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alina1380 [7]
3 years ago
9

The law of comparative advantage explains why a. specialization and exchange will make it possible for trading partners to expan

d their joint output. b. there will be an inverse relationship between the price of a product and the quantity of it that will be demanded. c. larger firms will have lower per unit costs than smaller firms. d. an increase in the price of a good will lead to an expansion in the quantity supplied by business firms.
Business
1 answer:
AleksandrR [38]3 years ago
7 0

Answer:

Option (a) is correct.

Explanation:

The law of comparative advantage states that a country is producing and exporting a good in which it has a comparative advantage and importing a good in which it has a comparative disadvantage.

Therefore, this will make the countries more specialized and there is an exchange of goods among the trading nations.

Each country is then specialized in the production of a good in which it has a comparative advantage and hence, the joint output of the trading nations increases.

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Suppose that United States produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week. Suppose that Pakistan produc
Darya [45]

Answer:

1. 1,000 bushels of wheat

2.  d) A situation where one country does not engage in trade with other

Explanation:

1 & 2. Autarky refers to a situation where a country does not engage in trade with other countries but rather relies on its own production capacities to feed the consumption in the country.

Autarkies in the current world are not a thing because countries trade with each other. Even North Korea trades with Russia, China and others.

In an Autarky situation therefore, the United States would only be able to consume the wheat that it produces itself which according to the question is 1,000 bushels of wheat.

8 0
3 years ago
Read 2 more answers
A demand function for step stools manufactured by U-Step is q = -720p + 20,500.
meriva

Answer:

$140,420

Explanation:

The demand function is q = -720p + 20,500.

The price is $17

q = -720 ($17) + 20500 = 8260

The quantity sold is 8260

Revenue = price × quantity sold

= $17 × 8260 = $140,420

5 0
3 years ago
In a given year, Jennifer earns $50,000 and spends $40,000. During the same period, Stcve earns $30,000 and spends $27,000. If J
elena55 [62]

Answer:

The sales tax is regressive with respect to income

Explanation:

sales tax by Jennifer = 0.1*30000

                                   = 3000

tax/income = 3000/50000

                   = 6%

sales tax by steve = 0.1*27000

                                   = 2700

tax/income = 2700/30000

                   = 9%

The tax increases with decrease in income, it indeed is regressive on the whole.

Therefore, The sales tax is regressive with respect to income

6 0
3 years ago
High inflation in the United States would most likely have a negative impact on
Alexxx [7]

Answer:

The correct answer is option A.

Explanation:

High inflation will cause an adverse effect on the exchange rate. However, the low inflation rate does not have a positive effect on the value of currency and exchange.  

Inflation rate affects the rate of interest which has an effect on the exchange rate. The relationship between the interest rate and inflation is complex and difficult to manage.

Lower interest rates are likely to lower the cost of borrowing. As a result, there is an increase in investment and production. This increases aggregate demand and thus price level.  

But lower interest discourages foreign investment, the demand for domestic currency falls.This shift the currency demand curve to left decreasing the interest rate.

5 0
3 years ago
¿Qué entiende por gestión publica y gestión institucional?
Anit [1.1K]
Gestión publica es con gente normal pero gestión institucional es con gente de negocios
7 0
2 years ago
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