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

Author Question: What are the implications for economic growth for countries specializing in capital goods rather ... (Read 99 times)

BrownTown3

  • Hero Member
  • *****
  • Posts: 564
What are the implications for economic growth for countries specializing in capital goods rather than consumer goods? What is the opportunity cost of this decision?
 
  What will be an ideal response?

Question 2

Refer to Figure 4-3. What area represents consumer surplus at P2?
 
  A) A + B B) A + B + D + E C) B + C D) A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Benayers

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

All else equal, countries that specialize in capital goods will likely grow more than those that specialize in consumer goods, because specializing in capital goods will allow for more goods to be produced in the future. The opportunity cost of this decision is that the economy will experience a lower standard of living in the present than they would otherwise.

Answer to Question 2

D




BrownTown3

  • Member
  • Posts: 564
Reply 2 on: Jun 29, 2018
:D TYSM


gcook

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Excellent

 

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

For a complete list of videos, visit our video library