What did Paul Krugman win the Nobel Prize for?

Krugman was awarded the Nobel Memorial Prize in Economic Sciences (informally the Nobel Prize in Economics), the sole recipient for 2008. This prize includes an award of about $1.4 million and was given to Krugman for his work associated with New Trade Theory and the New Economic Geography.

What is Krugman new trade theory?

22 May 2018 26 April 2017 by Tejvan Pettinger. New trade theory (NTT) suggests that a critical factor in determining international patterns of trade are the very substantial economies of scale and network effects that can occur in key industries.

What is meant by Leontief paradox?

Leontief’s paradox in economics is that a country with a higher capital per worker has a lower capital/labor ratio in exports than in imports. Leontief inferred from this result that the U.S. should adapt its competitive policy to match its economic realities.

Is the best explained through the new trade theory?

“New” new trade theory While new trade theory put emphasis on the growing trend of intermediate goods, this new trend emphasizes firm level differences in the same industry of the same country and this new trend is frequently called ‘new’ new trade theory (NNTT).

Is there any particular trade theory which is dominant around the world today?

This strategy is called protectionism. and is still used today. Nations expanded their wealth by using their colonies around the world in an effort to control more trade and amass more riches. Although mercantilism is one of the oldest trade theories, it remains part of modern thinking.

What is factor proportion theory?

Operating with these assumptions, the factor proportions theory states that a country should specialize in the production and export of those products that make use of its relatively abundant factor. A country that is relatively labor abundant should specialize in the production of relatively labor intensive goods.

When was the new trade theory?

2004

What is the conclusion of new trade theory?

Conclusion (All) New trade theory argues that economies trade and specialize to take advantage of increasing returns and lower costs, not subsequent differences in factor endowments that traditional trade theory addresses.

Is free trade passe Krugman?

“Free trade is not passé, but is an idea that has irretrievably lost its innocence” (Krugman, 1987, p. 132). In his article, Is Free Trade Passé, Paul Krugman writes that the classical trade theory has been replaced with a new trade theory.

What is theory of absolute advantage?

Absolute advantage is when a producer can produce a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than other producers. By specialization, division of labor, and trade, producers with different absolute advantages can always gain more than producing in isolation.

What is an example of absolute advantage?

Absolute advantage refers to the ability of a country to produce a good more efficiently than other countries. For example, the Canadian economy, which is rich in low cost land, has an absolute advantage in agricultural production relative to some other countries.

Who invented absolute advantage?

Adam Smith

Can there be no absolute advantage?

Adam Smith first described the principle of absolute advantage in the context of international trade, using labor as the only input. Since absolute advantage is determined by a simple comparison of labor productiveness, it is possible for a party to have no absolute advantage in anything.

What country has an absolute advantage?

In Table 1, Saudi Arabia has an absolute advantage in the production of oil because it only takes an hour to produce a barrel of oil compared to two hours in the United States. The United States has an absolute advantage in the production of corn.

Which country has an absolute advantage for producing books?

Singapore

Is it possible to have a comparative advantage without having an absolute advantage?

It is not possible for a country to have a comparative advantage in all goods. However, a country can have an absolute advantage in all goods. An absolute advantage exists when a country is simply the best (most efficient) in producing a product or service.

What is an example of a comparative advantage?

Comparative advantage is what you do best while also giving up the least. For example, if you’re a great plumber and a great babysitter, your comparative advantage is plumbing. That’s because you’ll make more money as a plumber.

What are the four main sources of comparative advantage?

Sources of Comparative Advantage

Natural Resources. Perhaps the easiest example of comparative advantage arrises out of differences in natural resources.
Specialization. When people are born, they are all fairly similar in their capacities to make economic goods.
Scale.
Competition.
Conclusion.

How is comparative advantage determined?

In order to determine if comparative advantages exist between the two countries, you have to figure out the opportunity cost of making one unit of one of the items. Their opportunity costs are lower for each of these products relative to one another, and so there is potential for beneficial trade.

What are the disadvantages of comparative advantage?

Limitation of the theory of comparative advantage

Transport costs may outweigh any comparative advantage.
Increased specialisation may lead to diseconomies of scale.
Governments may restrict trade.

In what good does the United States have a comparative advantage?

In what good does the United States have a comparative advantage? c. Is there a possible trade that benefits both countries? Japan has a comparative advantage in cloth and will trade cloth for wheat; the United States has a comparative advantage in wheat and will trade wheat for cloth.

What is the difference between comparative advantage and absolute advantage?

Absolute advantage refers to the uncontested superiority of a country or business to produce a particular good better. Comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production diversification.

Which country has the absolute advantage in bananas?

Puerto Rico

How do you do absolute advantage?

Make a table like Table 19.6.
To calculate absolute advantage, look at the larger of the numbers for each product.
To calculate comparative advantage, find the opportunity cost of producing one barrel of oil in both countries.

Which situation is the best example of opportunity cost?

It is the important concept in economics and also the relationship which is between choice and scarcity. A good example of opportunity cost is you can spend money and time on other things but you can not spend time reading books or the money in doing something which can help.

What did Paul Krugman win the Nobel Prize for?

What are some other ways that economics and medicine are alike quizlet?

What are some other ways that economics and medicine are alike? They are not perfect sciences. You are never 100% sure of the consequences and outcome of a remedy. Medicine is a practice and economics is also a practice.

Is Paul Krugman married?

Robin Wells

What would happen to the equilibrium quantity and price of sugar if strict immigration laws made many sugar cane harvesters leave the country?

What would happen to the equilibrium quantity and price if the wages of sugar cane harvesters increased? Equilibrium price would rise and equilibrium quantity would fall.

What would likely happen to the market for fruits like these as a result of a severe frost in the south?

What would LIKELY happen to the market for fruits like these as a result of a severe frost in the South? The market would be thrown into disequilibrium.

What is Krugman new trade theory?

Krugman explains observed patterns of trade in the modern era as based on the interaction of consumer preferences for diverse brands of products, which support the persistence of multiple close substitute products traded back and forth between similar countries, and the home market effect, which supports specialization …

Where did Paul Krugman go to high school?

Massachusetts Institute of Technology1974–1977

Who developed new trade theory?

Paul Krugman

Which comes from economic growth ended malaria in the United States?

wealth comes from what? Wealth ended malaria in the United States by: the ability to pay for the prevention of malaria.

What is the relationship between malaria and economic growth?

Taking into account initial poverty, economic policy, tropical location, and life expectancy, among other factors, countries with intensive malaria grew 1.3% less per person per year, and a 10% reduction in malaria was associated with 0.3% higher growth.

Which organ does the malaria parasite attack in humans?

The malaria parasites enter that person’s bloodstream and travel to the liver. When the parasites mature, they leave the liver and infect red blood cells.

Where does the infection parasite that causes malaria grow in the human body?

Lifecycle. The natural history of malaria involves cyclical infection of humans and female Anopheles mosquitoes. In humans, the parasites grow and multiply first in the liver cells and then in the red cells of the blood.

Which human organ is the first to attacked by malaria?

The life cycle of malaria parasites. A mosquito causes an infection by a bite. First, sporozoites enter the bloodstream, and migrate to the liver.

What is the virus or bacteria that causes malaria?

Malaria is caused by the Plasmodium parasite. The parasite can be spread to humans through the bites of infected mosquitoes.

What happens if malaria is left untreated?

If malaria is left untreated, it could result in anemia, jaundice, mental confusion, kidney failure, a coma, seizures and even death.

Can you have malaria and not know it?

People with asymptomatic malaria carry the infection but have no idea they do because they do not have any indicators. This is incredibly dangerous because without symptoms, they will not get treated and can then infect countless others with the disease.

What is the most common accurate method to confirm a diagnosis of malaria?

Thick and thin blood smears. These are the most common and accurate malaria tests. A lab technician, doctor, or nurse will take some of your blood and send it to a lab to be stained to make any parasites show clearly.

Why is thick smear not fixed?

Thick smear. It is not fixed in methanol; this allows the red blood cells to be hemolyzed, and leukocytes and any malaria parasites present will be the only detectable elements. However, the hemolysis may lead to distorted plasmodial morphology making plasmodium species differentiation difficult.

How do you carry out a malaria parasite test?

Malaria parasites can be identified by examining under the microscope a drop of the patient’s blood, spread out as a “blood smear” on a microscope slide. Prior to examination, the specimen is stained (most often with the Giemsa stain) to give the parasites a distinctive appearance.

Which parasites can be detected in blood?

Blood parasites may be detected on routine screening of apparently healthy passerines, but they are rarely implicated as the primary cause of disease or death. The most commonly encountered blood parasites include Haemoproteus spp., Leucocytozoon spp., Trypanosoma spp., Plasmodium spp. (malaria) and microfilaria.

How do you count malaria parasites?

To quantify malaria parasites against WBCs: on the thick smear, tally the parasites against WBCs, until you have counted 500 parasites or 1,000 WBCs, whichever comes first; express the results as parasites per microliter of blood, using the WBC count if known, or otherwise assuming 8,000 WBCs per microliter blood.

What tests are done to diagnose malaria?

Testing is performed to help diagnose malaria, to monitor for relapses, and to determine drug susceptibility of the parasite causing the infection.

Thick and thin blood smears.
Rapid diagnostic tests (antigen testing)
Molecular tests (Polymerase chain reaction, PCR)
Antibody tests (serology)
Susceptibility testing.

How is typhoid and malaria tested?

Owing to the nonspecific nature of Widal agglutination test, and cross reactivity between anti malarial antibody and antibody against Salmonella Typhi co-infection with malaria and typhoid is often detected by rapid diagnostic tests.