An upgrade of capital to the best available technology that is currently available. Better technology improves worker productivity. The capital-labor ratio declines due to low savings rates. Compared to the no-trade situation, when a country imports a good Domestic consumers gain, domestic producers lose, and the gains outweigh the losses. Domestic consumers gain, domestic producers lose, and the losses outweigh the gains.
Domestic consumers gain and domestic producers lose an equal amount.
Too little of both goods. Too much of the good that generates external benefits, and too little of the good that generates external costs. Too little of the good that generates external benefits, and too much of the good that generates external costs. He knows that he must own London Calling by the Clash. Adam Smith's diamond-water paradox Can be resolved by distinguishing between marginal and total utility.