For the following questions, assume the following for our one person “Robinson Crusoe” economy? Output: 5...
For the following questions, assume the following for our one person “Robinson Crusoe” economy?
Output: 5 fish
Income: 5 fish
Consumption: 3 fish
- What is the national savings?
2 fish
- Is the nation (i.e., Robinson) running a trade deficit or surplus?
- What do these numbers tell you about the cause of a trade surplus?
Homework Answers
A. National savings = Income - consumption = 5-3 = 2 fishes.
B. It has trade surplus because it consumes less than it produces.
C. The cause of trade surplus is that the consumption is lower than output.
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For the following questions, assume the following for our one
person “Robinson Crusoe” economy?
Output: 5...
5 LUN , my cool and Trade Robinson Crusoe can catch 1 fish in one hour...
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LUN , my cool and Trade Robinson Crusoe can catch 1 fish in one hour or harvest i no 1. What are RC's production functions for fish and for t equations or both) he ricorn F -a Llwel Ly- Qusa 2., Derive or characterize RC's production possibilities curve. (What does it looke? What -OL - % assumption do you need to make?) Q- to a draught line since there is constant opportunity cot so produce more of any item...
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