If prices increase for an export good and provide an incentive to increase production in an...
Question:
If prices increase for an export good and provide an incentive to increase production in an economy with specialized resources, will the higher price always outweigh the increasing opportunity cost of pulling specialized factors away from producing other goods and services and result in complete specialization?
What would happen if the supply of monopoly money was suddenly increased, but V and T remained the same? How would it be different if T were to temporarily increase, but then revert back to its normal level within a few days?
What is comparative advantage in specialization in production and trade and what are the two ways to explain why it occurs?
Elasticity:
Elasticity refers to the percentage change in one variable that occurs due to percentage change in another variable. The demand for goods and services by any consumer is affected by some variables. We can measure the change in demand by its elasticity.
Answer and Explanation: 1
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View this answerThe relation is not always the same. With the increasing price level for exported goods, other firms are also attracted with the higher profits of the...
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Liberal Internationalism: Definition & Principles
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Chapter 15 / Lesson 3
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Learn about liberal internationalism. Understand the definition of internationalism, see how liberalism applies to international relations, and learn its criticisms.
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