Question Completion:
Production outputs
Luxland Leanderland
Chips 10 4
Pretzels 10 8
Total output 20 12
Answer:
Assuming that Luxland and Leanderland specialize and trade in a way that is advantageous for both of them, the number of pretzels that Leanderland can produce will be 16.
Explanation:
a) Data and Calculations:
Specialization Output:
Luxland Leanderland
Chips 20 0
Pretzels 0 16
Total output 20 16
b) While it is acknowledged that Luxland has absolute advantage in the production of both chips and pretzels when compared to Leanderland, the total output for both economies, without specialization, remains 32 units (of both chips and pretzels). When they specialize, Leanderland's output increases to 16 units from 12. This results in total output of 36 units instead of 32 for both economies.
Answer:
The correct answer is option c.
Explanation:
If there is an appreciation in the value of the dollar, it implies that the value of the dollar has increased in comparison to foreign currency. This means that foreign consumers will need to pay more for US goods. This will cause a decline in export demand.
Because of the decline in exports, the net exports will fall. This decrease in the net exports will cause the aggregate demand to fall. As a result, the aggregate demand curve will shift to the left.
The items that describes what happens at the equilibrium price are:
Producers supply the exact goods that consumers buy.
Consumers have enough goods, at the given price.
Producers used their resources efficiently.
Equilibrium pricing is when the items demanded match the items supplied. When this happens, the demand and good available equal each other, hence, equilibrium. The pricing is exactly where it should be for consumers to want and purchase the good or service.
is a discount that buyers can receive in exchange
