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3 years ago

If an economist argues that everyone gains from trade, what reasoning is most likely underlying her argument?

Business

1 answer:

mylen [45]3 years ago

4 0

Answer:

If an economist argues that everyone gains from trade, the following reasoning is most likely underlying her argument:

Production according to the principle of comparative advantage lowers overall costs and therefore allows both countries to have a higher standard of living.

Explanation:

The comparative advantage refer to the situation in which an individual, company or a country offers its services and products at a lower rate as compared to its competitor. This leads to trade-off as you have to comprise for the gain of something.
This comparative advantage also increase the dependencies of nations or companies on each other.
For example, England and Portugal has benefited from this comparative advantage concept as England get the wine at lower cost from Portugal and Portugal also get earning by selling this wine to England.

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Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production

alexgriva [62]

Answer:

GDP is the value of all the goods and services produced within the domestic territory of the country in an accounting year.

GDP= Consumption + Investment + Government purchase + Net Exports (Imports)

The scenarios which are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States are as follows:

The value produced doings your own laundry.
The costs of over fishing and other overly intensive uses of resources
The leisure time enjoyed by households

When a U.S. company purchases and imports wood from Brazil to use to build new houses with in the United States, this purchase increases the investment component of GDP while also decreases net exports by the same amount. Therefore, the purchase of wood from Brazil causes no change in US GDP.

7 0

3 years ago

How would age determine which investment strategies you would choose?

joja [24]

It would make you not want to invest in someone young you would whanna invest in someone older with more experience with selling.Someone young would be a good way to promote your investment.
Hope It Helps Please Mark As BrainLiest

7 0

3 years ago

Read 2 more answers

Bramble Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of

Ket [755]

Answer:

(A)

cash 110,000 debit

common stock 5,000 credit

additional paid-in CS 81,086 credit

preferred stock 10,000 credit

additional paid-in PS 13, 914 credit

(B)

cash 110,000 debit

common stock 5,000 credit

additional paid-in CS 90,000 credit

preferred stock 10,000 credit

additional paid-in PS 5,000 credit

Explanation:

Market Value

500 x 180 = 90,000 0,7826 CS

100 x 225 = 25,000 0, 2174 Preferred

total 115,000

Issuance: 110,000

Preferred: 21.74% of 110,000 = 23,914

face value: 100 x100 10,000

additional paid-in 13,914

Common: 78.26% of 110,000 = 86,086

face value: 500 x 10 = 5,000

additional paid-in 81,086

If we can only determinate the common stock:

total issuance - common stock = preferred stock

110,000 - 190 x 500 = 110,000 - 95,000 = 15,000 preferred stock

additional paid-in CS: 110,000 - 5,000 = 105,000

additional paid-in PS: 15,000 - 10,000 = 5,000

5 0

3 years ago

Which of the following statements regarding an internal rate of return analysis is false?

gulaghasi [49]

Answer: Option D

Explanation: Internal rate of return ,denoted as IRR, is the rate at which the net present value of a capital investment is zero. It is the rate at which the cash flows of the investment are discounted back to calculate the present value.

While, required rate of return is that return which an investor expects to achieve over time from a capital project.

Thus, one would only select a capital project only if the NPV of a project is positive which can only happen when the return on investment, that is, IRR, is greater than cost of capital, that is, required rate of return.

4 0

3 years ago

Which of the following is consistent with the law of supply? A. The state of Washington has less apple regulation than Californ

GuDViN [60]

Answer:

D) A doubling of the price of salt led to 5 percent drop in the quantity of salt purchased.

Explanation:

Law of supply in economics says that when the price increases the supply too increases if other factors is is constant.

Therefore, among the given options the only option that is consistent with the law of supply is "A doubling of the price of salt led to a 5 percent drop in the quantity of salt purchased"

4 0

3 years ago