Q. 1. During the Second World War, Germany’s factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germany’s production possibilities curve? [10 Marks]
Q. 2. What assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world? [10 Marks]
Q. 3. Are differences in geography behind the differences in absolute advantages? [10 Marks]
1. Germany's PPF would have moved internal, on the grounds that the nation's lessening in labor, capital and different information sources would diminish their capacity to create yield at each portion of assets.
As World War II advanced, the capacity of Germany to recharge its military peronnel and its protected units began to decrease. As an ever increasing number of men kicked the bucket on the field, there were essentially insufficient individuals to supplant them.
As an ever increasing number of tanks, planes and industrial facilities were devastated, Germany couldn't stay aware of generation and was step by step declining in its capacity to dispatch both a hostile assault or deal with an appropriate resistance.
2. The primary supposition that must be valid for Adam Smith's hypotheses to be substantial is that everybody is acting such that most advantages them and no one else. Since assets are viewed as restricted, individuals are suspected to act in manners that most advantage them and no one else. These presumptions may be substantial much of the time, yet the idea of philanthropy demonstrates that they are not generally the situation, and the undetectable hand may guide individuals now and again, yet not generally.
3. Yes, topography does in some cases assume a job in causing
contrasts in outright favorable circumstances. Supreme bit of
leeway is a term utilized when any nation, so as to deliver a
decent or administration, utilizes less assets when contrasted with
different nations.Contrasts in topography can be a wellspring of
supreme preferences, yet it isn't
the main source. For instance, the measure of exertion required to
mine silver depends, as it were, on where rich stores of silver are
found, which relies upon topography. Be that as it may, profoundly
profitable car production lines can exist anywhere in light of the
fact that profitability in vehicle generation relies upon things
other than topography.
Q. 1. During the Second World War, Germany’s factories were decimated. It also suffered many human...
During the Second World War, Germany’s factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germany’s production possibilities curve? How is a similar effect seen during a recession?
Please answer the following in a few sentences each. 1. Why is a production possibilities frontier typically drawn as a curve, rather than a straight line? Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it. 2. During the Second World War, Germany’s factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germany’s production possibilities curve? How is a similar effect...
1. Give the three reasons that explain why the division of labor increases an economy’s level of production. 2. What are three reasons to study economics? 3. Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert. 4....
1. Give the three reasons that explain why the division of labor increases an economy’s level of production. 2. What are three reasons to study economics? 3. Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert. 4....
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...