Briefly differentiate between constant returns to specialization and diminishing returns to specialization.
What will be an ideal response?
Answer: Assuming constant returns to specialization is just.. unrealistic. We don't have an indefinite amount of any resource, and assuming that you do is a bad decision in the long-term. A diminishing return to specialization assumes that your resources are finite, and that one day it may be a better economical decision to import a good that you used to export. Considering things from this perspective allows a country to make better strategic decisions in terms of its allocation of resources, and future trade capabilities.
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An offer to purchase real property was signed by a prospective buyer on October 2. The terms of the offer allowed five days for acceptance by the seller. Because of an illness in the seller's family, the seller did not accept the offer until October 10. Which of the following statements is correct:
A: The buyer may demand the return of his deposit; B: The buyer must continue with the purchase because he did not withdraw his offer prior to acceptance; C: If the buyer does not complete the purchase, the seller is entitled to the deposit; D: If the buyer does not complete the purchase, the seller and the broker will each be entitled to one-half of the deposit.
Returns on stocks can come in the form of capital appreciation
Indicate whether this statement is true or false.