Economics Questions

Economics Questions

The primary theme of the paper is Economics Questions in which you are required to emphasize its aspects in detail. The cost of the paper starts from $89 and it has been purchased and rated 4.9 points on the scale of 5 points by the students. To gain deeper insights into the paper and achieve fresh information, kindly contact our support.


Question Five

  1. The equilibrium-relative commodity price for the two nations
  2. The commodity of comparative advantage for Nation 1 is X while that of nation two is Y
  3. The comparative advantage or disadvantage between the two nations would arise when the two nations have an equal slope in relative commodity price line.

Question Six

  1. Graph showing specialization in the production and the equilibrium point of consumption and production.
  2. The nation 1 will gain by the total amount by which the point E is above point A and to the right. Nation 2 will gain by the excess of the E’ over A’. In this case, Nation 1 will gain more compared to nation 2 because the relative price of the X with the trade is variant from its pre-trade compared to that of nation 2.

Question Seven

  1. The Heckscher-Ohlin theory postulates that a nation will export those commodities that are intensive in its relatively cheap and abundant factor and that the international trade will bring about equalization in returns to the homogenous factors across different countries (O’Rourke, 2003).
  2. According to Heckscher-Ohlin factor endowments among nations serves as the basic determinant of comparative advantage and trade (O’Rourke, 2003)

Heckscher-Ohlin theory represents the standard model extension because it elucidates the basis of the comparative advantage and……………….

100% Plagiarism Free & Custom Written
Tailored to your instructions