Need these 7 questions answered, they are worth 10 marks each so please make them appropriate. Thank you! 1) Explain with illustration or diagram, the effect of short term movement in the business c

Need these 7 questions answered, they are worth 10 marks each so please make them appropriate. Thank you!

1) Explain with illustration or diagram, the effect of short term movement in the business cycle on the trade balance?

Describe the pattern of US economy with respect to its current account balance from the 1950S to the present.

2) We have noticed a trend towards globalization in recent decades, which means that buying and selling in markets have crossed national borders to an increasing extent. As a result firms and workers from different countries are increasingly interconnected. Globalization has occurred for a number of reasons. State 3 reasons and briefly describe their effect contributing towards globalization.

3) How would you define productive efficiency and allocative efficiency. explain the law of diminishing returns and illustrate with a relevant example.

4) Explain the “adverse selection of wage cuts argument” and what its practical consequences are for business owners.

5) Explain why the markets tend towards equilibrium and, as a result, will tend to eliminate shortage and surplus. Use diagram.

6) What is the most common cited measure of inflation in the united states and Canada and explain how it is calculated. Briefly describe the problems that always arise from measuring price level with a fixed basket of goods and what steps can be taken to counter these problems.

7) explain what an aggregate demand curve shows and what it is comprised of. Describe the shape of the demand curve and briefly explain the reason behind the shape.

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