Illustrate the rate of exchange of two products
Illustrate the rate of exchange of two products?
Expert
The rate of exchange of these two products will be determined through negotiation; the outcome is called the terms of trade. The terms of trade will be limited by the relative costs of production within each country. The U.S. will not forgo more than 1 ton of soybeans to get 3 tons of avocados and Mexico will not give up more than 4 tons of avocados for 1 ton of soybeans. Somewhere between these limits, trade is possible. In the text example, the terms of trade are assumed to be 3.5 tons of avocados for each ton of soybeans. Americans would specialize in soybeans only if they could obtain more than 3 tons of avocados for 1 ton of soybeans by trading with Mexico.
Illustrations of opportunity costs which you might or will have incurred would comprise: (i) severe injuries suffered within an accident since you failed to buckle up. (ii) the income you could earn when you were not in school. (iii) time spent studyi
According to Adam Smith nation's wealth is, not the gold this possesses, but somewhat it’s: (1) number of people. (2) capability to give goods for its people. (3) foreign investments. (4) domestic financial capital. (5) militar
What are economic resources? What are the major functions of the entrepreneur?
How did producers decide on the best combinations of resources to use? Who made these resources available, and why?
True or false? “U.S. exports create a demand for foreign currencies; foreign imports of U.S. goods generate supplies of foreign currencies.” Explain.
When, in a perfectly competitive industry, where the market price facing a firm is above its average total cost on the output here marginal revenue equivalents marginal cost, in that
Instruction: McDonald's vs. Burger King - these two fast food chains use different waiting line design: Independent queue vs. pooled queue. To compare the two different queue systems on equal footing, let's assume that we pick a McDonald's sto
Explain about Market Structures briefly.
I have a problem in economics on current production possibilities frontier. Please help me in the following question. The combination of 70 units of clothing and 30 units of food are: (1) Completely employs the economy's capacity. (2) Would leave most
How will the goods and services be produced?
18,76,764
1949676 Asked
3,689
Active Tutors
1412268
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!