Answer to Question #227728 in Economics for Zain

Question

Explain the difference between" the national efficient level"for one country and the"global efficient level" for two countries (in bilateral agreements). Illustrate your answer by means of a graph

Answer 1

Since the national effective level characterizes the number of goods or services required within the country, it can be argued that when calculating the national effective level, the country's potential is not fully used, since, due to specialization, a certain country may release more goods than is necessary to achieve the national effective level. level.

In the case of a global effective level for two countries, the efficiency of using the resources of each country increases.