Importance of exchange to nation’s prosperity and the impact of trade in the economy.

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Three economic questions must be determined in all societies. What are they? What goods will be produced? How will goods be produced? For whom will goods be produced? What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced? What will the price of each good be? Who will produce each good? Who will consume each good? How much will be produced? When will it be produced? How much will it cost?

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Chapter 2, Problem 10CQ

To determine

Importance of exchange to nation’s prosperity and the impact of trade in the economy.

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