Asymmetric information and its relevance in medical care.

Question

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Answer 1

Question

Chapter 19, Problem 1QR

To determine

Asymmetric information and its relevance in medical care.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between the different countries. Thus, it involves the export of goods and services to the foreign countries as well as the import of goods from the foreign countries. The measures that restrict the imports from the foreign countries are known as the trade restrictions.

When there are trade restrictions, the import will decrease in the economy. As the import decreases, the availability of the product in the market will decrease. This causes the demand to become higher than the supply and the price to increase in the market. The second reason why the trade restrictions are not good includes the inefficiency created by the trade restrictions. The potential gains from the trade to the consumers are being eliminated when the trade is restricted. Third reason is that the trade restriction not only prevents the imports but also impacts the exports. Thus, the trade restriction also decreases the innovations and international competition of the domestic firms.

The reasons why the restrictions are good includes the protectionism which is the infant industry argument which is introduced to protect the new born industries to compete with the international products and grow to the full fledged production unit. Second argument includes the security argument which is the main one propounded by the capitalist countries. Preventing the imports of the foreign arms and ammunitions helps the economy to strengthen the security. Third reason is the prevention of dumping by the industrial countries. These are the three different arguments in favor of the trade restrictions.

Economics Concept Introduction

International trade: the international trade is the exchange of goods and services between the countries.

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Answer 2

Question

Chapter 19, Problem 1QR

To determine

Asymmetric information and its relevance in medical care.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between the different countries. Thus, it involves the export of goods and services to the foreign countries as well as the import of goods from the foreign countries. The measures that restrict the imports from the foreign countries are known as the trade restrictions.

When there are trade restrictions, the import will decrease in the economy. As the import decreases, the availability of the product in the market will decrease. This causes the demand to become higher than the supply and the price to increase in the market. The second reason why the trade restrictions are not good includes the inefficiency created by the trade restrictions. The potential gains from the trade to the consumers are being eliminated when the trade is restricted. Third reason is that the trade restriction not only prevents the imports but also impacts the exports. Thus, the trade restriction also decreases the innovations and international competition of the domestic firms.

The reasons why the restrictions are good includes the protectionism which is the infant industry argument which is introduced to protect the new born industries to compete with the international products and grow to the full fledged production unit. Second argument includes the security argument which is the main one propounded by the capitalist countries. Preventing the imports of the foreign arms and ammunitions helps the economy to strengthen the security. Third reason is the prevention of dumping by the industrial countries. These are the three different arguments in favor of the trade restrictions.

Economics Concept Introduction

International trade: the international trade is the exchange of goods and services between the countries.

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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

Chapter 19, Problem 1QR

To determine

Asymmetric information and its relevance in medical care.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between the different countries. Thus, it involves the export of goods and services to the foreign countries as well as the import of goods from the foreign countries. The measures that restrict the imports from the foreign countries are known as the trade restrictions.

When there are trade restrictions, the import will decrease in the economy. As the import decreases, the availability of the product in the market will decrease. This causes the demand to become higher than the supply and the price to increase in the market. The second reason why the trade restrictions are not good includes the inefficiency created by the trade restrictions. The potential gains from the trade to the consumers are being eliminated when the trade is restricted. Third reason is that the trade restriction not only prevents the imports but also impacts the exports. Thus, the trade restriction also decreases the innovations and international competition of the domestic firms.

The reasons why the restrictions are good includes the protectionism which is the infant industry argument which is introduced to protect the new born industries to compete with the international products and grow to the full fledged production unit. Second argument includes the security argument which is the main one propounded by the capitalist countries. Preventing the imports of the foreign arms and ammunitions helps the economy to strengthen the security. Third reason is the prevention of dumping by the industrial countries. These are the three different arguments in favor of the trade restrictions.

Economics Concept Introduction

International trade: the international trade is the exchange of goods and services between the countries.

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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

Chapter 19, Problem 1QR

To determine

Asymmetric information and its relevance in medical care.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between the different countries. Thus, it involves the export of goods and services to the foreign countries as well as the import of goods from the foreign countries. The measures that restrict the imports from the foreign countries are known as the trade restrictions.

When there are trade restrictions, the import will decrease in the economy. As the import decreases, the availability of the product in the market will decrease. This causes the demand to become higher than the supply and the price to increase in the market. The second reason why the trade restrictions are not good includes the inefficiency created by the trade restrictions. The potential gains from the trade to the consumers are being eliminated when the trade is restricted. Third reason is that the trade restriction not only prevents the imports but also impacts the exports. Thus, the trade restriction also decreases the innovations and international competition of the domestic firms.

