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The gains from specialization and trade are based on comparative advantage, which reflects the relative opportunity cost. When countries specialize in producing goods and services for which they have comparative advantages, total production in the global economy rises. Trade advocates argue that this increase in the size of the economic pie can be used to make all trading countries better off through international trade. Economists also use the principle of comparative advantage to advocate free trade among countries as a better policy. Trade is not based on absolute advantages countries have but the relative (comparative) advantage.
archer daniels midland company is considering buying a new farm that it plans to operate for 10 years. the farm will
What effect will the distribution have on Samuel’s gross income and tax liability if he invests the $20,000 received in a mutual fund?
Dunkin Donuts raises the price of its French Vanilla coffee by 15%. The demand for Dunkin Donuts glazed doughnuts will change by what percentage and in what direction?
What are the mean earnings of males and females in this sample? Does the regression result support the claim in the news?
select a global company of your choice in the service industry. describe the main line of business of the company and
Suppose consumers' income is $50,000 and the price of satellite TV service is $90. At what price would the demand for cable TV services be 55,000 households?
The bank is constructing a new Internet banking strategy to entice new consumers to sign up. Your manager has asked you to contribute to this strategy through describing how money works.
Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..
the city of new orleans has 200 adverstising companies 199 of which employ designers of normal ability at a salary of
Which of the following is a characteristic of both monopolistic competition and perfect competition?
Show that if oil is produced from two reservoirs, one with high marginal cost and one with low marginal cost, it is not possible for the Hotelling rule to be satisfied for each reservoir simultaneously. Give two reasons that oil might be produced ..
according to the article in the new york times in 2012 everyone has piled into the junk bond market. the article also
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