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Read Chapters 2 and 3, and remember to include references and links to the websites that are important contributors to your posts. The theory of comparative advantage states that there are gains from trade if countries specialize and optimize their opportunity costs. Why is comparative advantage a driving force behind trade behind trade between regions and countries? Why does specialization lead to welfare improvement? Why engaging in trade is better than trying to be self-sufficient? To be an effective learning tool the Discussion Board topics require your active discussion of the topic with at least two of your classmates. First post made during, or before, Saturday. Posts on at least 3 different days. Responses to at least two other classmates. Substantive posts that stimulate further active discussion, posts that accurately reflects the learning, that are logical, and clearly presented with correct spelling, word usage, and grammar. To be counted as a substantial post, your main post to the Discussion topics should be at least 200 words per Discussion topic. Respond to two of the following Discussion topics.

Read Chapters 2 and 3, and remember to include references and links to the websites that are important contributors to your posts. Economists use economic models to study real world economic issues. The two basic economic models are Production Possibility Frontier (PPF) and the Circular Flow Diagram. How does the production possibility frontier model help us understand the feasible and efficient amounts that can be produced? What does the outward shift in production possibility curve indicate? What are the major markets and economic decision makers (economic agents) the circular flow diagram indicate? What is the importance of the diagram in various markets of the economy or economic interactions (transactions)? Journal entry questions are related to the application of the key concepts you learn to the real-world economic issues. The questions contain key economic principles and ideas related to the Macroeconomics topics you are learning. Please feel free to express your perspectives and state how the economic principles and ideas affect your economic decision making process. You should note that there is a limit to the number of words for the Journal entry. You can only enter the maximum 400 words. Absolute and comparative advantages differ in both meaning and importance. An individual or a country may have absolute advantages in producing several products and services whereas others may have comparative advantages. Give an example in which one person has absolute advantages in doing two things but another person has a comparative advantage in doing one of the tasks. Will both individuals benefit if they specialize in a task based on their comparative advantage and engage in trade? The circular flow diagram shows us how economic agents interact in various markets once the economic decisions (choices) are made. As an economic agent, in which market do you participate in the circular flow diagram? How does the flow diagram help you understand the roles of the economic agents in the market?

This is an easy topic. You might have seen stray dogs in your street. You are well aware how troublesome, dirty and noisy they are! The people are generally afraid of them. Write this essay in a very simple way. Describe how you see the dogs what troubles do they create. Sometimes one or the other goes mad-fearful. Thanks to the lethargy of the town committee they are always on the increase. Stray dogs in my street are a very big problem. They welcome every stranger or passer-by with a loud bark. Their barking is not only disturbing but also highly frightening. These dogs, nearly ten to fifteen in number, have partial control over ‘law and order’ in my street during daytime but full administration during night hours. Some of these dogs are very dangerous. The school going children and the strangers are never safe. Every week you can hear one or the other case of a dog-bite.