Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 14QP
To determine
Explain the direct increases in the US price relative to foreign goods.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Will a direct increase in the price of U.S. goods relative to foreign goods lead to a change in the quantity demanded of Real GDP or to a change in Aggregate Demand? Will a change in the exchange rate that subsequently increases the price of U.S. goods relative to foreign goods lead to a change in the quantity demanded of Real GDP or to a change in Aggregate Demand?
Imagine you are an economic advisor to the USA government during a severe recession. What specific measures would you propose in terms of government spending, taxes, and transfer payments? Then explain the benefits and purpose of this policy. How do they aim to stimulate economic growth, and reduce unemployment? Are there any potential risks or trade-offs associated with these policy choices?
If the United States has been selling more goods in the international market than it has been buying, this could be for all the following reasons except:
foreign goods are often much cheaper
The value of the U.S. dollar has fallen substantially
The quality of foreign products is similar to that of U.S. products
The values of foreign currencies are rising relative to that of the U.S. dollar
Elroy Hatchard is the sole proprietor of a gift shop in a small shopping center. Because he is a sole proprietor, Elroy’s profit from the business is:
Totally tax-free
Taxed as personal income
Not subject to state or local taxes
Taxed only when it is distributed to investor
All of the following are normally considered advantages of the corporate form of business organization except:
Unlimited liability
Perpetual life
Ease of ownership change
More money for investment
The heavy influence of such federal agencies as the Federal Trade Commission, the Securities and…
Chapter 8 Solutions
Economics (MindTap Course List)
Ch. 8.2 - Prob. 1STCh. 8.2 - Prob. 2STCh. 8.2 - The money supply has risen, but total spending has...Ch. 8.3 - Prob. 1STCh. 8.3 - Prob. 2STCh. 8.3 - Prob. 3STCh. 8.5 - Prob. 1STCh. 8.5 - Prob. 2STCh. 8 - Prob. 1QPCh. 8 - Prob. 2QP
Ch. 8 - Prob. 3QPCh. 8 - Prob. 4QPCh. 8 - Prob. 5QPCh. 8 - Prob. 6QPCh. 8 - Prob. 7QPCh. 8 - Prob. 8QPCh. 8 - Prob. 9QPCh. 8 - Prob. 10QPCh. 8 - Prob. 11QPCh. 8 - Prob. 12QPCh. 8 - Prob. 13QPCh. 8 - Prob. 14QPCh. 8 - Prob. 15QPCh. 8 - Prob. 16QPCh. 8 - Prob. 17QPCh. 8 - Prob. 18QPCh. 8 - Prob. 19QPCh. 8 - Prob. 20QPCh. 8 - Prob. 21QPCh. 8 - Prob. 1WNGCh. 8 - Prob. 2WNGCh. 8 - Prob. 3WNGCh. 8 - Prob. 4WNGCh. 8 - Prob. 5WNGCh. 8 - Prob. 6WNG
Knowledge Booster
Similar questions
- Answer the given question with a proper explanation and step-by-step solution. Suppose that εD = 0.70 and ε_D^F = 0.50 for a given country: Suppose that the foreign currency price of this country’s exports falls by 18% following a devaluation. What will happen to the quantity of exports?arrow_forwardWeek 6: Question Number 6.2. You are an IMF official going to a country whose export earnings are not able to pay for imports. The government has requested a loan from the IMF. Which areas would you recommend the government to cut: (1) education, (2) salaries for officials, (3) food subsidies, and/or (4) tax rebates for exporters?arrow_forwardWhy does the decline in value of a certain currency cause imports to be expensive and exports cheaper, resulting in cost-push and demand-pull inflation?arrow_forward
- Why do larger countries typically have smaller export markets (as a percentage of total production) than smaller countries?arrow_forwardA semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market. Due to loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S. government reduce the export (or limit the supply of domestic producers) by imposing an export quota of 20 billion units per year. What happens to U.S. price of semiconductors, the quantity of semiconductors bought by U.S. people, and the quantity of semiconductors exported? [hint: use equation to calculate the equilibrium]arrow_forwardAn expected decline in demand for consumer goods in the U.S. means there will be less imports into the U.S. Less imports in the U.S. translates to a reduction in exports from China, which is significant as the U.S. has the largest GDP of all nations. As the U.S. is reducing imports, it will be purchasing less goods from China, which means the U.S. will be giving up less dollars to purchase Chinese goods with the yuan. Will a decline in demand for consumer goods in the U.S. impact China's economy given the above information? If so, how would that affect the dollar-yuan exchange rate?arrow_forward
- If the U.S. Dollar appreciates, foreigners will find American goods more expensive because they have to spend less for those goods in USD, meaning with higher prices, the number of U.S. goods being exported will likely drop and leads to a reduction in the Gross Domestic Product (GDP). True or Falsearrow_forwardGenerally, how does the standard of living in the United States today compare to the standard of living in other countries? To the standard of living in the United States a century ago?The Bureau of Economic Analysis, or BEA, is a government agency collecting various U.S. economy statistics. From the BEA’s website, find data for the most recent year available on U.S. exports and imports of goods and services. Is the United States running a trade surplus or deficit? Calculate the ratio of the surplus or deficit to U.S. exports.There are many people out there providing opinions on the economy. How can differences of opinion about economic policy recommendations be resolved?arrow_forwardWhy are aircraft one of the United States' greatest exports? The demand for aircraft is high. The US has a great deal of technological knowledge. The American dollar is cheap compared to other currencies.arrow_forward
- How does the fluctuating value of the Euro affect the price of German cars sold in the United States?arrow_forwardBoth the United States and global economies are booming. Will U.S. imports and/or exports increase?arrow_forwardWhether or not one likes a strong U.S. dollar depends on their perspective. For those who are looking to travel abroad, a strong dollar means they can get more for their money. On the other hand, for those who are looking to export goods, a strong dollar can make their products more expensive for foreign buyers. A strong dollar can have a significant impact on U.S. firms. It can make their products more expensive for foreign buyers, which can lead to a decrease in demand and a decrease in profits. Additionally, a strong dollar can make it more difficult for U.S. firms to compete with foreign firms, as their products may be more expensive. Finally, a strong dollar can also make it more difficult for U.S. firms to borrow money from foreign lenders, as the cost of borrowing may be higher. reply to discussionarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning