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Economics

Each of the 5 questions needs at least a one paragraph answer and a citation.

1. Why are many of the large industrialized nations (e.g., U.S., U.K., France, & Japan) running continuingly large federal deficits and what must be done to avoid default?

2. What are the costs and benefits of belonging to a single currency union such as the European Monetary Union (Euro Zone)?

3. The U.S. is running a large trade deficit with China. What are the prospects for this relationship? You may wish to visit the U.S. Bureau of Economic Analysis for the latest report on the balance of trade.

4. U.S. labor unions, among others, often accuse China of currency manipulation. What is the basis and motivation for this claim?

5. Why do most analysts believe China will become the world's largest economy? What are the implications for world leadership?

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Microeconomics, Economics

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