This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the source of the gains from trade? What will be an ideal ... (Read 20 times)

mp14

  • Hero Member
  • *****
  • Posts: 534
on: Jun 29, 2018
What is the source of the gains from trade?
 
  What will be an ideal response?

Question 2

What is the difference between directly holding stock in a company like Apple and investing in a mutual fund that holds Apple stock?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

vickyvicksss

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jun 29, 2018
Answer to Question 1

As long as people have different opportunity costs of producing goods or services, total output is higher with specialization and trade than if each individual produced goods and services under self-sufficiency. This increase in output is the gains from trade.

Answer to Question 2

 Some investors purchase Apple shares directly and hold them in a brokerage account.
 Most investors buy pre-mixed pools of assets, called mutual funds.A mutual fund is a pool of money that is collected from many investors. Mutual funds typically invest in hundreds of stocks, bonds, and/or short-term money market instruments.
A-head: INVESTMENT ACCOUNTS
Concept: Brokerage accounts


mp14

  • Member
  • Posts: 534
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

covalentbond

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Development encompasses both gains and losses. Sometimes a health crisis (loss) can result in a heal Development encompasses both gains and losses. Sometimes a health crisis (loss) can result in a heal
A second jetliner approaches the south tower of the World Trade Center on September 11, 2001. The no A second jetliner approaches the south tower of the World Trade Center on September 11, 2001. The no
In The Gross Clinic (1875), by Thomas Eakins, Professor Samuel Gross’s team of surgeons cuts through In The Gross Clinic (1875), by Thomas Eakins, Professor Samuel Gross’s team of surgeons cuts through
Electrophoresis gel in a densitometer. (a) The green light from the slit light source is visible ... Electrophoresis gel in a densitometer. (a) The green light from the slit light source is visible ...
Fatty fish, such as salmon, are an excellent source of omega-3 fatty acids Fatty fish, such as salmon, are an excellent source of omega-3 fatty acids
Macaroni and cheese provides a double source of riboflavin from the pasta and the cheese Macaroni and cheese provides a double source of riboflavin from the pasta and the cheese
Video: Renal Failure

For a complete list of videos, visit our video library