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Comparative advantage : explained
Why did Ricardo think that international trade was based on comparative advantage while internal (domestic) trade was based on absolute advantage?
Illustrate what conditions is it possible to increase production of one good without decreasing production of another
Assume the problems of maximizing solves the first problem if and only if it also solves the second problem.
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
Between your answers to parts b and c, which prices/capacity are best applied from a social welfare perspective? Why?
Elucidate why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly.
You are the adviser to a Benevolent Social Planner. GDP is falling also the economy is in a recession.
Early Classical economists found the subsiquent diamond/water paradox perplexing.
Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? Compute the value of the price index for GDP for 2005 by using 2004 as the base year. By what percent did prices increase?
social problem where free marketplace are not allowed to function and describe how free market features could be introduced to help alleviate the problem.
you will be challenged to show one or more of the criteria which you believe should be improved at your place of employment.
Elucidate whether current economic conditions are more consistent with the Keynesian or classical economic theories.
Illustrate which national financial policy programs are best for addressing the problems in the U.S. economy
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