--%>

Elucidate the gains that have occurred before specialization

Elucidate the gains that have occurred using the resources as before specialization?

E

Expert

Verified

Now each country will have more than they had originally: Mexico now has 25 tons of avocados left plus 10 tons of soybeans.  U.S. now has 35 tons of avocados and keeps 20 tons of soybeans. Mexico has gained 1 ton of each; U.S. has gained 2 tons of avocados and 1 ton of soybeans, and these gains have occurred using the same resources as before specialization. This example illustrates that specialization and trade can improve overall output even when one country (U.S.) can produce more of both items compared to the other without trade.  Specialization and trade have the same effect as an increase in resources or technological progress.

   Related Questions in Business Economics

  • Q : Managerial Economics Managerial

    Managerial Economics Meaning and definition Managerial economics general refer to the integration of economy th

  • Q : Elucidate the gains that have occurred

    Elucidate the gains that have occurred using the resources as before specialization?

  • Q : Micro economics and macro economics

    Micro economics and macro economics:Economic theory can be widely divided into micro and macroeconomics. The word micro means small and macro means big.In microeconomics, we deal

  • Q : Problem regarding private firms I have

    I have a problem in economics on Problem regarding private firms. Please help me in the following question. The mass of U.S. output is generated by: (i) Producer cooperatives. (ii) Non-profit organizations. (iii) Private firms. (iv) Government agencie

  • Q : Describe four important areas to

    Describe four important areas to emphasize Expenditures?

  • Q : Surpluses in the balance of trade The

    The advocates of laissez-faire policies favor: (i) Govt. control of economy. (ii) Public ownership of all the resources. (iii) Income to be distributed according to requirement. (iv) Surpluses in the balance of trade. (v) Minimal govt. intervention in economy.

  • Q : Initial systematic and popular

    The initial systematic and popular description of capitalism was explained in: (1) Sir Thomas Mun’s England’s Treasure by Foreign Trade. (2) Joseph A. Schumpeter’s Capitalism, Socialism, and Democracy. (3) John Maynard Keynes’

  • Q : Explain about the principle of

    Economic efficiency needs that, relative to the other goods which different individuals might consume, the people who value exact goods relatively the most should own and/or use all goods. Such principle is termed as: (i) economic equity. (ii) allocat

  • Q : Exchange is the necessary consequence

    Explain: “Exchange is the necessary consequence of specialization.”

  • Q : Briefly state the pros and cons of

    Briefly state the pros and cons of Corporation?