Discuss the major determinants of net exports.
What will be an ideal response?
National incomes: Although both exports and imports depend on many factors, the predominant one is income levels in different countries. When our economy grows faster than the economies of our trading partners, our net exports tend to shrink. Conversely, when foreign economies grow faster than ours, our net exports tend to rise.Relative prices and exchange rates: A rise in the prices of a country’s goods will lead to a reduction in that country’s net exports. Analogously, a decline in the prices of a country’s goods will raise that country’s net exports. Similarly, price increases abroad raise the home country’s net exports, whereas price decreases abroad have the opposite effect.
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Describe the three types of unemployment?
What will be an ideal response?
In the short run when output is zero, total cost is:
a. equal to total variable cost. b. greater than total fixed cost. c. equal to total fixed cost. d. less than total fixed cost. e. less than total variable cost.
Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. When these two individuals engage in trade, it would be advantageous for both if:
a. Bob specializes in the production of toys and Bill specializes in car repairing. b. Bob specializes in car repairing and Bill specializes in the production of toys. c. they specialize only in car repairing. d. they specialize only in the production of toys. e. they distribute their working hours evenly between the production of two goods.
In 1964, the poverty line for a family stood at about which of the following figures?
a. $2,100 b. $3,000 c. $4,500 d. $7,500