The following table indicates output per day for Thailand and India: rice    wheat India 10 15 Thailand 20 45   Based on the scenario above, we can see that when it comes to RICE…

What does area A represent? 

Adam Smith is considered the father of economic thought. Even though his philosophy is old, his views still provide the foundations for economic courses we teach today.  

The following indicate output per day for Thailand and Laos:   corn    rice Laos    28  40 Thailand  16  28   Based on your calculations of opportunity cost (in previous questions), who has the comparative advantage in RICE? 

After the tariff is imposed, imports fall to the quantity represented by Q3-Q2 (the difference between Q2 and Q3). 

In this lesson about the welfare effects of tariffs… We learned that tariffs are problematic for consumers…they make consumers worse off. But, tariffs do not shrink the size of the “economic pie.” 

An embargo is:

The following indicate output per day for Thailand and Laos:   corn    rice Laos     28  40 Thailand  16  28   In a simple problem like this with 2 countries and 2 goods, it is possible for one country to have the absolute advantage in both activities. 

The following indicate output per day for Thailand and Laos:   corn    rice Laos   28  40 Thailand  16  28   Based on the scenario above, what is Thailand’s opportunity cost of corn? 

If this country has a CLOSED economy, producer surplus for domestic pasta makers would include area A…but area A does not represent all of it.