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Q. It is claimed that the persistence of protectionism is often the result of the fact that those who lose from trade are usually a much more informed, cohesive and motivated a group than those who gain. Give a specific example from "real life" that supports this claim.
Answer: The shift of shipbuilding comparative benefit in shipbuilding away from the U.S. has basis economic damage to trained shipbuilders, and to owners of shipyards, as well as to peripheral businesses located near such shipyards. These groups as well as their Congressional representatives will be extremely much aware of the damage being done. The gainers would be those who pay rather lower shipping charges, or lower retail prices caused by the use of cheaper (foreign built) ships. Because shipping is usually a very small component of total retail cost this gain will hardly be noticeable by any one single group in the economy.
what are the limitation of comparative advantage?
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Q . Use the following table to demonstrate the significance of macroeconomic policy coordination. Demonstrate that the two governments would have been happier if the two of them h
What does SRC stand for?
Q. Explain why Relative PPP is useful when comparing countries that base their price levels on different product baskets. Answer: For instance If the U.S price level increase
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Q. To answer the following question, please refer to the figure below. Concentrating only at the lower left quadrant, discuss the relationship between the U.S. real money supply a
discus how every economy is essentially part of the international economy
Q. Why is it useful to make a distinction between debt and equity instruments? Answer: Debt instruments such as bank deposits and bonds are repaid regardless of econo
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