Author Question: Which of the following correctly shows the relationship between savings, the government budget ... (Read 63 times)

jhjkgdfhk

  • Hero Member
  • *****
  • Posts: 569
Which of the following correctly shows the relationship between savings, the government budget balance, and the current account?
 
  A) S + CA = I + (T - G)
  B) S + CA = I + (T + G)
  C) S + (T - G) = I + CA
  D) S + (T + G) = I + CA

Question 2

Free trade may be good for a nation, but not for everyone in the nation. Explain why free trade is controversial and the list the justifications that proponents of trade adjustment assistance offer in support of those policies.
 
  What will be an ideal response?


sarahccccc

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

C

Answer to Question 2

The nation as a whole is better off as long as the gains from the winners exceed the losses from the losers. Restructuring means that some industries are dying and workers and producers have to find other opportunities. This may be difficult for not only those directly involved in the industry, but also for the surrounding communities. Adjustment assistance states that since the nation as a whole benefits from trade, there are newly added resources that can be used for compensation. Second, there is a potential ethical obligation to assist those hurt by economic change. Third, compensation reduces the incentives for those hurt by trade to fight against free trade policies.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

For a complete list of videos, visit our video library