The reasons why the restrictions are good includes the protectionism which is the infant industry argument which is introduced to protect the new born industries to compete with the international products and grow to the full fledged production unit. Second argument includes the security argument which is the main one propounded by the capitalist countries. Preventing the imports of the foreign arms and ammunitions helps the economy to strengthen the security. Third reason is the prevention of dumping by the industrial countries. These are the three different arguments in favor of the trade restrictions.

Economics Concept Introduction

International trade: the international trade is the exchange of goods and services between the countries.

Want to see more full solutions like this?

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

Answer 5

Chapter 19, Problem 1QR

To determine

Asymmetric information and its relevance in medical care.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between the different countries. Thus, it involves the export of goods and services to the foreign countries as well as the import of goods from the foreign countries. The measures that restrict the imports from the foreign countries are known as the trade restrictions.

When there are trade restrictions, the import will decrease in the economy. As the import decreases, the availability of the product in the market will decrease. This causes the demand to become higher than the supply and the price to increase in the market. The second reason why the trade restrictions are not good includes the inefficiency created by the trade restrictions. The potential gains from the trade to the consumers are being eliminated when the trade is restricted. Third reason is that the trade restriction not only prevents the imports but also impacts the exports. Thus, the trade restriction also decreases the innovations and international competition of the domestic firms.

The reasons why the restrictions are good includes the protectionism which is the infant industry argument which is introduced to protect the new born industries to compete with the international products and grow to the full fledged production unit. Second argument includes the security argument which is the main one propounded by the capitalist countries. Preventing the imports of the foreign arms and ammunitions helps the economy to strengthen the security. Third reason is the prevention of dumping by the industrial countries. These are the three different arguments in favor of the trade restrictions.

Economics Concept Introduction

International trade: the international trade is the exchange of goods and services between the countries.

Answer 6

Chapter 19, Problem 1QR

To determine

Asymmetric information and its relevance in medical care.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between the different countries. Thus, it involves the export of goods and services to the foreign countries as well as the import of goods from the foreign countries. The measures that restrict the imports from the foreign countries are known as the trade restrictions.

When there are trade restrictions, the import will decrease in the economy. As the import decreases, the availability of the product in the market will decrease. This causes the demand to become higher than the supply and the price to increase in the market. The second reason why the trade restrictions are not good includes the inefficiency created by the trade restrictions. The potential gains from the trade to the consumers are being eliminated when the trade is restricted. Third reason is that the trade restriction not only prevents the imports but also impacts the exports. Thus, the trade restriction also decreases the innovations and international competition of the domestic firms.

The reasons why the restrictions are good includes the protectionism which is the infant industry argument which is introduced to protect the new born industries to compete with the international products and grow to the full fledged production unit. Second argument includes the security argument which is the main one propounded by the capitalist countries. Preventing the imports of the foreign arms and ammunitions helps the economy to strengthen the security. Third reason is the prevention of dumping by the industrial countries. These are the three different arguments in favor of the trade restrictions.

Economics Concept Introduction

International trade: the international trade is the exchange of goods and services between the countries.

Answer 7

Chapter 19, Problem 1QR

To determine

Asymmetric information and its relevance in medical care.

Answer 8

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between the different countries. Thus, it involves the export of goods and services to the foreign countries as well as the import of goods from the foreign countries. The measures that restrict the imports from the foreign countries are known as the trade restrictions.

When there are trade restrictions, the import will decrease in the economy. As the import decreases, the availability of the product in the market will decrease. This causes the demand to become higher than the supply and the price to increase in the market. The second reason why the trade restrictions are not good includes the inefficiency created by the trade restrictions. The potential gains from the trade to the consumers are being eliminated when the trade is restricted. Third reason is that the trade restriction not only prevents the imports but also impacts the exports. Thus, the trade restriction also decreases the innovations and international competition of the domestic firms.

The reasons why the restrictions are good includes the protectionism which is the infant industry argument which is introduced to protect the new born industries to compete with the international products and grow to the full fledged production unit. Second argument includes the security argument which is the main one propounded by the capitalist countries. Preventing the imports of the foreign arms and ammunitions helps the economy to strengthen the security. Third reason is the prevention of dumping by the industrial countries. These are the three different arguments in favor of the trade restrictions.