Answer:
How will the government’s budget deficit be affected by public infrastructure projects?
Explanation:
Macroeconomics is concerned with the general behavior and changes in the economy as a whole. Macroeconomics studies parameters that affect the entire economy, such as inflation, unemployment, national income, gross domestic product (GDP), and general price levels. It contrasts microeconomics, which studies the choices and behavior of individual households and industries.
A government's budget is for the entire economy. A deficit that affects public infrastructure projects will impact the country's economic development programs. Government spending forms part of fiscal policies that influence economic development in a country.
Answer:
These statements are correct:
- It makes it easier to compare prices across Europe - the Euro is the common curriency across 19 countries, but prices in those countries are far from being the same. For example, Germany is a lot more expensive than Greece (although a lot wealthier too), and Greek people can easily find out that the same product in Germany costs more euros than in Greece.
- It makes Europe an optimal currency area - in the Eurozone, economic efficiency is now higher because resources can be allocated across different countries thanks to the fact that prices can be compared in the region.
Answer:
B. Herbania is technologically superior to Duckistan in producing civilian goods.
Explanation:
Duckistan Production Possibilities
A B C D E
Civilian Goods 20 18 14 8 0
Military Goods 0 1 2 3 4
opportunity cost - ¹/₁₈ ¹/₇ ³/₈ 4 civilian goods
opportunity cost 20 18 7 2.7 - military goods
Herbania Production Possibilities
A B C D E
Civilian Goods 40 36 26 14 0
Military Goods 0 1 2 3 4
opportunity cost - ¹/₃₆ ¹/₁₃ ³/₁₄ 4 civilian goods
opportunity cost 40 36 13 4.7 - military goods
Herbania has an absolute advantage in the production of civilian goods. Since it also has a lower opportunity cost of producing civilian goods, therefore, it also has a comparative advantage at producing civilian goods. Assuming that resources are equal in both countries, then we can assume that Herbania is technologically superior in the production of civilian goods.
Dukistan has a lower opportunity cost of producing military goods, therefore, it has a comparative advantage at producing military goods.
The correct answer is C. Let's clarify this. An intern position doesn't amount to a professional rank, since the intern doesn't hold a permanent position. The intern is therefore the last in the scale. The data entry clerk is a professional who handles low responsibility tasks and works under someone else's supervision. The accountant is the hierarchical of the data entry clerk. Then at the top of the pyramid you have the operations research assistant who has more responsibility than the accountant, hence more than everyone else down the scale.
