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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? |
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There is no answer at this time. |
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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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