Read the following passage to answer the question: Various countries, including South Africa, China and India, have established Special Economic Zones (SEZs) within their domestic economies. Firms that operate within these SEZS receive several incentives including tax relief, rent- free land, capital investment and training. This is done with the expectation to increase exports and to create job opportunities for local communities. Based on the passage, which one of the following statements regarding supply factors and demand factors that affect economic growth, is true? Select one: a. Tax relief, capital investment and training are not supply factors, nor demand factors.

Read the following passage to answer the question: Various countries, including South Africa, China and India, have established Special Economic Zones (SEZs) within their domestic economies. Firms that operate within these SEZS receive several incentives including tax relief, rent- free land, capital investment and training. This is done with the expectation to increase exports and to create job opportunities for local communities. Based on the passage, which one of the following statements regarding supply factors and demand factors that affect economic growth, is true? Select one: a. Tax relief, capital investment and training are not supply factors, nor demand factors.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consider two sectors in an economy. One sector produces exports and the other is the import-competing sector. Both these sectors use capital and labor for production. Assume that the import competing sector is relatively labor intensive. Show graphically as well as mathematically the effect of an increase in the price of the import-competing good on equilibrium factor prices.
China’s entry into the World Trade Organization (WTO) in 2001 created more competition between local and foreign firms, and also provided China greater access to the market for exports. This was particularly true in the market for rubber since, at the time, China was the world’s second largest consumer of rubber (China is now the world’s largest consumer of rubber). Shortly after joining the WTO, China eliminated its import quota on rubber. What impact do you think the import quota reduction likely had on the price of rubber and the quantity of rubber exchanged in China? What implications do you think the elimination of the quota on rubber had on China’s social welfare?
The following graph shows the market for TV sets in Venezuela. The grey line illustrates the world supply curve of TV sets. Suppose that Venezuela imposes a quota that limits imports to 300 TV sets. Use the green points (triangle symbol) to plot the quota-adjusted supply curve on the following graph. (Hint: Make sure you use three points to plot the curve, which is parallel to the original supply curve, with the last point indicating the upper limit allowed by the graph.) Then, use the black point (cross symbol) to indicate the new equilibrium point. PRICE (Dollars per TV set) 600 550 500 450 400 350 300 250 200 150 100 50 0 As a result of the quota, price rises by $ Demand Supply SWorld 0 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Number of TV sets) " ► Swith quota + Ewith quota and consumer surplus falls by $ (?)
Using an analysis of supply, demand, and equilibrium price, explain why price differences for certain goods exist between different countries in Europe.
Assume two famous kurta brands; A1Suits selling kurtas made with natural pure cotton while K2Kaprey with polyester. An article is published giving advantages and recommendation of wearing pure cotton clothing material during a heat wave. What will be the short-run and the long-run impact of the research article? In support of your answer apply the comparative statics analysis, using clearly labelled two panel diagrams of demand and supply model, along-with brief explanations for: a. Short-run market changes due to ‘Rationing function of Price’. b. Long-run market analysis of ‘Guiding or Allocating function of Price’.
Q.1. Suppose that the demand for steel in Japan is given by the equation Q's = 1200 - 4Ps + PA+ PT, where QS is the quantity of steel purchased (millions of tons per year), PS is the price of steel (yen per ton), PA is the price of aluminum (yen per ton), and PT is the price of titanium (yen per ton). The supply curve for steel is given by Q$s = 4Ps. Similarly, the demand and supply curves for aluminum and for titanium are given by Q'A = 1200 – 4PA + Ps + PT (demand curve for aluminum), Q°A = 4PA (supply curve for aluminum), Qʻr= 1200 – 4PT + Ps+ PA (demand curve for titanium), and QST = 4PT (supply curve for aluminum). a) Find the equilibrium prices of steel, aluminum, and titanium in Japan. b) Suppose that a strike in the Japanese steel industry shifts the supply curve for steel to Q°s = Ps. What does this do to the prices of steel, aluminum, and titanium? c) Suppose that growth in the Japanese beer industry, a big buyer of aluminum cans, fuels an increase in the demand for aluminum…
In the labor market, workers would like to receive higher wages and firms would like to pay lower wages. Suppose that workers succeed in having a minimum wage established above the equilibrium wage. What will happen to the number of workers employed when compared to the original equilibrium? Explain Suppose that firms succeed in having a maximum wage establish below the equilibrium wage. What will happen to the number of workers employed compared to the original equilibrium? Explain. What wage maximizes the number of workers employed?Why? How can a price ceiling make consumers better off? Under what conditions might it make them worse off? Monopolistic competition combines the strengthen of both perfect competition and monopoly;it is the most ideal market structures of all three? Do you agree? Explain how diminishing returns and economies of scale affect production costs.Large scale organizational are definitely more efficient than small firms and hence there should be…
On May 13, 2022, the Government of India announced a ban on wheat export, citing s food security and soaring (food) prices. i) Explain how a ban on wheat export may help to stabilize food price in India. ii) Russia, Europe, the United States and Canada are traditionally the top global wheat exporters. However, each has faced significant wheat crop setbacks in recent seasons, mainly due to mainly due to droughts in North America and Europe. Given what have happened in the traditional world wheat exporters and the recent export ban from India. What happens to the world market for wheat? iii) Continued from the previous parts, discuss the impacts on the Canada’s terms of trade and the (domestic) market for wheat.
Below is my question, also any tips on making it an excel graph? The major BP oil spill in the Gulf of Mexico substantially reduced the harvest of shrimp and other seafood in the Gulf, but had limited impact on the prices that U.S. consumers paid in 2010 (Emmeline Zhao, “Impact on Seafood Prices Is Limited,", Wall Street Journal, June 20, 2010). The reason was that the United States imports about 83% of its seafood and only 2% of domestic supplies come from the Gulf. Use a supply-and-demand diagram to illustrate what happened.
Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign’s unit labor requirement in apple production is 120, while in banana production is 150. Graph the relative demand curve along with the relative supply curve of banana. (Q_A^D)/(Q_B^D )=1/2*p_b/p_a ↔1/( (Q_B^D)/(Q_A^D ))=1/2*p_b/p_a Assume: Demand for apples/ demand for bananas =half of price of bananas/ price of apples What is the equilibrium relative price of banana?
The market for pencils has a domestic demand equation P=20−0.5Q�=20−0.5�, and a domestic supply equation P=5+Q�=5+�, where quantity is measured in thousands. The world supply equation for pencils is PW=10��=10. The domestic government decides to implement a tariff of $10 per thousand pencils. As a result of the tariff, the new domestic price of pencils is
In 2002, a meeting is hold in a state-owned farm with one million mu of arable land—B farm after the harvest: Production department section Li said: This year we planted 0.6 million Mu (a unit of area, 1 Mu=0.0667 hectares) wheat, and got 280 kilograms’ wheat per Mu. But after this year's harvest, a new difficulty arises that price of wheat is decreasing now. Usually, the farm will keep 10 million kilograms as seeds and 18 million kilograms for living, and sell the rest to the market. If the firm doesn't sell and keeps the wheat in a long term, the weight of the wheat will decline for the moisture loss from 14% to 13%, which means the farm will loss 1.4 million kilograms. The manager of the supply and marketing, Mr. Liu said: Last year, the price of wheat is 0.96 yuan per kilogram, but now is only 0.80 yuan per kilogram. This causes a big loss to our farm this year. Therefore, we can't sell now! The manager of grain, Mr. Lin said: We have to sell. We predict that the low wheat price…