• Econ Exam
    Exam 4 1.  Graphically and in words define the concepts of externalities and explain how the presence of externalities affects market efficiency. Externalities are third party effects that occur with the production and (or) consumption of a product. In other words the effects felt by someone...
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  • Comparitive Advantage
    comparative advantage In economics, the law of comparative advantage refers to the ability of a party (an individual, a firm, or a country) to produce a particular good or service at a lower opportunity costthan another party. It is the ability to produce a product with the highest relative efficiency...
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  • Eit Review
    MID-TERM TEST Question 1: Use both General Equilibrium and Partial Equilibrium analyses to explain the effects of a tariff in the small country case taking into consideration the seven effects of a tariff. Notes: Chapter 8, figures 8.1,8.2,8.3,8.5 - Explanation of what a ‘small country’ is and how that...
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  • Management
    international trade. ------------------------------------------------- Absolute Advantage    The Scottish economist Adam Smith developed the trade theory of absolute advantage in 1776. A country that has an absolute advantage produces greater output of a good or service than other countries using the...
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  • International Trade Simulation
    Economic and International Trade Simulation Report, the advantage and limitation of international trade will be weighed, four key points in the simulation will be listed, absolute and comparative advantage, influences affecting foreign exchange rates, concept summary results, the world trade organization; and...
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  • Elasticity
    ECONOMIC CONCEPTS 2011 KENNETH M. ZACHARY SR. AMERICAN INTERCONTINENTAL UNIVERSITY 3/26/2011 What is Michelle’s opportunity cost of producing potatoes? * Opportunity cost is the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices...
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  • Comparative Advantage
    Microeconomics Topic 2: “Explain the principle of comparative advantage and how it leads to specialization and gains from trade.” Reference: Gregory Mankiw’s Principles of Microeconomics, 2nd edition, Chapter 3. Why People and Countries Trade This section lays the foundation for why countries and individuals...
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  • The Antecedents of International Business Theories
    transactions (private, government and semi-government) that take place between two or more nations. International business is a newly coined term, but the concept is quite traditional. Actually, the term international business is derived from “international trade”. In ancient days, producers of a country used...
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  • International Trade Sumilation
    produce more cheese and export to the neighboring countries. Absolute advantage is when one country is able to produce cheaply compared to another country, this means the costs is lower than the other country and so they have absolute advantage. So if we were to have the same amount of labor, hours spent...
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  • David Ricardo & the Comarative and Absolute Advantage
    ECO2023 DAVID RICARDO & THE COMARATIVE AND ABSOLUTE ADVANTAGE   David Ricardo was one of those rare people who achieved both tremendous success and lasting fame. After his family disinherited him for marrying outside his Jewish faith, Ricardo made a fortune as a stockbroker and loan broker. When...
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  • Dichvushock1
    Principles of Economics highlighted in Chapter 1 is that 47 48 PART 1 INTRODUCTION trade can make everyone better off. This principle explains why people trade with their neighbors and why nations trade with other nations. In this chapter, we examine this principle more closely. What exactly...
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  • Wk 1 Individual Assignment Major Trade Theories
    December 20, 2010 Professor Bobbie Murray Absolute Advantage: General Theory: Absolute advantage theory addresses when a country has multiple products. “According to theory of absolute advantage, a country has an absolute advantage over the others if it is able to produce more of...
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  • Classical Country Based Trade Theories
    protect their key industries. Absolute Advantage However Adam Smith believes that Mercantilism’s basic problem is that it confuses the acquisition of treasure with the acquisition of wealth. He states that it actually weakens a country as it loses the advantage of trade and benefit from it. Furthermore...
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  • Managerial Economics
    Section A (Part-1) Q1. It is a concept where goods are produced without taking into consideration the choices or tastes of customers. Answer. . Q2. It involves individuals who buys products or services for personal use and not for manufacture or resale. Answer. . Q3. It is groups of people...
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  • Theory of Comparative Advantage
    Theory of Comparative Advantage Historically, nations have been trading with each other for hundreds of years for profit or because they do not have enough resources (land, labor and capital) to satisfy all the needs of consumers. For example, Japan has a highly skilled labor force that use technologically...
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  • Individual Project 1 - Microeconomics
    Economic Concepts for Unit One Scenario Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes, she can raise 200 pounds of...
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  • Wto Comparative Advantage
    Comparative advantage From Wikipedia, the free encyclopedia Jump to: navigation, search In economics, the law of comparative advantage refers to the ability of a party (an individual, a firm, or a country) to produce a particular good or service at a lower opportunity cost than another party. It is...
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  • International Trade Theory
    International trade theory explains the concept of the international trade and distributions of the gains from the trade. The theory highlights the necessity and importance of the trade. International Trade theory highlights the different models of international trade, that have been created to define...
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  • International Trade
    between countries. Trade takes place from low price country to high price country. Trade leads to specialization as well. ABSOLUTE ADVANTAGE The main concept of absolute advantage is generally attributed to Adam Smith for his 1776 publication. He argued that it was impossible for all nations to become...
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  • International Trade Simulation
    In order to understand International Trade, one has to first explain what international trade really is in its fullness. International Trade is individuals, companies or countries making a trade with one another for the goods or services that they provide. But even though trading goods is the main...
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