cus(wj 8f hiring additional workers exceeds the benefits (M of hiring them, so t

Question

cus(wj 8f hiring additional workers exceeds the benefits (M of hiring them, so they should hire fewer workers. Save Question 14 (1 point) Dutch disease may be evident in Canada because Canada is a resource-based economy and does not have a strong manufacturing industry inflation increases when oil prices rise. the Canadian dollar appreciates with higher oil prices. Canada is a major oil-exporting country. Save se Question 15 (1 point) The A company collects bushels of wild berries, which it sells for $2 million to the B to be made into jam. The B company's wild berry jam is sold for a total of company $6 million. What is the total contribution to the country's GDP from and B? companies A Saved

Explanation / Answer

Question 14

Dutch disease implies a scenario in which large inflow of foriegn capital in a country leads to appreciation of country's currency and makes its exports uncompetitive in global markets leading to fall in exports, reduced production, and rising unemployment.

So, the sector receiving the large inflow of foriegn capital could be growing but other sectors were going down.

Similar situation was witnessed in Canada where large inflow of foriegn capital in oil sector as high oil prices has made the extraction of oil from oil sands in Canada a viable option.

This has resulted in the appreciation of Canadian dollar and make the exports of Canada less competitive creating problem in manufacturing sector.

So,

Dutch disease may be evident in Canada because the Canadian dollar appreciates with higher oil prices.

Hence, the correct answer is the option (3).

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