Importance of international trade for economy.

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Answer 1

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Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 10, Problem 1QE

To determine

Importance of international trade for economy.

Expert Solution & Answer

Explanation of Solution

International trade is the exchange of goods and services between the countries. The international trade is very important for an economy as the international trade is based on the comparative advantage which states that the economy should focus on the production of goods and services in which the economy has lower opportunity cost of production. The economies engage in trade with other economies to get the products in which it has comparative disadvantage.

In case of the US economy, the trade is not much important for the economy. This is because the US economy produces most of the goods and services required for the economy. Thus, the international trade shares for goods and services in the US economy are relatively small when compared to other economies. Thus, the trade is less important to the US economy and thus, the trade policies are less important.

Economics Concept Introduction

International trade: International trade is the exchange of goods and services between the international borders. Thus, the sellers and buyers will be different countries under the international trade.

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Labor Market Data Price $5 $10 $15 $20 $25 3,000,000 6,000,000 9,000,000 12,000,000 15,000,000 Qd 15,000,000 12,000,000 9,000,000 6,000,000 3,000,000 Price $30 $25 $20 $15 $10 $5 + +- x- 3 6 Do + + F 9 12 15 Quantity (In millions) Area of a triangle = 1/2* base *height Market Efficiency & Total Surplus Worth Publishers SCENARIO: The state government is considering raising the minimum wage from $15 per hour to $20 per hour over the next 3 years. As an economic advisor to the governor, you have been asked to provide a recommendation on whether the minimum wage should be increased based on economic theory. Consider the labor market data provided. Prepare a brief report that: 1. Explains whether the labor market is currently efficient at the equilibrium wage of $15 per hour. How would you know? At equilibrium, what (dollar amount) is the Total Surplus this market provides? Show your rationale with numbers. 2. Analyzes the impact on total surplus in the market if the minimum wage is raised…

Answer 2

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 10, Problem 1QE

To determine

Importance of international trade for economy.

Expert Solution & Answer

Explanation of Solution

International trade is the exchange of goods and services between the countries. The international trade is very important for an economy as the international trade is based on the comparative advantage which states that the economy should focus on the production of goods and services in which the economy has lower opportunity cost of production. The economies engage in trade with other economies to get the products in which it has comparative disadvantage.

In case of the US economy, the trade is not much important for the economy. This is because the US economy produces most of the goods and services required for the economy. Thus, the international trade shares for goods and services in the US economy are relatively small when compared to other economies. Thus, the trade is less important to the US economy and thus, the trade policies are less important.

Economics Concept Introduction

International trade: International trade is the exchange of goods and services between the international borders. Thus, the sellers and buyers will be different countries under the international trade.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 10, Problem 1QE

To determine

Importance of international trade for economy.

Expert Solution & Answer

Explanation of Solution

International trade is the exchange of goods and services between the countries. The international trade is very important for an economy as the international trade is based on the comparative advantage which states that the economy should focus on the production of goods and services in which the economy has lower opportunity cost of production. The economies engage in trade with other economies to get the products in which it has comparative disadvantage.

In case of the US economy, the trade is not much important for the economy. This is because the US economy produces most of the goods and services required for the economy. Thus, the international trade shares for goods and services in the US economy are relatively small when compared to other economies. Thus, the trade is less important to the US economy and thus, the trade policies are less important.

Economics Concept Introduction

International trade: International trade is the exchange of goods and services between the international borders. Thus, the sellers and buyers will be different countries under the international trade.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 10, Problem 1QE

To determine

Importance of international trade for economy.

Expert Solution & Answer

Explanation of Solution

International trade is the exchange of goods and services between the countries. The international trade is very important for an economy as the international trade is based on the comparative advantage which states that the economy should focus on the production of goods and services in which the economy has lower opportunity cost of production. The economies engage in trade with other economies to get the products in which it has comparative disadvantage.

In case of the US economy, the trade is not much important for the economy. This is because the US economy produces most of the goods and services required for the economy. Thus, the international trade shares for goods and services in the US economy are relatively small when compared to other economies. Thus, the trade is less important to the US economy and thus, the trade policies are less important.

Economics Concept Introduction

International trade: International trade is the exchange of goods and services between the international borders. Thus, the sellers and buyers will be different countries under the international trade.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 1QE

To determine

Importance of international trade for economy.

Expert Solution & Answer

Explanation of Solution

International trade is the exchange of goods and services between the countries. The international trade is very important for an economy as the international trade is based on the comparative advantage which states that the economy should focus on the production of goods and services in which the economy has lower opportunity cost of production. The economies engage in trade with other economies to get the products in which it has comparative disadvantage.

In case of the US economy, the trade is not much important for the economy. This is because the US economy produces most of the goods and services required for the economy. Thus, the international trade shares for goods and services in the US economy are relatively small when compared to other economies. Thus, the trade is less important to the US economy and thus, the trade policies are less important.

Economics Concept Introduction

International trade: International trade is the exchange of goods and services between the international borders. Thus, the sellers and buyers will be different countries under the international trade.

Answer 6

Chapter 10, Problem 1QE

To determine

Importance of international trade for economy.

Expert Solution & Answer

Explanation of Solution

International trade is the exchange of goods and services between the countries. The international trade is very important for an economy as the international trade is based on the comparative advantage which states that the economy should focus on the production of goods and services in which the economy has lower opportunity cost of production. The economies engage in trade with other economies to get the products in which it has comparative disadvantage.

In case of the US economy, the trade is not much important for the economy. This is because the US economy produces most of the goods and services required for the economy. Thus, the international trade shares for goods and services in the US economy are relatively small when compared to other economies. Thus, the trade is less important to the US economy and thus, the trade policies are less important.

Economics Concept Introduction

International trade: International trade is the exchange of goods and services between the international borders. Thus, the sellers and buyers will be different countries under the international trade.

Answer 7

Chapter 10, Problem 1QE

To determine

Importance of international trade for economy.

Answer 8

Expert Solution & Answer

Explanation of Solution

International trade is the exchange of goods and services between the countries. The international trade is very important for an economy as the international trade is based on the comparative advantage which states that the economy should focus on the production of goods and services in which the economy has lower opportunity cost of production. The economies engage in trade with other economies to get the products in which it has comparative disadvantage.

In case of the US economy, the trade is not much important for the economy. This is because the US economy produces most of the goods and services required for the economy. Thus, the international trade shares for goods and services in the US economy are relatively small when compared to other economies. Thus, the trade is less important to the US economy and thus, the trade policies are less important.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

International trade: International trade is the exchange of goods and services between the international borders. Thus, the sellers and buyers will be different countries under the international trade.

Answer 12

Ch. 10.1 - Prob. 1Q Ch. 10.1 - Prob. 2Q Ch. 10.1 - Prob. 3Q Ch. 10.1 - Prob. 4Q Ch. 10.1 - Prob. 5Q Ch. 10.1 - Prob. 6Q Ch. 10.1 - Prob. 7Q Ch. 10.1 - Prob. 8Q Ch. 10.1 - Prob. 9Q Ch. 10.1 - Prob. 10Q

Importance of international trade for economy.

Importance of international trade for economy.

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