Reasons as to why international trade occurs and meaning of deficit in the merchandise trade balance Concept Introduction: International Trade: The exchange of capital, goods and services beyond the national boundaries of the country is termed as International Trade. Merchandise Trade Balance: It is the difference between the total imports and exports of the goods of the country. Opportunity Cost : It is the cost in terms of the forgone benefit that a person could have received by choosing an alternative course of action.

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Case Study: The Impact of Ebola on Tax Revenue in the DRC Background: The Democratic Republic of the Congo has experienced mulitiple outbreaks, with the 2018-2020 outbreak being one of the most severe. The outbreak had profound effects on public health, the economy and government operations. The DRC's economy already fragile due to policital instability and conflict, faced additional stain as the Ebola virus spread across several provinces. Economic disruption: The Ebola outbreak led to significant disruptions in the affected regions. Businesses were forced to close or reduce operations due to quarantine measures and the fear of contagion. this resulted in a sharp decline in economic activities, particularly in sectors such as agriculute, mining and trade. reduced consumer spending and interruptions in supply chains further exacerbated the economic downturn. Impact on Tax Revenue: the economic…

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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 3, Problem 13P

To determine

Reasons as to why international trade occurs and meaning of deficit in the merchandise trade balance

Concept Introduction:

International Trade: The exchange of capital, goods and services beyond the national boundaries of the country is termed as International Trade.

Merchandise Trade Balance: It is the difference between the total imports and exports of the goods of the country.

Opportunity Cost: It is the cost in terms of the forgone benefit that a person could have received by choosing an alternative course of action.

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Case Study: The Impact of Ebola on Tax Revenue in the DRC Background: The Democratic Republic of the Congo has experienced mulitiple outbreaks, with the 2018-2020 outbreak being one of the most severe. The outbreak had profound effects on public health, the economy and government operations. The DRC's economy already fragile due to policital instability and conflict, faced additional stain as the Ebola virus spread across several provinces. Economic disruption: The Ebola outbreak led to significant disruptions in the affected regions. Businesses were forced to close or reduce operations due to quarantine measures and the fear of contagion. this resulted in a sharp decline in economic activities, particularly in sectors such as agriculute, mining and trade. reduced consumer spending and interruptions in supply chains further exacerbated the economic downturn. Impact on Tax Revenue: the economic…

Key shortcomings of the Human Capital approach to measuring the monetary value of benefits of new treatments are that it Will generate lower benefits for male lives on average Will generate higher benefits for female lives on average Will tend to OVERVALUE improvements in quality of life Will tend to UNDERVALUE improved survival for people out of labour force

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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 3, Problem 13P

To determine

Reasons as to why international trade occurs and meaning of deficit in the merchandise trade balance

Concept Introduction:

International Trade: The exchange of capital, goods and services beyond the national boundaries of the country is termed as International Trade.

Merchandise Trade Balance: It is the difference between the total imports and exports of the goods of the country.

Opportunity Cost: It is the cost in terms of the forgone benefit that a person could have received by choosing an alternative course of action.

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Answer 3

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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 3, Problem 13P

To determine

Reasons as to why international trade occurs and meaning of deficit in the merchandise trade balance

Concept Introduction:

International Trade: The exchange of capital, goods and services beyond the national boundaries of the country is termed as International Trade.

Merchandise Trade Balance: It is the difference between the total imports and exports of the goods of the country.

Opportunity Cost: It is the cost in terms of the forgone benefit that a person could have received by choosing an alternative course of action.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

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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 3, Problem 13P

To determine