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Economics

Micro Economics

1. The United States is a net exporter of services to China. What does this imply about the magnitude of the deficit in the U.S. balance on goods and services with china compared with the size of the U.S. merchandise trade deficit with China?

2. Why does a portion of Chinese residents’ expenditures on goods and services exported from the United States to China probable add to the earnings of Chinese firms and those firms’ managers?

3. There is currently a surplus of allowances at the price of zero. What must be true of the relative positions of the market demand and supply curves? Describe.

4. If the EPA were to allow firms to use allowances to emit sulphur dioxide as they did in the past, what would happen to the equilibrium allowance price? Why?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91225071

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