Economics 2 questions-u7 Assignment Example | Topics and Well Written Essays - 250 words

Economics 2 questions-u7 - Assignment ExampleDepreciation of euros because of the increase in financial metropolis influences the European net exportation. To this end, import becomes expensive and export become cheap (Krugman, and come up 123). This led to increase in export and decline for imports. The resulting net export is favorable, as exports, shall outweigh imports. The European Union will experience surplus in the current account.Labor productivity enkindle be improved by means of education and training to employees. To this end, workers increase their knowhow and effectiveness. This improves the quality of service delivered thereby improving productivity. Technology can improve labor productivity. A well-equipped worker with necessary equipments can deliver services more effectively and efficiently compare to unequipped worker. Technology eases the time and efforts employed by worker in delivering service (Krugman, and Wells 167).The above diagram assumes increasing opp ortunity cost between the two goods. The increase in labor productivity increases the production of the two goods. Therefore, the production adventure curve shifts outward as shown