Use national demand and supply curves to show (a) the incentives for trade to begin between nations. (b) the effect on the likely pattern of trade of a change in technology in A that causes A's national supply curve to shift out
(c) the effect on the likely pattern of trade of a change in tastes in B in favor of good S.
(a) Trade is likely to occur along the lines of comparative advantage.
(b) An increase in supply of S in A will cause A to export more S (import less S).
(c) An increase in demand for S in B will cause B to import more S (export less S).
Economics
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If the security guard knows that the shoplifter has been caught before, his best response would be
a. Being watchful b. Sleeping on the job c. Run d. Hide
Economics
Social cost is: a. the sum of the cost of externality and private cost
b. the difference between the cost of externality and private cost. c. the product of the cost of externality and private cost. d. the ratio of the cost of externality and private cost.
Economics