Explain the Short Run and Long Run Effects on Output

question 23

Essay

Explain the short run and long run effects on output and prices of a recession overseas causing foreigners to buy fewer SA goods.Create a chart to demonstrate the effects.

Determine which product a country has a comparative advantage in producing.

Explain the main reasons for a trade deficit.

Understand the effects of a tariff on the price and quantity of imported goods.

Recognize deviations from free trade policies and their implications.

---

Definitions:

Wage Rates

The standard amount of compensation an employee receives from an employer in exchange for performing a specific task or job, usually expressed per hour or year.

Labor Markets

A market in which individuals seek employment and employers seek workers.

Human Capital

Human capital refers to the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Average Salaries

The mean income received by employees within a particular job, industry, or geographical area.