Briefly explain how specialization and trade can benefit nations
What will be an ideal response?
When nations specialize in what they have a comparative advantage and then trade with other nations, their production possibilities curves move outward, which yields greater production and consumption possibilities.
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Which of the following factors will NOT increase economic development?
A) establishing a system of property rights B) increasing the amount of protectionism C) increasing the amount of education in the population D) creative destruction where old jobs, companies and industries are destroyed
Which of the following statements is true of free riding?
A) Free riding is easy to detect and punish. B) Free riding reduces with social pressure. C) Free riding is not affected by incentives. D) Free riding does not impose a cost on society.