Question

Many countries, including Pakistan, import substantial amounts of goods and services from other
countries. However, economists claim that a country can enjoy a high standard of living only if it
can produce a large quantity of goods and services itself. Can you reconcile these two facts? (1
Marks, Maximum 100 words).
b. Given the production function Y= AF (L, K, H, N), explain the determinants of productivity. (2
Marks, Maximum100 words).
c. Population growth has a variety of effects on productivity. Explain this statement and justify your
answer. (2 Marks, Maximum 200 words).

Answer 1

Answer:

Explanation:

We are aware that commerce tends to benefit both nations equally. Most nations can still maintain a high quality of living even when they import a lot of goods and services. Regardless of whether they import a lot or not, they are still probably exporting a lot of goods and services. This is the result of the specialisation concept. This implies that these nations should export commodities in which they are experts and in which they have a competitive advantage over other nations. A high level of life will be possible for nations if they are able to create and sell the items in which they specialise due to their comparative advantage.

They lack a comparative advantage since they will also be imported. It enables domestic consumers to purchase commodities in which their nation has a comparative advantage as well as those in which they do not, allowing them to purchase more of the latter due to international trade. It is happening. Because other nations may specialise in such things, we export what we are good at and import what we are not. Because we offer a wider range of options, we can cut our rates. Overall, we observe an improvement in the standard of living.

For more such type of questions:

https://brainly.in/question/16541192

#SPJ1