EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Question
Chapter 19, Problem 6SP
(a):
To determine
Trade helps to specialize based on
(b):
To determine
Trade helps to consume variety of products.
(c):
To determine
Trade increases the competition in the market.
(d):
To determine
Trade helps to enjoy the returns to scale.
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Students have asked these similar questions
Which of the following statements about helping poor countries are true?
a) Opening our markets to their trade is by far a more effective way to help them that giving them foreign aid?
b) Opening our markets to their trade not only doesn't cost us, it provides a net benefit to our economy as well
c) We should always give as much foreign aid as we can directly to their governments
d) If the "recipient" country does not have a responsible government or much in the way of civil society, foreign aid should be limited to things such as fighting disease, aid that is provided directly to the people, such as microfinance or infrastructure project provided directly avoiding passing funds through the "recipient" country governments, and aid conditional on reforms to improvements governance.
e) We should protect our domestic industries against the lower wages of the poorer countries, so we may giv them foreign aid but should never open our markets to them.
A country should specialize in producing the goods for which
a. it has the highest opportunity cost.
b. it has an absolute advantage.
c. it can produce a larger quantity than any other country.
d. it has a comparative advantage
What is the term for a situation in which a country can produce a good at a lower opportunity cost than another country? A. Absolute advantage B. Comparative advantage C. Opportunity advantage D. Trade advantage
Chapter 19 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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Similar questions
- Question: what are some examples of successful expansion of global trade, countries are seeing, and using, trade as a weapon during and after recessions? please answer in paragraphs, thank you for your time!arrow_forwardHow can the United States benefit from specialization and trade? Provide examples from principles of economics.arrow_forwardExplain what is Comparative Advantage and an give example? Why is this theory important to consider for international business?arrow_forward
- Compare and explain absolute and comparative advantage by giving examples. What is international economics about ? What can a country gain from trade ? Explain by giving examples.arrow_forwardWrite short notes on thefollowing with example: (a) Comparative advantage; (b) Absolute advantage; (c) Trade Surplus; (d) Trade Deficit; (e) Trade protectionismarrow_forwardfree trade, whereas others are unhapppy, even angry, that the government has reduced regulations on imports of such products as textiles and furniture, causing factories to shut down and employees to lose their jobs. they feel that the U.S. government should legislate greate egulation of imported goods to give American companies an advantage or at least to lessen the advantage that companies in other countries receive from their government. What do you think? How do you justify your answer?arrow_forward
- Which one of the below describes a situation where one country's production cost are lower than the rest of other countries? a) absolute advantage, b) fair advantage, c) comparative advantage, d) relative advantagearrow_forward1. Production Possibilities Frontier 2. Trade. How does specialization and trade make individuals and countries wealthier? 3.Think about why countries benefit from foreign trade. Also consider a scenario where Country A is more productive than Country B at producing all goods. Why is it still in Country A’s best interest to trade with Country B?arrow_forwardWhat theory attempts to explain why Japan is strong in automobiles, Switzerland in precision instruments and pharmaceuticals, and Germany in chemicals? Select one: a. Absolute advantage b. New trade theory c. National competitive advantage d. Comparative advantagearrow_forward
- Country A can produce gadgets at a lower opportunity cost than any other producer of gadgets. As a result Country A must have . a) a superior gadget making technology b) an absolute advantage in gadget production c) a comparative advantage in gadget production d) a constant opportunity cost associated with gadget production e) more factors of production devoted to gadget production than any other countryarrow_forwardWhich of the following are examples of Free Trade Zones? (Check all that apply) A. North American Free Trade Agreement (NAFTA) B. The Central American-Dominican Republic Free Trade Agreement (CAFTA) C. The European Union (EU) D. China-Asean Free Trade Area E. Mercosurarrow_forward
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