Please read the case below and answer the questions:
Expert Electronics is a manufacturer...
Please read the case below and answer the questions:
Expert Electronics is a manufacturer of computers on a large, but isolated, City in Jordan. Although imports are extremely limited, there are a few computer manufacturers in addition to Expert Electronics. While the government provides some services, such as public education and a well-maintained road system, almost all businesses are privately owned.
Q1) If Jordan is operating under a capitalistic, market-based economy, what four elements must be present in the economic system to make it work?
Q2) A Palestinian company has built a production facility in the same city. Will the value of the goods produced by the Palestinian company be included in Jordan's GNP? Explain.
Q3) What type of economic system exists in this city in Jordan? Support your conclusions.
Q4) ) If Expert Electronics cuts the prices for its computer system, how will competitors respond?
Answers: 2
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