Answer: the gains from trade; protectionism
Explanation:
The common belief among economists is that it is better to embrace the gains from trade, and then deal with the costs and trade offs with other policy tools, than it is to engage in protectionism.
Economists believe that when countries engage in trade together, it brings about increase in the world's output, better innovation and better product quality hence, they do not really support protectionism.
Answer:
Correct option is <u>rises with inflation, leading to an improved allocation of resources
</u>
Explanation:
Relative price variability has a direct relation with Inflation and an increase in Inflation leads to increased relative price variability and effective resources allocation.
Answer:
The correct answer is the option D: is equally price inelastic in both the short run an long run as there are not many substitutes for crude oil.
Explanation:
To begin with, the concept called <em>''price elasticity of demand''</em> in the field of economic, refers to the variation that happens in the quantity demanded of a product when its price changes. Moreover, this theory establishes that goods could be either price elastic or price inelastic. In addition to that, the products that are price elastic are the ones whose quantity demanded changes when a variation in its price occur, meanwhile <u>the products that are price inelastic are those whose quantity demanded do not changes when a variation in its price happen</u>.
In conclusion, the demand for crude oil is equally price inelastic in both the short and long run as there are not many substitutes for crude oil and <u>therefore the people will still continue to consume it no matter how many changes in its price will happen, due to its uniqueness.</u>
Answer:
B. a dividend yield which is less than that of the average firm
Explanation:
The P/E ratio can be regarded as ratio that give analysis of value that market is willing to pay at the moment with regards to the earnings in past or future. When the P/E ratio is high then
stock's price is considered high compare to the earnings, a low P/E ratio can be interpreted as having low stock price with respect to the earnings. Stocks that has its P/E ratios below 15 are usually regarded as been cheap , those with ratio above 18 are considered expensive. It should be noted that, A company whose stock is selling at a P/E ratio greater than the P/E ratio of a market index most likely has a dividend yield which is less than that of the average firm.
