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Occurs when a nation can produce more of a product with the same of less resources. Study with Quizlet and memorize flashcards containing terms like Free Trade, Protectionism, Tariffs and more.
a. trade is a zero-sum activity, and if someone gains, someone must lose. b. those who import products have better opportunity to make money than those who export products. c. changes in product prices caused by trade will increase rewards to the suppliers of some factors and decrease rewards to suppliers of other factors.
3.1 International trade: Free trade. what are the gains as a result of trade. Click the card to flip 👆. 1) increase in competition. 2) increase in economies of scale. 3) improvements in efficiency. 4) lower prices for consumers. 5) more consumer choice. 6) scale of exports provides foreign exchange.
The meaning of "terms of trade" is A) the price of a country's exports divided by the price of its imports. B) the amount of exports sold by a country. C) the price conditions bargained for in international markets. D) the quantities of imports received in free trade. E) the tariffs in place between two trading countries.
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Jul 28, 2019 · Free trade means that countries can import and export goods without any tariff barriers or other non-tariff barriers to trade. Essentially, free trade enables lower prices for consumers, increased exports, benefits from economies of scale and a greater choice of goods.
Identify a demand curve and a supply curve. Explain equilibrium, equilibrium price, and equilibrium quantity. First let’s first focus on what economists mean by demand, what they mean by supply, and then how demand and supply interact in a market.
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The interaction of supply and demand determines a market equilibrium in which both buyers and sellers are price-takers, called a competitive equilibrium. Prices and quantities in competitive equilibrium change in response to supply and demand shocks.
