G cmu.populiweb.com C rhelp.co... Org Behaviour OB Final Exam - 2024.docx P Good communication, which s. ECON-1000: Files ril 8, 2024.pdf Apr 3, 2024 12:48am . PDF Document . Size: 165 KB 1 (1.75 marks) What is the difference between the government's debt and the government's deficit? A) The debt is the annual shortfall of revenues minus disbursements whereas the deficit is the accumulation of past debts. B) The debt is the amount the government pays in interest payments whereas the deficit has not yet incurred interest charges. C) The debt is the amount payable to the Bank of Canada whereas the deficit is the annual shortfall of revenue minus disbursements. D) The debt is the accumulation of past deficits whereas the deficit is the annual shortfall between revenues and disbursements. E) The debt is the difference between tax revenues and government expenditures whereas the deficit is the difference between tax revenues and borrowing. 2 (1.75 marks) In any given year, the government's debt-service payments are A) equal to the annual budget deficit. B) equal to the annual primary budget deficit. C) the interest payments on the outstanding stock of government debt. D) not related to the government deficit. E) not required unless the debt is held by foreigners. 3 (1.75 marks) What is typically the main objective of protectionist trade policies? A) to create a level playing field B) to raise average real wages in the economy C) to raise government revenues through tariffs D) to maximize world production E) to shield local producers from foreign competition 4 ( 1.75 marks) What is a "debit entry" in Canada's balance-of-payments accounts? A) any transaction that involves a payment to other nations B) any transaction that involves a receipt from other nationsG A cmu.populiweb.com rhelp.co.. Org Behaviour OB Final Exam - 2024.docx P Good communication, which s. ECON-1000: Files ril 8, 2024.pdf Apr 3, 2024 12:48am . PDF Document . Size: 165 KB ostera Total produ Teign TOTT 4 ( 1.75 marks) What is a "debit entry" in Canada's balance-of-payments accounts? A) any transaction that involves a payment to other nations B) any transaction that involves a receipt from other nations C) any foreign-exchange transactions by a domestic resident D) any foreign-exchange transactions by a foreign resident E) any transaction by the central bank in the official financing accounts 5 (4 marks) Fill in the blanks to make the following statement correct. a. A product such as coffee beans is cheaply transported and is traded around the world. The law of tells us that it will tend to have worldwide price. (1 mark) b. If the no-trade domestic price of copper wire in Canada is $20 per unit and the world price is $24 per unit, then Canada will have an excess , which it will then _. The opportunity cost of producing copper wire in Canada is than the opportunity cost of producing it in the rest of the world. (1.5 marks) C. Canada will import goods for which it has an excess at the world price. In the absence of trade, the price of these goods would be less than the _price. (1.5 marks) 6 (5 marks)G cmu.populiweb.com C P Good communication, which s.. ECON-1000: Files CO... Org Behaviour OB Final Exam - 2024.docx 2024.pdf , 2024 12:48am . PDF Document . Size: 165 KB 6 (5 marks) The following table shows the production of wheat and corn in Brazil and Mexico. Assume that both countries have one million acres of arable land and the same amount of other resources. Brazil Mexico Wheat 90 bushels per acre 50 bushels per acre Corn 30 bushels per acre 25 bushels per acre a. Which country has the absolute advantage in wheat? In corn? Explain. (1 mark) b. What is the opportunity cost of producing an extra bushel of wheat in Brazil? In Mexico? Which country has the comparative advantage in wheat production? Explain. (2 marks) c. Which country has the comparative advantage in corn production? Explain. (1 mark) d. Explain why one country can have an absolute advantage in both goods but cannot have a comparative advantage in both goods. (1 mark) 7 (5 marks) The diagram below shows the supply and demand curves for the Canadian domestic market for hockey sticks. Assume all hockey sticks are identical. Price ($ per hockey stick) 124 60 Quantity of hockey sticks (millions per year) 20 Q DII DDD G A cmu.populiweb.com C Ip.co... Org Behaviour OB Final Exam - 2024.docx Good communication, which s... SECON-1000: Files 8, 2024.pdf 3, 2024 12:48am . PDF Document . Size: 165 KB product? How many per year? (2 marks) C. If Canada is an open market and the world price of hockey sticks is $60, describe the Canadian market. What is domestic production and consumption? Is Canada exporting or importing this product? How many per year? (2 marks) 8 (4 marks) Consider the balance-of-payments accounting information for Faraway Land as shown in the table below for the year 2018. All values are in billions of dollars. (12 marks) Exports 126 Imports -105 Net foreign-investment income -31 Capital outflow from Canada (purchase of assets from foreigners) -26 Capital inflow to Canada (sales of assets to foreigners) 36 Change in official international reserves 0 What is the trade balance? (0.5 mark) b. What is the current account balance? (0.5 mark) C. What is the change in Faraway Land's net foreign assets? (0.5 mark) d. What is the capital account balance? (0.5 mark) e. What is the balance of payments? (0.5 mark) 80 DD Q U