Final Exam Practice Questions Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. Also assume that Germany has an absolute advantage in both fish and cars. If these two countries specialize and trade so as to maximize the benefits of specialization and trade‚ then |a. |the two countries’ combined output of both goods will be higher than
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1- Describe Adam Smith’s concept of absolute advantage and David Ricardo’s concept of Comparative Advantages. Are those concepts still useful in the 21st century’s Business environment? The concept of absolute advantage is the ability of a country to use less resources (inputs) to produce goods/products than any other country. For Smith‚ a country should specialize in the production of the product for which it has an absolute advantage and should buy at lower price others goods from other countries
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vnanet.vn/Economy/214097/software-industry-challenged-by-rising-human-resource-costs-.html Software industry challenged by rising human resource costs HCM CITY — Rising costs for human resources have weakened Viet Nam’s chief competitive advantage in the software industry. In the past‚ cheap labour was seen as the country’s chief competitive advantage in making international-standard software‚ but that advantage is declining. The pool of employees for the software industry is still rather small
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The Absolute Advantage concept is generally attributed to Adam Smith for his 1776 publication An Inquiry into the Nature and Causes of the Wealth of Nations in which he countered mercantilist ideas. Adam Smith argued that it was impossible for all nations to become rich at the same time by following mercantilism because the export of one nation is another nation’s import and instead stated that all nations would gain simultaneously if they practiced free trade and specialized in accordance with their
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Fantasy Football In the “Fantasy Football” article Isaac Morehouse explains opportunity cost and comparative advantage by providing an illustration into everyday life. He provides the example of the fantasy football commissioner’s veto to economics in everyday life. He explain how sometimes you need to think “outside of the box” if you will. I would assign this essay a solid B. I feel this article deserves a B because it is a good example for me to relate to however‚ if you don’t understand anything
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THE UNIVERSITY OF HULL SCHOOL OF POLITICS‚ PHILOSOPHY AND INTERNATION STUDIES being a dissertation submitted for the Degree of Politics To what extent were private rented sector policies in Britain and Germany between 1914 and the early 1970s consistent with the characteristics set by Hall and Soskice’s ‘Varieties of Capitalist’ typology? A meso-level empirical comparison of predominantly rent control and regulation in the private rented sector between 1914 and the early 1970s in Britain and Germany
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What are the advantages and disadvantages of Agile Software Engineering? One mooted solution to project management issues is Agile Software Engineering. Agile software engineering was devised‚ in the early 1990’s‚ as a counter to the then-prevalent preference for huge‚ carefully-planned and expertly orchestrated grand projects. As Alistair Cockburn has noted‚ "the 1990’s saw some of the most bloated‚ over-organised attempts at problem-solving imaginable‚ whereas agile software engineering came in
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unemployment‚ the problem of illiteracy‚ the problem of population‚ so on and so forth. The problem of rising prices is one of the most important problems that Indian is facing now. This problem is two-fold to check the rising prices and‚ if possible‚ to bring the prices down. The economists are of opinion that growing economy of the country has given rise to the rising prices. Such economy causes inflation. In inflation purchasing power runs ahead of purchasable goods. In other words‚ in a growing country
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Indian Textile Industry The textile industry is the largest industry of modern India. It accounts for over 20 percent of industrial production and is closely linked with the agricultural and rural economy. It is the single largest employer in the industrial sector employing about 38 million people. If employment in allied sectors like ginning‚ agriculture‚ pressing‚ cotton trade‚ jute‚ etc. are added then the total employment is estimated at 93 million. The net foreign exchange earnings
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supply curve for goods to the left. The price of the protected good rises and the quantity available to consumers falls. Protectionist policies reduce the quantities of foreign goods and services supplied to the country that imposes the restriction. As a result‚ such policies shift the supply curve to the left for the good or service whose imports are restricted. In the case shown‚ the supply curve shifts to S2‚ the equilibrium price rises to P2‚ and the equilibrium quantity falls to Q2. One of the most
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