How Did Europe Benefit From Africa? European countries realised that by taking control of African territories they could secure a very cheap supply of raw materials that would ensure industrial success and overall economic prosperity. Colonial governments organised agricultural production in the colonies to match the demand for raw materials in Europe. How did Europe
Why Do Producers Use The Economy Of Scale Theory? Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable. How does
In What Way Are Business And Households Both Sellers And Buyers In This Model? In what way are households sellers and buyers in this model? These households are willing to sell their resources to businesses because attractive prices draw them into specific resource markets. Businesses buy resources because they are necessary for producing goods and
What Is The Term For Any Item That Can Be Used To Produce Goods And Services? Resources: Natural/Human/Capital. Anything used to produce goods and services; all natural, human and human-made aids to the production of goods and services, also called productive resources. Which term best describes anything that is used in the production of goods
What Best Describes The Economic Policy Of Mercantilism? Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. … It promotes government regulation of a nation’s economy for the purpose of augmenting state power at the expense of rival national powers. What was the economic policy
Why Does Adam Smith Think The Kings And Ministers Should Stay Out Of The Economy? Why does Smith think the Kings and Ministers should stay out of the economy? Adam Smith Believes in: “The sole purpose of all production is to provide the best possible goods to the consumer at the lowest possible price. What
What Are Three Weaknesses In The Chinese Economy? Our prediction has always been that the Chinese economy is solid, until the day when suddenly it’s not. What could shift the status quo? The three most likely factors are property, debt and trade war, and on all three fronts we saw developments this week. What are
How Does A Country Use The Idea Of Comparative Advantage To Decide When To Trade? comparative advantage is the key to determining specialization and trade. Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers. … They can then trade for the
What Conclusion Can Someone Draw From The Map States With The Highest Per Capita? What conclusion can someone draw from the map? States with the highest per capita GDP tend to be in the South. Alaska has the lowest per capita GDP of any state. States with the lowest per capita GDP tend to be
Who Owns The Factors Of Production In The Circular Flow? In a simplified model of an economy, known as a circular flow diagram, households own the factors of production. They sell or lend these factors to firms, which produce goods and services that households buy. Under this theoretical model, firms do not own the factors