The Simple Trade Model Demonstrates That Countries Can Expand Consumption

question 15

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 case.

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Definitions:

Demand Characteristics

Cues in an experimental environment that communicate to participants how they are expected to behave.

Ambiguous Pictures

Images designed to be open to multiple interpretations or to create visual uncertainty.

Duck/Rabbit

An ambiguous image that can be seen as either a duck or a rabbit, used to discuss perceptual shifts and cognitive processes.

Mental Images

Visual representations in the mind that are not currently being perceived through sight.