The Simple Trade Model Demonstrates That Countries Can Expand Consumption

question 179

Essay

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

---

Definitions:

Permanently Lethargic

Describes a state of continuous tiredness, a lack of energy, and general disinterest in activities, which may stem from various medical or psychological conditions.

Patients

Individuals who receive medical treatment or care from healthcare professionals due to illness or injuries.

Lobotomy

A now-obsolete surgical procedure involving the cutting or scraping away of sections of the frontal lobes of the brain, once used to treat mental illness.

Frontal Lobes

Regions of the cerebral cortex located at the front of the brain, important for voluntary movement, expressive language, and managing higher level executive functions.