Author Question: Refer to Scenario 2 . What would be the impact of improvements in technology assuming that each ... (Read 54 times)

tsand2 · **on:** Jun 29, 2018

Refer to Scenario 2 . What would be the impact of improvements in technology assuming that each country spends one-half of its resources on capital goods?

What will be an ideal response?

Question 2

Who decides whether a movie is going to be a blockbuster? How do you think the creation of a blockbuster movie influences what, how, and for whom goods and services are produced?

What will be an ideal response?

Briannahope · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

There should be a greater improvement in wealth for the wealthier country if each country continues to spend the same percentages.

Answer to Question 2

The audience decides whether a movie will be a blockbuster be-cause the audience decides whether to attend the movie.
The what question is affected in three ways: First, one good or service that is produced is the blockbuster movie. Second, the people whose in-comes are higher as a result of the blockbuster then buy an assortment of goods and services and so this assortment of goods and services is pro-duced. Finally, the what question is influenced if the movie leads to spinoff goods (such as toys) or creates a series of sequels or similar films. The how question is affected to the extent that movies use different production methods. Some movies, for instance, have a lot of special effects while other movies have few or none. The for whom question is influ-enced because those people who receive the profits of a blockbuster movie have higher incomes and so more goods and services are produced for them.