Trade-Off Definition In economics, a very basic trade-off can be understood as the idea that if you choose one thing, you are going to lose another. The trade-off is taking the opportunity to have something, but in order to get that thing, you have to give up, or sacrifice, ...
trade deficit inEconomics topic From Longman Dictionary of Contemporary Englishˈtrade ˌdeficit(alsotrade gap)noun[countable]theamountby which thevalueof what a countrybuysfrom abroad is more than the value of what itsellsExamples from the Corpustrade deficit•I see a growingtrade deficitand ...
free trade inEconomics topic From Longman Dictionary of Contemporary Englishˌfree ˈtradenoun[uncountable]a situation in which the goods coming into or going out of a country are not controlled ortaxedExamples from the Corpusfree trade•In aseapowereconomy,vestedinterests are in open markets an...
Today’s article will be the interpretation of one of Professor N. Gregory Mankiw’s economics principle: People Face Trade-offs. Humans have limitless wants, we allocate resources to make them develop maximum values, so we can fulfill our wants and receive the maximum benefits. But if you na...
In this lesson, learn about terms of trade in economics. Understand what influences the terms of trade and how to calculate it using the terms of...
What is the definition of economic value? What are the arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain. What is a traditional economy? What is VMPL in economics? [BUSI...
How Does a Trade Surplus Work in Economics? Thetrade balanceof a country is determined by comparing the sum of all its imports (i.e. the total value of the products it purchases from other countries) and its exports (i.e. the value of all the products it distributes to other countries...
Losers notwithstanding, the existence of national gains from trade ensures that ‘aggregate welfare’ must rise, meaning that it would be possible totaxsome of the winners' gains, compensate the losers, and still leave no one worse off. Free trade is thus the archetype of a situation which is...
Trade secrets may differ across jurisdictions but have three common traits: not being public, offering some economic benefit, and being actively protected. U.S. trade secrets are protected by the Economics Espionage Act of 1996. Understanding a Trade Secret ...
While the law of comparative advantage is a regular feature of introductory economics, many countries try to shield local industries with tariffs, subsidies, or other trade barriers. One possible explanation comes from what economists callrent-seeking. Rent-seeking occurs when one group organizes and...