People in the U.S. state of Iowa eat both corn and potatoes. It is technically possible for farmers to grow both corn and potato
es in Iowa, yet almost no farmers grow potatoes. Instead, every year, Iowa exports corn and imports potatoes from the U.S. state of Idaho, where farmers specialize in potatoes. Which of the following principles of economic interaction best describes this scenario? A) When markets do not achieve efficiency, government intervention can improve overall welfare.
B) Trade can make everyone better off.
C) There is a tradeoff between equity and efficiency.
D) All costs are opportunity costs.
Answer: The correct answer is "B) Trade can make everyone better off.".
Explanation: The principle that says that Commerce can make everyone better is the one that best describes this scenario.
This happens because each state in question will specialize in what is most efficient. At the same time, the rest of the products in which they are most inefficient in terms of production will be imported.
a. Susan purchases stock in Pherk, a pharmaceutical company. -- Investment
b. Megan buys new bulldozers for her construction firm. -- Investment
c. Larry purchases a certificate of deposit at his bank. -- Saving
d. Raphael takes out a mortgage for a new home in Detroit. -- Saving
The investment is a what is spent on the goods and services that are not consumed but are durable and the savings are what is left over after the national incomes are spent on the consumption of the goods and the services and an purchase of stock.
the buying of the construction firm is a type of investment and the purchase of a certificate of deposit and mortgage for a new home is the type of the saving which is for the future use.
A community college is a type of educational institution. The term can have different meanings in different countries: many community colleges have an "open enrollment" for students who have graduated from high school