Question

the organization for economic cooperation and development (oecd) tracks different summary statistics of its member countries. two important variables are per capita gdp (gross domestic product) and trade balances (measured as a percentage of gdp). exporting countries tend to have large positive trade balances while importing countries tend to have negative trade balances. use the oecd date file posted on campus web, which has data from the 2005 oecd report, to answer the following questions:On average, what is the per capita GDP for countries with balanced imports and exports (i.e., with trade balance zero)? Give your answer as a range, suitable for presentation.

Answer 1

To determine the average per capita GDP for OECD countries with a zero trade balance, data from the OECD dataset is required. The average would be calculated from the subset of countries with balanced imports and exports.

Step-by-step explanation:

The student's task involves analyzing data from the Organization for Economic Co-operation and Development (OECD) regarding member countries' per capita GDP and trade balances. Finding the average per capita GDP for countries with a trade balance of zero requires accessing the OECD dataset and filtering the data to include only countries with balanced imports and exports.

It is essential to note that trade balance is an economic indicator of the difference between a country's exports and imports and can reflect a country's competitive position in the global market. High trade balances typically indicate a surplus, with exports > imports, while negative trade balances indicate a deficit, with imports > exports. The per capita GDP is a key measure that relates to a country's economic output per person and is a commonly used indicator of the standard of living and economic health in a country.

Consider the hypothetical example: If countries with a zero trade balance range from a per capita GDP of $20,000 to $40,000, one might report this by stating, 'On average, the per capita GDP for OECD countries with balanced imports and exports falls within the range of $20,000 to $40,000.'