How the market reacts to a permanent difference
Distinguish between how the market reacts to a temporary difference in prices for the same resource and how the market reacts to a permanent difference. Why do the reactions differ?
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Draw the production possibility frontier for Malaysia. If Malaysia only produces the good in which it has a comparative advantage, where will its production point be on the production possiblity frontier?
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By definition, a bank that pays simple interest on a savings account will pay interest:
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