Comparative Advantage The theory of Comparative Advantage emphasizes gains that countries can achieve by specializing and participating in mutually beneficial trade with other countries. Please, describe and briefly discuss 2-3 specific reasons that might prevent a country to benefit from the gains of trade!

Q: Economics - Game Theory & Business Strategy  Inverse Market Demand for tires is P = 200 - .01Q  We...

A: The extensive form of the game is, 1.Manufacturer sets Price X by solving: maxQ(100-0.01Q)Q-10Q 2. R...

Q: A mother who does not work receives $18,000 in welfare benefits from the government. Suppose that sh...

A: The poverty trap refers to the situation when it is not possible for the poor population to come out...

Q: Suppose you are the manager of a watchmaking firm operating in a perfectly competitive market. Your ...

A: In perfectly competitive market, price is constant so price is equal to marginal revenue. Firms will...

Q: Assume Canada is a large importer of raw materials from Otherland. Which of the following would like...

A: GDP measures the complete money or price of all finished merchandise and services created within a c...

Q: It is defined to be the capacity of a commodity to satisffy human wants. Discount Luxury Necessity U...

A: Answer: Utility: utility refers to the want satisfying power of a commodity. In other words, every c...

Q: When talking about compensating wage differentials and the market for risky jobs, we assume that the...

A: Compensating wage differentials refer to higher wages that are required to be offered to the labor f...

Q: What limitations or challenges of The Big-Push Model and The O-Ring Model for developing countries?

A: Developing countries comprise majority of the WTO members. They are grouped developing countries and...

Q: The nominal interest rate in the US is R$ = 3% and in Europe Re = 2%. The spot exchange rate is E$/e...

A: In the question above, it is given that : The nominal interest rate in the US is 3% The nominal int...

Q: Rewrite it

A: The article is about the PPF. PPF refers production possibility frontier, which is also known as the...

Q: It is generally agreed that excise taxes should be imposed on sellers of tobacco but not on sellers ...

A: An indirect tax that is being levied on the sale, license, or production of certain goods by the Cen...

Q: Utikasn Ltd. purchase glass bowls for € 2.5 per unit or they can manufacture it with fixed cost of €...

A: Here, two options are available for Utikasn Ltd. to choose to manufacture and sell in the market.

Q: There are two main models explained in the chapter, i.e. the big-push model and the O-ring model. Ho...

A: A country having a less developed industrial base and a low level of Human Development Index with re...

Q: Suppose that at the equilibrium price of $50, the equilibrium quantity is 400 units and consumer sur...

A: Market is in equilibrium when demand for goods and supply for goods are equal at certain price level...

Q: A. Solve step by step B. What type of equation is this 10X²-12 >0

A: Answer is given below

Q: Other things held constant, the greater the price of a good the greater the consumer surplus. the hi...

A: Consumers have a desire to purchase a product, and manufacturers create a supply to match that deman...

Q: In an effort to encourage economic growth, the United States government has cut corporate income tax...

A: The government uses the fiscal policy to spur up economic growth. The expenditure and taxes are part...

Q: 4. The profit function of Firm GG is n=-2q2+280q. What is the profit maximizing quantity?What is the...

A: Given: Profit function, p=-2q2+280q  

Q: EXAMPLE 5.4 M/S Krishna Castings Ltd. is planning to replace its annealing furnace. It has received ...

A: Future value is the value of an asset at a specific date. It measures the nominal future sum of mone...

Q: We may classify an interest rate, which specifies the actual rate of interest or principal for one y...

A:     A nominal rate is the rate which the lender publishes as it is without taking compounding into t...

Q: At most airports, the potential for increased revenues is marginal. True False.

A: Answer-

Q: which statement is correct If a good is not being produced by sellers with the lowest cost, then th...

A: Profit Maximization level: The level of production that maximizes the profit of the firm or the leve...

Q: Eli and Taylor are partners in a restaurant business. They are in talks with Sandra to join their bu...

A: A business where there is a formal agreement between people who tend to distribute responsibilities ...

Q: In the graph, producer surplus is equal to P. 10 D 6. $12 O $30 O $54

A: Given

Q: Total revenue increases if the price of the good A) falls and supply is inelastic. B) rises and dema...

A: Option A When supply is inelastic any % increase in price will be less than % change in quantity sup...

Q: Consider two Solow economies (A and B), exactly identical except that economy A has a higher share o...

