Assume that you have an opportunity to visit civilization in outer space. Its society is at roughly the same stage of development as the US society is now. Its economic system is virtually identical to that of the United States, but derived trading is ILLEGAL. Compare and contrast this economy with the US economy, emphasizing the difference due to the presence of derivative markets in the latter.

"Poor countries like Malawi have no absolute advantages.  They have poor soil, low investments in formal education and hence low-skill workers, no capital, and no natural resources to speak of.  Because they have no advantage, they cannot benefit from trade." How would I respond to this statement?

From an economic point of view, India and China are somewhat similar: Both are huge, low-wage countries, probably with similar patterns of comparative advantage, which until recently were relatively closed to international trade. China was the first to open up. Now that India is also opening up to world trade, how would you expect this to affect the welfare of China? Of the United States? (Hint: Think of adding a new economy identical to that of China to the world economy.) A. From China's perspective, the world relative supply curve will shift to the left. This shift will improve China's terms of trade. The U.S. purchases of Chinese exports will hurt the U.S. by decreasing the relative price of goods that the U.S. exports. B. From China's perspective, the world relative supply curve will shift to the right. This shift will worsen China's terms of trade. The U.S. purchase of Chinese exports will benefit the U.S. by increasing the relative price of goods that the U.S. exports. C. From…

Adam Smith argued that the division of labor and specialization give rise to a need for which in turn requires exchange; medium of exchange economic data; money money; medium of exchange markets; regulation