10. Strengths and weaknesses of the three basic types of economies Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of Directavia, a nation with a pure command economy. Which of the following would you include in your report as weaknesses of Directavia's economy? Check all that apply. ☐ Workers' earnings are unequal, relative to a market economy. The economy cannot quickly change the type of goods being produced to meet new priorities. Many goods are available only through a black market. The economy experiences persistent shortages and surpluses.

10. Strengths and weaknesses of the three basic types of economies Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of Directavia, a nation with a pure command economy. Which of the following would you include in your report as weaknesses of Directavia's economy? Check all that apply. ☐ Workers' earnings are unequal, relative to a market economy. The economy cannot quickly change the type of goods being produced to meet new priorities. Many goods are available only through a black market. The economy experiences persistent shortages and surpluses.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 22CTQ: You just got a job in Washington, D.C. You move into an apartment with some acquaintances. All your...

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10. Strengths and weaknesses of the three basic types of economies Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of Directavia, a nation with a pure command economy. Which of the following would you include in your report as weaknesses of Directavia's economy? Check all that apply. O Firms have no incentive to produce the so-called public goods, such as national defense, because private firms cannot prevent nonpayers from enjoying the benefits of public goods. O The economy cannot quickly change the type of goods being produced to meet new priorities. O Because government is responsible for all production, the variety of products tends to be limited. O Because nobody in particular owns resources, each person has less incentive to employ them in their highest-valued use, so some resources are wasted.
29. Assume a Ricardian, constant-cost world. There are two countries, the United States and Canada. Each country can produce cameras and milk. The table below shows production per man-hour for each country. United Canada States Cameras 2 Milk 1 2 The United States has a labor force of 1,000 workers, and Canada has a labor force of 500 workers. a) Use this information to graph production possibilities frontiers for both countries. Put cam- eras on the horizontal axis. b) Assuming that a world price is established at which both countries can gain from trade, show possible consumption frontiers for each country.
4- Decisions for Tomorrow Suppose the hourly wage rate is $24 in the United States and $3 in China, and productivity is 20 units per hour in the United States and 4 units per hour in China. Please round your responses to two decimal places. a. What are per unit labor costs in the United States? per unit of labor b. What are per unit labor costs in China? per unit of labor c. If a company's goal is to minimize per unit labor costs, where would the production facility be located? China or the United States?
15. Consider an economy divided into an agricultural sector (A) and an industrial sector (I). To produce 4- one unit in sector A requires unit from A and unit from I. To produce one unit in sector I requires unit from A and 4 unit from I. Suppose final demands in each of the two sectors are 60 units. Write down the input-output matrix equation for this economy, and then find the number of units that have to be produced in each sector in order to meet the final demands.
8. Comparative advantage and import competition Bulgaria recently joined the European Union (EU) and faces intense import competition from other EU members, such as Greece. Suppose you have the following data on labor productivity for footwear and beef production in Bulgaria and Greece. Assume that footwear and beef production are measured in constant dollars reflecting the value of the products. Use the Ricardian model to analyze possible effects on each country's footwear and beef industries when answering the questions that follow. Sales per Employee Footwear Beef Country (Dollars per year) (Dollars per year) Bulgaria 52,000 26,000 Greece 78,000 31,200 The table suggests that Greece has an absolute advantage over Bulgaria in and a comparative advantage in footwear The table suggests that wages in Bulgaria are in Greece. beef neither product As a result of Bulgaria's joining the EU, employment in Bulgaria is likely to both products True or False: The degree of openness of the…
1)Changes in macroeconomic indicators can often be of relevance to business decision making . for instance changes in macroeconomics performance reflected in indicators can impact things such as firms profit forecast, expected sales growth , expansion plans. Assume you are employed as a business analyst with a large Mining based company. Identify and discuss how the macroeconomics issues may be relevant to the firm. b) Appreciation of the Dollar relative to other major currencies c) THe government abolish subsidies to the mining industries
16. The input-output (million dollar) table for a two-sector economy is given as follows: |Input to sector AInput sector B Final Demand Total Output Output from Sector A Output from Sector B Other inputs Total Input 6 7 1 ? ? a. What is the basic assumption underlying the input- output model? b. Complete the above table (fill-entries denoted by ?). c. Write the matrix of technical coefficients. d. Calculate the total output required from each sector when the final demands are 12 and 9 respectively.
