Structural barrier- network effects mean that a larger network is more valuable to any individual user. This means that new, small networks (e.g. social networks) will not be able to compete against larger incumbent networks with more users.
-Set rules for trade between member countries.
-Resolve trade disputes between countries.
. . . decrease
True
Even with one country having absolute advantage, each country will have comparative advantage in one good.
Comparative advantage allows production at a lower opportunity cost.
Trade allows countries to benefit from the lower opportunity cost in another country, even if one country is more efficient in the production of each good.
When actual GDP growth is higher than potential GDP growth.
Any event which increases the factors of production or increases the efficiency of the factors of production. e.g. more immigration, new technology that affects both industries
-Creates a market incentive for innovation to cut carbon.
-Efficient because it is cost effective: carbon emissions can be cut by the firms who have the cheapest costs.
→ Demand shifts left
→ Lower Price
→ Lower Quantity
