the ricardian model, a. differences in factors endowments give rise to trade b. countries can run trade deficits and surpluses c . there is only one industry in each country d. there is only one factor of producti
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in the ricardian model,
a. differences in factors endowments give rise to trade
b. countries can run
c . there is only one industry in each country
d. there is only one factor of production
Step by step
Solved in 2 steps
- Explain what gains from trade are. Use the Ricardian model to explain the how an economy obtains gains from trade.iv) Describe trade in the Ricardian model. It will be helpful to consider a situation before trade (autarky) and after trade.If countries specialize according to their absolute advantage then the Ricardian model statesthata. the. trade is beneficial for all trade partners.b. trade is a stupid idea anyway.c.it is ambiguous whether trade is beneficial for all trade partners.d. trade is only beneficial for those who have absolute advantage as well
- Explain what is Ricardian Model? (International trade)What is the prediction of Ricardian Model with regard to trade in the real world? Explain,Is there any empirical evidence to support the prediction of Ricardian Model?Why do we have opposition again free trade? Does it conflict with Ricardian’s gains from trade?
- What is the prediction of Ricardian Model with regard to trade in the real world?Problem 1. This problem is based on the Ricardian Model. Assume that 2 countries, Gryffindor and Slytherin, use troll labor to produce 2 goods, magic wands and chocolate frogs. (a) In Slytherin, 1 troll can produce 6 magic wands or 10 chocolate frogs, while in Gryffindor the production of 1 magic wand requires 2 trolls and the production of 1 chocolate frog requires 1 troll. Assume that there are 10 trolls in Slytherin and 20 trolls in Gryffindor. Draw a PPF for each country. (b) Which country has a comparative advantage in magic wands and why? (c) What is the possible maximum relative price of a magic wand in the trade equilibrium? What is its possible minimum price?Which statement is NOT true? A. Through the Belt and Road Initiative, China is not just selling resources and skills but they're also exporting the way China does business signalling that a country doesn't have to be liberal (democratic) to be successful. B. More than 200 countries have joined the Belt and Road Initiative. C. China invests in underdeveloped and developing countries without looking at their political records, human rights violation records and anti-corruption records. D. With China's enormous economic influence around the world, none of the countries want to go against China's will because they have no power to go against them or fear the loss of future prospects in foreign investment from China.
- Winston S. Churchill said, “I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” There is debate on the above statement with one view holding that since tax is the guaranteed source of Government revenue, it only makes sense that Government should be planning development based on tax as that is the revenue it is sure of. Hence, there is no escape from a nation taxing itself into prosperity. The other view argues that any nation should rely on its nationals for both demand and supply. Hence, its government should leave its nationals with enough incomes to save and invest thereby creating supply, but also with enough to buy and thereby creating demand. Give a critical analysis of the two sides of the debate and, in your conclusion, give clear recommendation of how government should tax its nationals, both natural and legal entities.What is neoliberalism? What is influence of its ideas in the pursuance of economic globalization? State the pros andcons of these ideas.Write an essay on how the 2 factors ,unemployee and decrese of export give impact to economic growth,you essay must not least than 450 words.(50marks) Beside that,write an essay on how monentory policy can solve the unemployee and also how the subsidy export increase country export,you essay must more than 450 words.(50marks)
