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Q: Business,Government, and the World Economy ( No Answer,   1 Comment )
Question  
Subject: Business,Government, and the World Economy
Category: Business and Money > Economics
Asked by: samantha05-ga
List Price: $3.00
Posted: 09 May 2004 09:29 PDT
Expires: 08 Jun 2004 09:29 PDT
Question ID: 343540
1.Quebec is capable of producing 10 pallets of wood shingles or 8
barrels of maple syrup with a unit of labour. Vermont is capable of
producing 12 pallets of wood shingles or 12 barrels of maples syrup
with a unit of labour. Assume that this is typical of the labour force
as a whole. Discuss the situation in terms of absolute advantage,
comparative advantage, and gains from trade.

2.The Hong Kong dollar depreciates by 5% against the US dollar, but
Hong Kong inflation also rises by 5%. What will happen to the Hong
Kong current account? How would your answer differ if the authorities
managed to prevent inflation from increasing in Hong Kong?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Business,Government, and the World Economy
From: neilzero-ga on 13 May 2004 11:02 PDT
 
I don't know how one unit of labor is defined? Perhaps 3% of what you
can expect one human to produce per year? Unless it is adjusted for
deprication of equipment from one country to another, and several
other factors such as balance of payments, and average wages and
perks, i don't think we can conclude that it is better for Quebec to
import maple syrup and wood shingles than to produce them locally. 
Sorry I have no ideas on the rest of the questions. I suggest you
cancel this question and ask anew as separate questions.   Neil

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