If the geography hypothesis holds, what will be its implication on poorer nations that have unfavorable geographic conditions?
What will be an ideal response?
The geography hypothesis states that the geography of a nation is the fundamental cause of prosperity or its absence. Since the geography of a nation does not change over time, nations that have unfavorable geographic conditions cannot expect to improve their living standards. They are permanently disadvantaged and cannot be expected to catch up with the rest of the world.
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Given the scenario described, if the market price of hammers decreased from $17 to $12:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. producer participation in the market would increase. B. producer participation in the market would decrease. C. producer participation in the market would not be affected. D. total producer surplus would remain unchanged.
What is an externality?
What will be an ideal response?