As an important reason of PPP failure, many scholars suggest the existence of nontradables. Explain why international differences in the prices of nontradables may cause overall price level differences between rich and poor countries.

Q: The parliament of Ghana is debating whether import substitution should take the form of quotas or…

A: In an economy, two widely used import substitution policies are tariffs and imports quota.

Q: Infant Industry protection is a key solution for the growth of industrialization of developing…

A: Protectionism for an economy can be understood as an attempt in developing the new manufacturing…

Q: Founded in 1975, the  Group of Seven (G7) is an inter-governmental political forum consisting of…

A: Group of Twenty, is a multilateral forum made up of 19 countries and the EU. It focuses on…

Q: Explain the rationale underlying PPP theory.

A: An exchange rate refers to the value at which one currency can be exchanged for another currency. It…

Q: If an economy begins to use its resources more effeciently, it will move further away from it PPf

A: Answer in step 2

Q: List down the main ingredients or raw materials in manufacturing the Ferrari sports car.

A: Introduction Ferrari is one of the luxury cars which is manufactured in Maranello. Maranello is in…

Q: Give only typing answer with explanation and conclusion PPC is concave to the point of origin…

A: Manufacturing and marketing choices in economics include determining the optimal quantity of output…

Q: Consider the crude oil market in the mid-1980s in the United States. Equilibrium price was $22.67…

A: It is basic concept of economics that when the quantity supplied is increased  at cheaper price then…