Cite three important reasons why nations trade.
What will be an ideal response?
First, specialization and trade among nations is advantageous because the world’s resources are not evenly distributed. To obtain resources or products that a nation does not have but that are desired by society requires trade with other nations. Second, the efficient production of different commodities necessitates different methods and combinations of resources. These different methods and combinations can be obtained through trade. Third, products vary in quality and in other ways. People prefer this variety, which often can only be obtained through imports.
You might also like to view...
Use the following table to answer the question below.Giovanni's Production Possibilities ScheduleJorge's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn02400480301802036060120402409060601201200800Giovanni's opportunity cost of producing 1 pound of green beans is ________ pound(s) of corn. Jorge's opportunity cost of producing 1 pound of green beans is ________ pound(s) of corn.
A. 1/6, 1/2 B. 6,2 C. 1/2,1/6 D. 2,6
The National Labor Relations Act of 1935 and the Fair Labor Standards Act of 1938 forced employers to
(a) negotiate with unionized labor. (b) keep hours at a minimum. (c) pay maximum wages. (d) do all of the above.
Government failure will likely arise if
A. Government officials attempt to maximize their own utility. B. There are no valuation problems. C. The free-rider problem occurs. D. Public services have reliable market prices.
If the demand for sardines increases as income decreases, sardines are a(n)
A. normal good. B. complementary good. C. substitute good. D. inferior good.