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.
Answer:
the real insterest rate during this period was -1.9%
Explanation:
for this case is necessary first make the calculation for the inflation in the period given
so we have that...
Inflation = (198.17 - 184)*100/184 = 7.7%
Real Interest rate = Nominal interest rate - inflation = 5.8 - 7.7 = -1.9%
Answer:
The correct answer is letter "B": the best strategy to pick, no matter which moves are chosen by the other player.
Explanation:
Game theory is used in mathematics and economy to explain how individuals make their choices. All participants in a game use some sort of strategy that allows them to have chances of winning the game. Under such circumstances, a dominant strategy refers to one specific approach that leads to absolute best effects regardless of the choices that the other participants may select.
However, sometimes there are no dominant strategies in a game. Therefore, participants must adapt to the moves of other players to find a way to outstand.