The Simple Trade Model Demonstrates That Countries Can Expand Consumption

question 12

Essay

The simple trade model demonstrates that countries can expand consumption by specialising in the production of goods and services in which they have a comparative advantage.In reality we do not see complete specialisation in production.State three reasons why this is the case.

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Definitions:

Rock 'n' Roll Music

a genre of popular music that originated in the United States in the late 1940s and early 1950s, characterized by a simple, energetic style and influenced by blues, country music, and rhythm and blues.

African-American Rhythm-and-Blues

A genre of popular music originating in the African American communities in the 1940s, characterized by a strong rhythm, blues influence, and incorporating jazz, gospel, and rock and roll elements.

Early Jazz

A style of music characterized by distinctive rhythms and improvisation, emerging in the early 20th century, particularly in New Orleans.

COLA

Cost Of Living Adjustment, an increase in income or benefits to offset inflation, ensuring that purchasing power is maintained despite rising prices.