Figure 2-4 50 45 40 25 35 30 28 25 20 15 10 5 V Z 10 20 30 40 50 60 70 80 opak Refer to Figure 2-4 Suppose this economy is producing at point W. Which of the following statements would best explain this situation? a) The economy lacks the resources to produce at a more desirable point. b) The economy's available technology prevents it from producing at a more desirable point. c) There is widespread unemployment in the economy. d) Any of the above statements would be a legitimate explanation for this situation.
157.In an economy with flexible prices, competitive factor markets, and fixed supplies of the factors of production, graphically illustrate the impact of a deadly virus that kills a large part of the labor force, but leaves the other factors of production untouched, ceteris paribus. Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium values; iv. the direction the curves shift; and v. the terminal equilibrium values. Explain in words how the equilibrium values change. 158.Assume that the production function is given by Y = AK0.5L0.5, where Y is GDP, K is capital stock, and L is labor. The parameter A is equal to 10. Assume also that capital is 100, labor is 400, and both capital and labor are paid for their marginal products. a.What is Y? b.What is the real wage of labor? c.What is the real rental price of capital (the amount of output paid per unit of capital)? 159.Assume that GDP (Y) is 6,000. Consumption (C). is given by the equation C = 600 + 0.6(Y…
1.9 Read the following extract and answer the question that follows. (4 marks)Unrest and economic underperformance haunt the emerging worldAt the start of the century, developing economies were a source of unbounded optimism and fierce ambition. Today South Africa is reeling from an insurrection, Colombia has suffered violent protests and Tunisia faces a constitutional crisis. Illiberal government is in fashion. Peru has just sworn in a Marxist as its president and independent institutions are under attack in Brazil, India and Mexico.Source: https://www.economist.com/leaders/2021/07/31/unrest-and-economic-underperformance-stalk-the-emerging-worldAccessed: 20/08/21 According to economic theory, the above occurrences come as a result of emerging markets failing to accomplish which of the following objectives? a) Price stabilityb) Balance of payments stabilityc) Economic growthd) Full employment
Background Imagine that you work for the World Bank and you have been called to Ghana to aid the new president to come up with a new international trade strategy. You are told that the new government is interested in moving away from agriculture and into manufacturing. To do so, the government wants to pursuit a policy of import substitution industrialization (ISI). You are given a brief about Ghana highlighting the following points: About half of Ghana’s population depends on agriculture, but Ghana still imports some of its food. The majority of Ghana's people live in rural areas and exist on a subsistence way of life. Ghana has one of the highest rates of income inequality in the world. Nearly half of the population is employed in agriculture. Explain import substitution industrialisation and how it can affect Ghana. What role does learning by doing play and when does it make sense for the government to interfere?
Background Imagine that you work for the World Bank and you have been called to Ghana to aid the new president to come up with a new international trade strategy. You are told that the new government is interested in moving away from agriculture and into manufacturing. To do so, the government wants to pursuit a policy of import substitution industrialization (ISI). You are given a brief about Ghana highlighting the following points: About half of Ghana’s population depends on agriculture, but Ghana still imports some of its food. The majority of Ghana's people live in rural areas and exist on a subsistence way of life. Ghana has one of the highest rates of income inequality in the world. Nearly half of the population is employed in agriculture. QUESTION B.3 Marcia Anthony, the Trade Minister, argues that the country should not adopt ISI. She asks you to help her explain the benefits of trade with a diagram. Please draw this diagram and explain its intuition. QUESTION B.4…