macroeconomic discussion post

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadlines.


Order a Similar Paper Order a Different Paper

Discussion Post

Basic Economic Models and Comparative Advantage

The Discussion topics include the difference between microeconomics and macroeconomics, the two basic economic models of the Circular Flow Diagram and the Production Possibility Frontier, and comparative advantage, which is the main force behind interdependence in the market economy and the gains from trade.

Topic 1

The theory of comparative advantage states that there are gains from trade if countries specialize and optimize their opportunity costs.

a. Why is comparative advantage a driving force behind trade behind trade between regions and countries?

b. Why does specialization lead to welfare improvement? Why engaging in trade is better than trying to be self sufficient?

Topic 2

Economists use economic models to study real world economic issues. The two basic economic models are Production Possibility Frontier (PPF) and the Circular Flow Diagram.

a. How does the production possibility frontier model help us understand the feasible and efficient amounts that can be produced? What does the outward shift in production possibility curve indicate?

b. What are the major markets and economic decision makers (economic agents) the circular flow diagram indicate? What is the importance of the diagram in various markets of the economy or economic interactions (transactions)?

"Is this question part of your assignment? We can help"

ORDER NOW
Writerbay.net

Do you need help with this or a different assignment? We offer CONFIDENTIAL, ORIGINAL (Turnitin/LopesWrite/SafeAssign checks), and PRIVATE services using latest (within 5 years) peer-reviewed articles. Kindly click on ORDER NOW to receive an A++ paper from our masters- and PhD writers.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper