One of the ten principles of the economics “Trade Can Make Everyone Better Off”, explain

how and why? Minimum 100words, 2.5Marks).

Trade can have a huge impact on the economy prosperity of the society and the economy.
Trade in an economy would mean that people would be exchanging their goods in return of
money or other assets. These returns would be made at a profit. The profit in the trade would
represent the income of the traders. Thus, an increased trade might directly result in increased
income. This increased income would mean that the people would be able to improve their
standard of living and have access to better quality products and services. The educational
standards would rise as the people would now have access to quality education due to greater
financial security. The same can be said for the case of healthcare too. higher incomes would
mean that the people would now be able to ensure the best of medical facilities and afford the
cost of healthcare
Furthermore, in a wider spectrum trade can help to specialize and help them concentrate on
producing what they can produce most efficiently. This would mean that they can even use this
expertise to succeed in the international markets too. (Mankiw & Rashwan, 2018)
Thus, as far as the economic benefits are concerned the benefits of trade are numerous.
In fact, it is considered essential if an economy needs to grow and achieve economic growth.
Trade would result in greater employment as more and more goods will be produced. This
would also result in a direct increase in the Gross domestic product, which would signify
economic growth of the economy.

(252 words)

One of the ten principles of the economics “Governments Can Sometimes Improve Market
Outcomes” explain how and why? Minimum 100words, 2.5Marks).

One of the ten principles of the economics “Markets Are Usually a Good Way to Organize
Economic Activity” explain how and why? Minimum 100words, 2.5Marks).

Market is referred as a group of buyers and sellers interacting and trading while organizing
economic activity would mean takes into account the process of determining the type of goods
which must be produced, how these goods would be produced, how much should be produced
and then lastly who would get the products.
Taking these into consideration the markets would have sellers and the buyers. The sellers
would identify what type of goods they can manufacture which would be sold in the market.
The same way they would then assess their own capabilities and resources to identify whether
they are in a position to make it or not. Their resources and the market analysis would give
them a clear picture of how much they should produce in order to be profitable in the market
and the decide about their target market. All this process can be continued and different
intermediaries would continue to do the same. In other words there would be a functioning of
the market where there would be an “invisible hand” which would ensure that there is a
mechanism of demand and supply and the market economy. Goods which are demanded and
in the form they are demanded would be produced. This would also mean that the firms who
are producing must adhere to the standards or requirements of the customers. The whole
economy would be based on the market with the producers producing what the customers
want. The firm which is not being able to produce goods according to the needs of the
customers would not be able to earn profits and would be driven out of the market. In the
same manner the prices would be determined by the market equilibrium. The producers must
produce according to the price which was given to them. There would be efficiency oriented
functionality of the market which would give everyone the access to grow. (Mankiw &
Rashwan, 2018)
( 316 words)

One of the ten principles of the economics “Governments Can Sometimes Improve Market
Outcomes” explain how and why? Minimum 100words, 2.5Marks).
Government can take actions to ensure that the market outcomes are improved. One of the
first and most common example could be the strict following of law and order. This would
mean that the businesses would have the safety and security to operate without any
hinderance. Unethical activities would be punishable by law and would also ensure that the
contracts and agreements would be enforced too.
The government can also contribute towards the development of efficiency by providing
infrastructure, setting legislations for efficiency to ensure that a firm is able to improve its
efficiency.
The state can also contribute towards providing a level playing field for all. This might mean
that it can use its laws to reduce the monopoly and stop the collusion of firms. All these
measures can help the market to grow and market outcomes to improve.

One of the ten principles of the economics “A Country’s Standard of Living Depends on Its
Ability to Produce Goods & Services” explain how and why? Minimum 100words, 2.5Marks).

The rate at which goods and services are produced would have a direct impact on the standard
of living for an economy. In other words, the productivity can be regarded as the key to the
standard of living. An example of this principle would be more accurate. Consider the fact that a
worker is paid AED10 for each Pizza he bakes. Assuming that all have the same cooking
materials there is one worker who bakes 10 Pizza per hour while another worker bakes 20
Pizza’s per hour. There is a clear difference that the worker who was more efficient would get a
greater in wages. The same can be applied for the case of an economy too. if the workers and
employees of the economy are efficient and can produce more than any country the standard
of living would be greater as they would be able to get a greater return for their efficiency or
the ability to produce higher amount of goods and services. The notion is clear that the income
would increase with rising production. The country would sell more and then gain more profits
and the overall gross domestic product would be higher in all circumstances. Thus, in all the
standard of living would depend on the ability of the production of goods and services.
(Mankiw & Rashwan, 2018)
(218 Words)
References

Mankiw, N. G., & Rashwan, M. H. (2018). Principles of economics: Arab world. Cengage.