A: This is a model of exogenous economic growth. It studies how changes in population growth, savings r...

Q: Which of the following importation is not subject to consumption tax? *   Importation of ornamenta...

A: When talking about consumption tax, it is the tax that is imposed on the use of final goods and serv...

Q: GDP does not take into account the underground economy, and offers measures of government production...

A: GDP refers to Gross Domestic Product. It is the sum of the value of all the goods and services produ...

Q: A credit plan charges interest rate of 35% compounded monthly. Find its effective rate. 41.20% O 40....

A: Given interest rate = 35 % compounded monthly    

Q: 30. A man loaned P15,000 pesos from a bank which offers a discount rate of 8% payable at once. How m...

A:   A loan is a sort of credit in which a sum of money is provided to another person in return for the...

Q: QD = 100 – 2p QS = 2p – 20  Find the domestic market equilibrium. Graph the impact of opening to i...

A: 1) To find the domestic price equilibrium first we need to make the quantity supplied equal to the q...

Q: An investment of P20,000 will be required at the end of the year. The project would terminate at the...

A: Investment Required Initially after year 1 = 20,000 Salvage Value after year 5 = 26000    So , there...

Q: The following diagram represents an economy in which total factor productivity z increases. PPF2 PPF...

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in ...

Q: How has that migration of labour been of advantage to other countries?

A: Migrant labour are considered as those informal and unskilled workers who pass about systematically ...

Q: Why do some marginalised groups in the USA and Canada reject the idea of globalisation? In answering...

A: Populations beyond the normal society and extremely susceptible populations that are deliberately re...

Q: If a family spends its entire budget in a given time frame, the family can afford either 10 restaura...

A: Opportunity cost refers to the loss of best alternative while making a decision.

Q: provides a way (which is not able to be duplicated), for a firm to differentiate its product offerin...

A: * ANSWER :-  Based on the given information the answer is provided below .  

Q: Three married couples in the state of Maryland—Bob and Carol, Ted and Alice, and Ross and Mike (reme...

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...

Q: 5. Give at least four (4) ways the Global Financial Crisis of 2007-2008 could have been protected.

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific ...

Q: Which of the following is a benefit of reshoring? O Can result in higher inventory O Can result in h...

A: A result in the higher inventory Reshoring is defined as the primary advantage and enabling it as th...

Q: a. Define the gravity model. Specify the variables utilised. b. Apply the gravity model to India and...

A: Answer a.  In international economics, the gravity model of international commerce is a model that f...

Q: What role did Texas play during the Civil War? 1848-1865

A: The Texas Revolution, also known as the Struggle of Texas Independence, was a war conducted between ...

Q: Why do some marginalised groups in the USA and canada reject the idea of globalisation? In answering...

A: Globalization: Globalization helps the countries to interact with each other and do trade, globaliza...

Q: Changes in the institutional structure of the U.S. economy following the Great Depression: had no ef...

A: “Since you have asked multiple question, we will solve the first question for you. If you want any s...

Q: What would be the annual worth on this investment?

A: Given intial cost = 100000 $ Annual savings = 60000 $ Salvage value = 20000$ Annual expense = 10000 ...

Q: in your own words or understanding what is global city?

A: When talking about global city, it relates to the place that is open to trade with different cities ...

Q: 4. Consider the following static zero sum game G. Colin A C DE -4 3 -1 -1 2 4 4 C 1. -1 -1 -3 3. -1 ...

A: Zero sum game is defined as the game in which the sum of payoffs of both the players is equal to zer...

Q: QUESTION 11 Which of the following pictures represents the effect of an increase in available hours ...

A: Leisure time is when you are not working and may relax and do things that you like.

Q: 9. The People's Republic of China has an estimated $101.54 trillion of capital with a depreciation r...

A: In China, New investment=I=$20.5*0.45T=$9.225T Depriciation=dK=$101.54*0.052=$5.28T I>dK, so chin...

Q: 4. Assume wealth w; and assume two goods, 1 and 2, with prices pi and p2, and Walrasian demands x1 a...

A: An Alfred Marshallian demand function (named after him), in microeconomics, is the quantity of a giv...

Q: A young engineer borrowed P10,000 at 12% interest and paid P2,000 per annum for the first 4 years. W...

A: Simple interest depends on the chief measure of an advance or the first store in quite a while accou...

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.