econ

Question 1

cheapest cost avoider principle

Answer 1

takes into account the reality of different trans-
action costs when it comes to the efficiency of the allocation of property rights

Question 2

Heckscher-Ohlin model

Answer 2

• abstracts from foreign direct investment and migration
• can be used to simulate the effects of a trade war on the
  countries involved.

Question 3

effective altruism,’

Answer 3

ndividuals should think in terms of alternatives and
opportunity costs when behaving charitably