Why Must We Know the Composition of Consumption in an Economy

question 26

Short Answer

Why must we know the composition of consumption in an economy in order to judge the effects of international trade on real income of the mobile factor?

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Definitions:

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.

Adjustment

The process of adapting or becoming better suited to a particular situation or set of conditions.

Pressure

Pressure is the sense of urgency or stress experienced by an individual in response to high demands, expectations, or external forces, often affecting performance and decision-making.

Frustration

Frustration is an emotional response to opposition, related to anger, annoyance, and disappointment, caused by an inability to achieve something or by a perceived lack of control over a situation.