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A country that persistently runs a current account surplus is living below its means while if it runs a persistent deficit it is living beyond its means Discuss?
A current account surplus signifies that the country is exporting more than importing or it is supplying more to the world than it takes from other countries. The current account surplus country is NOT consuming all its production, hence living below its means. On the other hand, a country running a persistent deficit in its current account is a net importer and paying more than it is producing, hence living beyond its means. Arun Goel
What is a surplus disbursement?
A surplus disbursement refers to the distribution of excess funds or profits beyond what is necessary for operational expenses, obligations, or reserves. This can occur in various contexts, such as government budgets, corporate finance, or investment funds, where the surplus is allocated to stakeholders, reinvested, or used for specific projects. The process ensures that the surplus is utilized effectively to benefit the organization or its beneficiaries.
Could international trade allow a country to consume beyond its current production possibilities curve?
Yes, international trade can enable a country to consume beyond its current production possibilities curve (PPC). By specializing in the production of goods and services where it has a comparative advantage, a country can trade for other goods that it produces less efficiently. This exchange allows countries to enjoy a greater variety and quantity of goods than they could produce on their own, effectively shifting consumption beyond the limits set by their PPC. Thus, trade expands economic opportunities and improves overall welfare.
What is surplus amount?
Surplus amount refers to the excess of resources, income, or goods beyond what is necessary or required. In finance, it often denotes the difference between revenues and expenses when revenues exceed expenses, indicating a positive financial position. In economic terms, it can also refer to the additional quantity of a product that exceeds the demand at a given price. Essentially, a surplus signifies abundance in a particular context.
What is the connection between surplus and specialization?
Surplus and specialization are interconnected concepts in economics. When a society or economy produces a surplus of goods beyond its basic needs, it allows individuals or groups to specialize in specific tasks or trades, rather than all producing the same goods for survival. This specialization leads to increased efficiency and productivity, as workers can hone their skills in particular areas, ultimately fostering innovation and economic growth. Thus, a surplus enables and encourages specialization, creating a more dynamic and interconnected economic environment.
A country that persistently runs a current account surplus is living below its means while if it runs a persistent deficit it is living beyond its means Discuss?
A current account surplus signifies that the country is exporting more than importing or it is supplying more to the world than it takes from other countries. The current account surplus country is NOT consuming all its production, hence living below its means. On the other hand, a country running a persistent deficit in its current account is a net importer and paying more than it is producing, hence living beyond its means. Arun Goel
Why is trade an important part of a country's economy?
It brings in products that are not made or grown there normally, and sells surplus goods that are beyond what can be used to other countries.
What was one of the basic features of early civilization?
The production of a surplus of food to allow the ability to go beyond getting subsistenceuse the surplus to support cultural activity.
What are the release dates for Beyond Belief Fact or Fiction - 1997 War Surplus 3-29?
Beyond Belief Fact or Fiction - 1997 War Surplus 3-29 was released on: USA: 28 July 2000
What was key featured of early civilizations?
The production of a surplus of food to allow the ability to go beyond getting subsistenceuse the surplus to support cultural activity.
How might a surplus of food have helped civilizations advance from hunter - gatherer societies?
A surplus of food came from farming, and this surplus provided the means to go beyond a struggle for survival to being able to divert resources to cultural activities and so begin the process of civilisation.
How might a surplus of food have helped civilizations advance from hunter-gathered societies?
A surplus of food came from farming, and this surplus provided the means to go beyond a struggle for survival to being able to divert resources to cultural activities and so begin the process of civilisation.
Why does a country running a current account surplus live beyond its means while one that runs a current account deficit live beyond its means?
Perhaps you have made an unintentional substitution in your question? Did you mean to ask why a country with a surplus lives within its means, and a deficit live beyond its means? A country that relies on a current account trade surplus experiences risk as well, but in a different direction as that of a country with a current account trade deficit. Imagine a simplified condition, perhaps two island economies that trade only with one another. One island is rich in natural resources. Their primary trade goods are fruit, meat, and bamboo wood for construction. The other island is more sparsely endowed with natural resources. To survive, the people on the island have become expert at crafting tools. Their primary trade goods are flint spear points, bows and arrows, and axes. The island rich in natural resources requires little labor to accumulate more than enough fruit and wild boar meat, and is a willing trade partner to the other island. They trade food for tools to make shelters and weapons to hunt. During periods of drought or after the occasional infestation of bugs, the food island sometimes is unable to cover the cost of the arrows and spear points they need to replenish their hunting equipment. The tool making island offers credit, as it is in their own best interests for the food island to continue to try to hunt, even if they must loan them the tools without immediate payment. As long as the food island recovers, the drought eases, the grazing for wild boar improves again and resilient strains of the fruit trees survive and eventually thrive, all is well. The debt for additional spear points and arrows to hunt the temporarily scarce boar is repaid with interest and equilibrium resumes. But if the drought lasts a long time, or the boars are hunted down to the point where they can no longer sustain a sufficient population to feed both islands, then the food island loses the ability to support the needs of both islands, and starvation eventually thins the population of both islands.
How were the hunter gatherers different from a civilization?
Civilisation requires a surplus to provide time for civilised activity to be carried out - beyond the daily struggle for food for survive. Settled peoples can produce this surplus of food and time.
What is a surplus disbursement?
A surplus disbursement refers to the distribution of excess funds or profits beyond what is necessary for operational expenses, obligations, or reserves. This can occur in various contexts, such as government budgets, corporate finance, or investment funds, where the surplus is allocated to stakeholders, reinvested, or used for specific projects. The process ensures that the surplus is utilized effectively to benefit the organization or its beneficiaries.
What did humans have to learn in order to have civilizations?
To produce enough food to provide a surplus to spend on things beyond mere survival.
Could international trade allow a country to consume beyond its current production possibilities curve?
Yes, international trade can enable a country to consume beyond its current production possibilities curve (PPC). By specializing in the production of goods and services where it has a comparative advantage, a country can trade for other goods that it produces less efficiently. This exchange allows countries to enjoy a greater variety and quantity of goods than they could produce on their own, effectively shifting consumption beyond the limits set by their PPC. Thus, trade expands economic opportunities and improves overall welfare.
