires $100,000 worth of taconite. Mexico's nominal tariff rates for importing these goods are 20 percent for steel and 10 percent for taconite. Given this information, calculate th..
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is su..
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to
The following relationships describe the economy of a random, fictitous country: Sketch the IS curve and LM curve for 1998 on a diagram and show the point where the interest rate and output are determined. Show what happens in the diagram if the mone..
A farmer sells cotton to a clothing company for $1,000 and the clothing company turns the cotton into T-shirts that it sells to a store for a total of $2,000. How much did GDP increase a result of these transactions?
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