Government of a country imposes trade restrictions

Assignment Help Business Economics
Reference no: EM131523996

How are economies of scale, comparative advantage, and trade restrictions related?

1) If the government of a country imposes trade restrictions on the import of a certain good, the country will gain a comparative advantage in this good as well as economies of scale.

2) If a country has economies of scale in a good, its cost of production will increase, enabling the country to have an absolute advantage and become a world leader in trading this good.

3) If a country has economies of scale in the production of a certain good, the cost of production falls, causing the country to have a comparative advantage in that good.

4) If a country has a comparative advantage in producing a certain good, it gives rise to trade restrictions by the government, which leads to economies of scale.

Reference no: EM131523996

Questions Cloud

Compare characteristics of leadership and management : Explain how organizations function.Evaluate effectiveness of communications patterns using specific management situations.
Research and locate a current-events article : Research and locate a current-events article or video that, like the example article from Tulsa World, depicts ethical or unethical practices
Discuss what is the posterior probabilities : It is said that Napoleon assessed probabilities at the Battle of Waterloo in 1815. His hopes for victory depended on keeping the English and Prussian armies.
What is the expected capital gains yield : What is the current yield? What is the expected capital gains (or loss) yield for the coming year?
Government of a country imposes trade restrictions : If the government of a country imposes trade restrictions on the import of a certain good, the country will gain a comparative advantage.
Number of male customers : The manager of a Vancouver night club has observed that the number of male customers who visit the clubs follows as poisson distribution.
Should you drop your decision-analysis course : The problem is that you do not know how well you will do in the course. You can, however, assess a distribution for your score.
Discuss whether you believe the immunity provided : Discuss whether you believe the immunity provided is appropriate and also whether it unduly hinders the investigatory process.
Time from acceptance to maturity on banker acceptance : The time from acceptance to maturity on a banker’s acceptance (B/A) is 90 days. The importing bank’s acceptance commission is 1%.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd