Economics

tax that is an equal amount for everyone and doesn't depend on how much you earn.

Speculators from rushing into and out of a country's market and disrupting its economy./

Specialized production

The IMF wants to help struggling countries better manage their economies.

To win political support

Rationing

International Trade

Which of the following pairs of prefixes are closest to each other in size?

The ownership of preferred stock

The passage of environmental protection laws results in higher prices.

the standard of living

Labor costs are lower in other countries.

To reduce competition from foreign producers.

People cannot quit drinking coffee even though they want to cut down on caffeine intake.

Some northern states made slavery against the law.

Think that you're country A, wanting to buy pen and paper.

Country B produces 1 million pen and 1 BILLION paper

Country C produces 1 BILLION pen and 1 million paper

Or, country B has the absolute advantage over production of paper while

country C has the absolute advantage over production of pen.

Coming back our theory of economy of scale, we know that to a certain point, increased production would lead to lower average cost and thus, lower price.

This would mean that paper from country B is cheaper than country C whereas pen from country C is cheaper than country B.

Therefore, you would choose to trade paper with country B while trading pen with country C.

And this is why it is important to making economic choices.

higher prices

part of the public sector

They have a larger number of potential customers because people anywhere can buy from them.

To raise money to fund a company's activities.

A restriction on when a union may call a strike

cutting taxes

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