the principle of comparative advantage holds that under free trade an agent will produce more of and consume less of the good for which they have a comparative advantage.comparative advantage is the gain from trade to a nation which arise from differences in their factor endowment pr technological advancement. the produce has a comparative advantage if they can produce the good at a lower relative opportunity cost.
Erwoti answered the question on August 20, 2019 at 12:26
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Distinguish between a trade-off and an opportunity cost in macroeconomic theory.
(Solved)
Distinguish between a trade-off and an opportunity cost in macroeconomic theory.
Date posted:
March 18, 2019
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Answers (1)
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State the factors that a business firm should consider while developing an advertising policy
(Solved)
State the factors that a business firm should consider while developing an advertising policy
Date posted:
February 7, 2019
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One of the determinants of demand for a commodity is advertising
Explain the extent to which advertising influences demand
(Solved)
One of the determinants of demand for a commodity is advertising
Explain the extent to which advertising influences demand
Date posted:
February 7, 2019
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Answers (1)
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Compute the market equilibrium price (Px) and quantity (Qx)
(Solved)
Compute the market equilibrium price (Px) and quantity (Qx)
Date posted:
February 7, 2019
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Answers (1)
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Determine the market demand and market supply functions for commodity x.
(Solved)
Determine the market demand and market supply functions for commodity x.
Date posted:
February 7, 2019
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Answers (1)
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In a perfectly competitive market the average revenue and average cost functions are:
Based on the...
(Solved)
In a perfectly competitive market the average revenue and average cost functions are:
Based on the given functions, determine: The level of output at which the firm break-evens
Date posted:
February 7, 2019
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Answers (1)
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In a perfectly competitive market the average revenue and average cost functions are:
(Solved)
In a perfectly competitive market the average revenue and average cost functions are:
Based on the given functions, determine: Fixed and Variable cost functions
Date posted:
February 7, 2019
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Answers (1)
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Make a distinction between fixed and variable costs of production. Give examples of each.
(Solved)
Make a distinction between fixed and variable costs of production. Give examples of each.
Date posted:
February 7, 2019
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Answers (1)
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Write brief notes on Isoquants.
(Solved)
Write brief notes on Isoquants.
Date posted:
February 7, 2019
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Answers (1)
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Write brief notes on Producer's surplus
(Solved)
Write brief notes on Producer's surplus
Date posted:
February 7, 2019
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Answers (1)
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Write brief notes on Exchange rate
(Solved)
Write brief notes on Exchange rate
Date posted:
February 7, 2019
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Answers (1)
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Write brief notes on Choice , Scarcity and opportunity cost.
(Solved)
Write brief notes on Choice , Scarcity and opportunity cost.
Date posted:
February 7, 2019
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Answers (1)
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What are the main problems associated with National Income Accounting in developing countries?
(Solved)
What are the main problems associated with National Income Accounting in developing countries?
Date posted:
February 7, 2019
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Answers (1)
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The Economic Advisory Department of Exam land has estimated that its country?s marginal propensity to consume equals 0.6, investment in millions of shillings equals 2,000,...
(Solved)
The Economic Advisory Department of Exam land has estimated that its country‟s marginal propensity to consume equals 0.6, investment in millions of shillings equals 2,000, Government spending 8,000, autonomous consumption 10,000 and net exports 1,000.
If the currency of Exam land depreciated, what would likely happen to the National Income? Why?
Date posted:
February 7, 2019
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Answers (1)
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The Economic Advisory Department of Exam land has estimated that its country?s marginal propensity to consume equals 0.6, investment in millions of shillings equals 2,000,...
(Solved)
The Economic Advisory Department of Exam land has estimated that its country‟s marginal propensity to consume equals 0.6, investment in millions of shillings equals 2,000, Government spending 8,000, autonomous consumption 10,000 and net exports 1,000
Calculate the level of equilibrium of National Income for this economy
Date posted:
February 7, 2019
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Answers (1)
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Using separate diagrams, illustrate and explain the substitution and income effects of a price fall for both inferior and giffen goods
(Solved)
Using separate diagrams, illustrate and explain the substitution and income effects of a price fall for both inferior and giffen goods
Date posted:
February 7, 2019
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Answers (1)
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Differentiate between inferior and giffen goods.
(Solved)
Differentiate between inferior and giffen goods.
Date posted:
February 7, 2019
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Answers (1)
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Assume a consumer spends all his income in the purchase of two goods X and Y whose prices are Sh. 30 and Sh. 20 per...
(Solved)
Assume a consumer spends all his income in the purchase of two goods X and Y whose prices are Sh. 30 and Sh. 20 per unit respectively. The consumer‟s monthly income is Sh. 12,000. He is satisfied with various combinations of X and Y but prefers to spend his income in equal proportions on the two commodities, that is, at a ratio of 1:1 to maintain his level of satisfaction.
What is the effect of an increase in the consumers income from Sh. 12,000 to sh. 24,000 per
month?
Date posted:
February 7, 2019
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Answers (1)
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Assume a consumer spends all his income in the purchase of two goods X and Y whose prices are Sh. 30 and Sh. 20 per...
(Solved)
Assume a consumer spends all his income in the purchase of two goods X and Y whose prices are Sh. 30 and Sh. 20 per unit respectively. The consumer‟s monthly income is Sh. 12,000. He is satisfied with various combinations of X and Y but prefers to spend his income in equal proportions on the two commodities, that is, at a ratio of 1:1 to maintain his level of satisfaction.
Using clearly labeled diagram; Show the relevant budget line and indifference curves indicating the equilibrium position of
the consumer.
Date posted:
February 7, 2019
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Answers (1)
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If money supply in a given economy equals 500 while the velocity and price equal 8 and 2 respectively, determine the level of real and...
(Solved)
If money supply in a given economy equals 500 while the velocity and price equal 8 and 2 respectively, determine the level of real and nominal output.
Date posted:
February 7, 2019
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Answers (1)