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Production, Costs, and Profits

Can you assist with question below?

Blinder, A.S. "Free Trade." Library of Economics and Liberty. Retrieved November 17, 2009 from: http://www.econlib.org/library/Enc/FreeTrade.html

Chang, H (2007) "Protecting the Global Poor." Prospect Magazine. Retrieved November 17, 2009 from: http://www.prospect-magazine.co.uk/article_details.php?id=9653

Friedman, M. (1997) "The Case for Free Trade." Hoover Digest. Retrieved November 17, 2009 from: click here

Write a 3-4 page paper that addresses the following questions:

1. How does trade affect the production possibilities frontier? Explain.

2. What other factors can expand the production possibilites frontier. Explain.

3. Give an argument for or against trade. Explain your reasons. Be sure to support your answer.

4. What should government do to support your argument? Be specific.

Case Assignment Expectations:

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Can you assist with question below?

Blinder, A.S. "Free Trade." Library of Economics and Liberty. Retrieved November 17, 2009 from: http://www.econlib.org/library/Enc/FreeTrade.html

Chang, H (2007) "Protecting the Global Poor." Prospect Magazine. Retrieved November 17, 2009 from: http://www.prospect-magazine.co.uk/article_details.php?id=9653

Friedman, M. (1997) "The Case for Free Trade." Hoover Digest. Retrieved November 17, 2009 from: click here

Write a 3-4 page paper that addresses the following questions:

1. How does trade affect the production possibilities frontier? Explain.
Trade affects the production possibilities frontier because trade increases the combination of output that the country can consumer. One of the principles of economics is that trade can make everyone better of. Consider the simple example of two countries that have different production possibilities frontiers. If there is no trade each must consume what it produces, however, with trade, each country can specialize in the good they produce better and trade in that good.
What causes the effect on the production possibilities frontier is comparative advent. Trade can benefit both countries if they specialize in the good in which they have comparative advantage. The production possibilities frontier is enhanced.
Consider the example of a production possibilities frontier where the country produces two goods, sugar and wheat, Because there are limits on the country's resources, the production of extra wheat would mean some resources would be diverted from the production of sugar. Similarly consider the production possibilities frontier for another country. This country can also produce only two ...

Solution Summary

Production, Costs, and Profits is discussed very comprehensively in this explanation..

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