What happens to overall living standards when countries trade with other countries?
What will be an ideal response?
When countries specialize in producing goods for which they have a comparative advantage and then trade with the rest of the world, then their living standards tend to rise as people can have more of different goods than before.
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If a fall in investment demand of 100 units causes equilibrium income to fall by 150 units in the simple Keynesian model, then the marginal propensity to save must be
a. .25. b. 1.5. c. .5. d. 1/3. e. 2/3.
Refer to the accompanying figure. Moving from demand curve D1 to demand curve D2 illustrates a(n):
A. decrease in demand. B. decrease in quantity demanded. C. increase in demand. D. increase in quantity demanded.
On average, since 1900 U.S. output has grown by roughly ________ percent per year.
A. 9 B. 1 C. 3 D. 6
A book that sells new for $125 will typically sell used for around
A. $50. B. $100. C. $25. D. $75.