This topic contains a solution. Click here to go to the answer

Author Question: Why does it make sense for economies to specialize according to comparative advantage and trade? ... (Read 79 times)

abern

  • Hero Member
  • *****
  • Posts: 533
Why does it make sense for economies to specialize according to comparative advantage and trade?
 
  What will be an ideal response?

Question 2

Unions support minimum wage laws because an increase in the minimum wage
 
  A) increases the supply of union labor.
  B) decreases the supply of union labor.
  C) increases the demand for union labor.
  D) decreases the demand for union labor.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Zebsrer

  • Sr. Member
  • ****
  • Posts: 284
Answer to Question 1

A person has a comparative advantage in an activity that they can perform at a lower opportunity cost than other people. By participating in the activity in which they have a comparative advantage, less is given up. Because resources are scarce, more can be produced with available resources when less is given up. And, by trading people can consume more than just what they produce.

Answer to Question 2

C





 

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

For a complete list of videos, visit our video library