Think about a country where most economic production results in
a terrible smell that makes people sick. What would be the
trade-off if the bad result (a terrible smell) were reduced?
Choose one:
A. more of the activity that makes people sick
B. lower incomes
C. higher incomes
D. less of the activity that makes people sick
D. Less of the activity that makes people sick- is correct
Opportunity cost of reducing the number of people falling sick is the decrease in such economic activities.
Think about a country where most economic production results in a terrible smell that makes people...
Think about a country where most economic production results in air pollution that creates lots of smog. What would be the trade-off if the bad result (air pollution) were reduced?Choose one:A. more of the activity that creates lots of smog B. less of the activity that creates lots of smog C. lower incomesD. higher incomes
Think about a country where most economic production results in a ground-shaking explosion that cracks the foundations of buildings What would be the trade-off if the bad result (a ground-shaking explosion) were reduced? Choose one: A. less of the activity that cracks the foundations of buildings B. higher incomes C. more of the activity that cracks the foundations of buildings D. lower incomes
Think about a country where most economic production results in loud construction noise that gives people headaches. What would be the trade-off if the bad result (loud construction noise) were reduced?
Every year, the Gallup poll asks a sample of people in the United States whether they believe foreign trade provides "an opportunity for economic growth through increased U.S. exports," or whether they believe foreign trade represents "a threat to the economy from foreign imports." The table shows the responses for two years. View of foreign trade Year Favorable to foreign trade Unfavorable to foreign trade State of the U.S. economy 2008 41% 52% Deep economic recession 2017 72% 23% Economic...
Economics is about setting and ordering economic goals which are economic growth,full employment,economic efficiency, price level stability,economic freedom,equitable distribution of income, economic security, balance of trade. How you order the goals is based on your political philosophy-its based on value judgements-its a normative issue. Some goals are complimentary while others conflict. For example if you prioritize economic freedom and growth you are a conservative and likely to vote republican.. You would de-emphasize equity and security. If equity and security are...
Ricardo’s theory of trade suggests that it makes sense for a country to specialize in the production of those products that it produces most efficiently and to buy the products that it produces less efficiently from other countries, even if this means that the country is buying products that in reality, it could produce more efficiently itself. This means that Ricardo showed that a country can derive advantages by trade even though it has an absolute advantage in producing all products. The Heckscher-Ohlin theory of ...
Ricardo’s theory of trade suggests that it makes sense for a country to specialize in the production of those products that it produces most efficiently and to buy the products that it produces less efficiently from other countries, even if this means that the country is buying products that in reality, it could produce more efficiently itself. This means that Ricardo showed that a country can derive advantages by trade even though it has an absolute advantage in producing all products. The Heckscher-Ohlin theory of ...
The U.S. government restricting the quantity of sugar imports into the country is an example of a(n): trade settlement. trade quota. market hanger. embargo. The key industries argument for trade restrictions relies on the notion that: war may disrupt trade flows. some industries deserve protection because they provide positive spillover effects to the rest of the economy. products with inelastic supply are the major source for job creation. economies of scale are easier to achieve in exporting industries. Which of...
1. Given the information in Table 1, in a two country and two-product Ricardian model, which of the following statements is (are) true? Table 1 Unit Labour Requirements T-shirt Brandy 4 hours 12 hours 6 hours 12 hours United States France A) The pretrade price ratio in France is 1 brandy - 2 T-shirts. B) The US pretrade price ratio is 1 brandy - 4 T-shirts. C) The US pretrade price ratio is 1 T-shirt = 1/3 brandy. D) The...
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...