Now, it is time for you to test your knowledge of key economic indicators and the effects of economic measurements have on an economy.

The purpose of this assignment is to investigate and to gauge your understanding of key economic indicators by filling out the figure one (1) below and to write up your findings and compare and contrast the United States to that of China.

Compare and Contrast the United States to that of China

Assignment should include the following:

Title page

Introductory paragraph

Completed table inserted into your Word document

Summary of the United States and China

Summary must be at least 250-words or more in length

Conclusion to summarize your findings, and

Reference page (Reference page must be at the end of your paper and on a separate page).

ECO 2013 Principles of Macroeconomics Global Citizens Assignment

In this assignment, you will examine GDP for different countries and the factors that lead to different rates of economic growth among countries and you will be asked for your economic advice. ANSWER EACH NUMBERED QUESTION SEPARATELY.

1. GDP: Calculate the values to fill in the blanks in the shaded areas of the table below:

2. Based on the information in the table and your calculations for Question #1:

Do any countries have positive net exports? ______      Which one(s)? ________________________

Which country has the largest negative net exports? ____________________________

3. Suppose that one of the countries above asks for your advice about trade. Policymakers in the country want information about the impact of trade on GDP and whether they should be concerned about negative (or positive) net exports. How would you respond?

4. Economic growth: Based on information from the World Bank, in 2016, GDP per capita was $57,467 in the United States and $59,977 in Iceland – very similar values (and high values compared to many countries). But, the annual rate of GDP growth averages 0.9% in the United States and 6.1% in Iceland.

Would you predict the United States or Iceland to have a more rapid increase in the standard of living in the long run?

                _________________    Discuss what evidence/theory from Chapter 11 you are using to support this prediction.

5. Based on information from a variety of sources, out of all countries –

Saudi Arabia ranks 26^th in healthcare while the United States ranks 31^st

Saudi Arabia ranks 95^th in the lack of civil unrest while the United States ranks 97^th

Saudi Arabia ranks behind the United States in terms of education

Saudi Arabia has investment of 30.75% of GDP while the United States is 19.754%

All of this suggests that the standards of living in the United States and Saudi Arabia are very similar - using this, answer the question below.

?6. Suppose a country with a low standard of living asks for your advice on whether it should try to emulate Saudi Arabia or the United States in pursuing its goal of increasing its standard of living. What would you advise?

Consider this statement: “The principles of specialization and trade according to comparative advantage among nations also apply to states in the United States”. Do you agree or disagree? Explain.

Question 4: Open Economy Macroeconomics
a. Each of the following transactions will affect the balance of payments for the United
States. Indicate which account (current account or financial account) would be affected
by each of these transactions and whether it is a credit (+) or debit (-) transaction.
i. Samsung sells $500,000 of its cellular phones to a U.S. phone service provider.
ii. Mr. Williams in the United States sends his nephew in Australia $200 as a
graduation gift.
iii. A bank in Chicago purchases a Swiss Treasury bond.
iv. Hyundai Motor, a Korean company, builds a new production plant in Alabama.
b. The United States runs a current account deficit. Is the U.S. financial account in deficit
or surplus? Explain the relationship between the two accounts.

The National Sleep Foundation surveyed representative samples of adults in six different countries to ask questions about sleeping habits.† Each person in a representative sample of 250 adults in each of these countries was asked how much sleep they get on a typical work night. For the United States, the sample mean was 391 minutes, and for Mexico the sample mean was 426 minutes. Suppose that the sample standard deviations were 26 minutes for the U.S. sample and 41 minutes for the Mexico sample. The report concludes that on average, adults in the United States get less sleep on work nights than adults in Mexico. Is this a reasonable conclusion? Support your answer with an appropriate hypothesis test. (Use α = 0.05. Use μ₁ for Mexico and μ₂ for the United States.)

Discuss the Following in a Single Initial Reply:

1) Organizations do not operate in a vacuum and are subject to governmental regulation. This is particularly true with publicly traded organizations. Based on business here in the United States - who can name a few regulatory bodies that directly relate to financial management?

2) What exactly is risk aversion and can it relate to cultural differences? Even if you have never been overseas - can you give an example of this here in the United States?

3) I believe that we all know what currency is - think about having a United States dollar in hand. From a financial management standpoint, why is it important to understand currency fluctuations? What are some of the key factors that cause fluctuation?

On October 10, 2019, the exchange rate for the US Dollar vs. the Swedish Krona was $1 = SEK 9.95. Over the following year, the US Dollar weakened vs. the Swedish Krona and the exchange rate was $1 = SEK 8.78 on October 10, 2020. Imagine you are an executive at a Swedish company that manufactures all of its products in Sweden. You are thinking of expanding to the United States. These two questions affect of the weakening of the US Dollar vs. the Swedish Krona on the company's expansion.

a) Would your company be more likely or less likely to build your own distribution center in the United States?

b) How would the exchange rate affect the prices of your products sold in the United States? (Remember they are manufactured in Sweden.)

Consider trade relations between the United States and Mexico. Assume that the leaders of the two countries believe the payoffs to alternative trade policies are shown in the following payoff matrix:

The dominant strategy for the United States is always to choose   tariffs. The dominant strategy for Mexico is always to choose   tariffs.

True or False: The Nash equilibrium outcome for trade policy is for the United States to have low tariffs and Mexico to have high tariffs.

True

False

In 1993, the U.S. Congress ratified the North American Free Trade Agreement, in which the United States and Mexico agreed to reduce trade barriers simultaneously.

True or False: Given the trade strategy decisions in the table, the United States is better off and Mexico is worse off with this new trade policy.

True

False

Based on your understanding of the gains from trade (discussed in Chapters 3 and 9), which of the following statements accurately characterize how well the payoffs indicated for the four possible outcomes actually reflect a nation's welfare? Check all that apply.

The payoffs in the upper left and lower right corners of the matrix reflect a nation's welfare because they show that trade is beneficial and tariffs are a barrier to trade.

The payoffs in the upper right and lower left corners of the matrix do not reflect a nation's welfare because tariffs hurt overall total surplus, so both countries' welfare should decline regardless of who charges the high and low tariffs.

The payoffs in the upper right and lower left corners of the matrix reflect a nation's welfare because the nation with lower tariffs is better off, since that nation is more open to trade.

A movie theater faces the following demand curves: Seniors: Ps = 27-Q Adults: Pa = 33 - Q The theater has a fixed cost of 50, and a constant marginal cost of 1 per ticket. a) If the movie theater uses segmenting, calculate the ticket prices charged to adults and seniors. b) How much profit does the movie theater earn from segmenting? c) Illustrate the profit maximizing choices on both inverse demand functions along with CS and profit. d) Suppose the theater is legally prevented from using price discrimination. Calculate and illustrate the aggregate inverse demand. What price will they charge per ticket? How much profit will they earn? e) Find the total consumer surplus without price discrimination and illustrate it on the aggregate inverse demand. Under which scenario are the consumers better off?