Nations specialize according to their comparative advantage get benefited outside its PPC.
Specialization based on comparative advantage leads to more effective use of global resources. Both countries will have access to larger quantities of both goods.
Also foreign commerce stimulates the production of various commodities in different nations and leads to specializations.
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Answer:A. Less than $1000.00billion
Explanation:An increase in total income will increase agegrate demands but not to the level of the increase in income nor more than it due to the marginal propensity to save.
That statement is false
The market could be considered as efficient is the total products that the sellers supplied in the market is suitable to what the buyers need.
If the commodity is had by both sellers and buyers, there is no need for the buyers to spend money to obtain that commodity, which will lead to market inefficiency.
Answer:
The answer is: D) The shop makes a substantial profit from pastries and other food bought by the coffee drinkers.
Explanation:
Once I saw this strategy being used by a chain of coffee shops that operated in large superstores. It was really successful, not only because they had a lot of clients. Most of the clients wouldn´t just buy coffee, they also bought pastries and sandwiches. This strategy was so successful that the coffee shop decided to offer free coffee to everyone. Even though you could just ask for a free coffee (after waiting 20 minutes in line), no one just got free coffee. Everyone bought something else. You could hear the other customers saying that since the coffee was free they were going to buy something.