When China and Japan got into a snit in 2010, China cut off Japan's supply of the Rare Earth minerals. Find a few news articles on this controversy. (a) Take a position on China's action; was it politically or economically wise? (b) What should governments and corporations do when a key resource is controlled by an unreliable government?

Discuss how Joseph Schumpeter characterized capitalist economies by the process of 'creative destruction'. (a) In your own words, explain what this term means. (b) Based on this definition, give examples of destruction and creation, and identify the winners and the losers in the short and long run.

A(n) __________ is excludable and rival. Group of answer choices common resource public good artificially scarce good private good

Suppose a big country with a good's demand described by P = 60 - 3Q and a good's supply described by P = 8 + Q implements a $9 export subsidy, which ultimately decreases the world price from $27 to $24. (a) Calculate the total surplus under each scenario: no trade, free trade, and protected trade. (b) Calculate the distortion loss of the export subsidy. (c) Suppose the increase in exports resulted in an increase in the current account, while primary budget deficit and private saving remained the same. What happened to the economy's investment?