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### Explore BrainMass

1. Will a country do better importing or exporting a good for which it has a comparative advantage? Why? 2. Why does competition among traders affect how much of the gains to trade are given to the countries involved in the trade? 3. If you were economic adviser to a coun

### Scarcity and Choice

5. The countries of Figistan and Blah are small island countries in the South Pacific. Both produce fruit and timber. Each island has a labor force of 1,200. The table below gives production per month per worker in each country: BASKETS OF FRUIT BOARD FT OF TIMBER Figistan workers 10 5 Blah workers 30 10 a. Which c

Explain the difference between absolute and comparative advantage.

### Consumer Price Index (CPI), government policies regarding the economy

1. Suppose that 1967 is the base year for the Consumer Price Index (CPI) and in 1988 the CPI is 340. What does this "340" mean? a.) What cost \$100 in 1967 will cost 340 times as much in 1988. b.) What cost \$100 in 1967 will cost \$340 more in 988. c.) What cost \$100 in 1967 will cost 100/340 (or .2941) times as much in 1988

### Comparative and Absolute Advantage: Example Questions

Can you please discuss the difference between comparative advantage and absolute advantage. Also, provide a specific example so I can understand the difference. How do changes in interest rates, inflation, productivity and income affect exchange rates? Also can you give specific examples of how technology and e-business im

### Consumption, income and leisure time

Consider the problem of maximizing u(c,l) subject to pc + wl = w + y, where c is consumption, l (element of (0,1)) is leisure time, and y is non-wage income. Prove that leisure must be a normal good for the labour supply function to be downward sloping. Please use direct methods and comparative stats.

### Payoff matrix, for two interdependent firms in duopoly

In the following payoff matrix, for two interdependent firms in duopoly: In the following payoff mat Produce Firm F DNP \$10 \$0 Produce -\$30 \$100 Firm H DNP \$120 \$0 \$0 \$0 My responses: a) What will firm F do and what will Firm H do? The only win situation for H is to produce and no production by

### It is being incorporated as more and more of a component to international trade due to the concept of importing and exporting of same good classification whereas inter-industry is with different classifications of goods. The traditional concept of comparative advantage will do little to predict intra-industry trade. However, the following areas do help to explain intra-industry trade:

Suppose that country A has only 3 categories of traded goods and that A's imports and exports of the 3 goods are as follows: Good Value of Exports Value of Imports X \$30 \$100 Y 60 20 Z 60 80 My responses by section: a) Calculate Country A's index of intra-industry trade. {30/150 - 100/200} + {60/150 - 20/200} + {

### Microeconomics Help

Find the production possibilities and comparative advantage Abe and Max are tailors. Their production possibilities tables for trousers and jackets are given below. Abe chooses production alternatives D, while Max chooses alternatives E from his alternatives. ABE: Production Possibilities Table Production Alternative