homework question help

Economics
Tutor: None Selected Time limit: 1 Day

Why does specialization lead to welfare improvement? 

Aug 3rd, 2015

Thank you for the opportunity to help you with your question!

We are constantly told that specialization increases efficiency. But over specialization increases dependence. If you look at the economy as an ECONOMIC POWER GAME then dependence makes one vulnerable. 

Economists don't call economics a power game very much. How many economics courses do you have to take before they get into game theory? 

If EVERYBODY knew accounting how would that change how they played the game? Most worker consumers are supposed to be suckers that do not know what is going on. The economists don't talk about how we go into debt for crap designed to become obsolete. They just call it economic growth when we buy the trash. 

Americans have lost FOUR TRILLION DOLLARS on the depreciation of automobiles since 1995. What have economists said about it? We are supposed to be specialized at being stupid consumers. That is the specialty of dumb Americans.

Please let me know if you nea case for torture by michale levined any clarification. I'm always happy to answer your questions.
Aug 3rd, 2015

I am confused with this answer

Aug 3rd, 2015

wait

Aug 3rd, 2015

Ricardo was opposed to tariffs and other restrictions on international trade. Ricardo devised an idea that is well known as the theory of comparative advantage. According to the Washington Council on International Trade, comparative advantage is the ability to produce a good at a lower cost, relative to other goods, compared to another country. In the Principles of Economics, it states comparative advantage is a specialization technique used to create more efficient production and describes opportunity cost between producers. With perfect competition [4] and undistorted markets, countries tend to export goods in which they have a comparative advantage ("Comparative Advantage"). 

For example, we should think of two countries that both make cards and pencils and use the same amount of time to make one unit of items. Country one can make 4 pencils if they specialize just in pencils at the expense of one card, but this country can also make ¼ of a card at the expense of one pencil. The same logic goes for country two: if country two makes only pencils, it will make 2 pencils at the expense of 1 card. If country two specializes only in cards, it will make ½ of a card at the expense of a pencil. For this example, country one has a comparative advantage in pencils over country two (4 pencils to 2 pencils), whereas, country two has a comparative advantage in cards over country one (½ of a card to ¼ of a card). In Ricardo's idea of comparative advantage, these two countries should specialize in what they do best. According to The Fortune Encyclopedia of Economics, Ricardo's idea of comparative advantage is "the main basis for most economists' belief in free trade today" 

Aug 3rd, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Aug 3rd, 2015
...
Aug 3rd, 2015
May 23rd, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer