Sunday
April 20, 2014

Homework Help: Int. ECO

Posted by Powers on Wednesday, February 13, 2013 at 2:16am.

1. Suppose just trade determines the strength of a currency. A country imports Good I and exports Good X. Because of international conditions, the price of Good I has risen 25%, while the country’s domestic production of Good I has stayed the same. The price of Good X has stayed the same as has the production level of Good X in the country. Consider the commodity terms of trade and answer the following for the country.
(a) If the quantity of its exports stays the same, what happens to the quantity of its imports?
How does this affect the level of wellbeing (satisfaction/utility) in the country? Why?
(b) If the quantity of its imports stays the same, what happens to the quantity of its exports?
How does this affect the level of wellbeing (satisfaction/utility) in the country? Why?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Socials - How did work camps and tariffs effect the Great Depression? What were ...
eco/372 - is the effect of trade on the economic growth is it an example of ...
C# - 5) Suppose you have declared an integer array named scores and you make the...
eco 205 - Where can i find information on the strength of CPI and why we use it ...
eco/372 - what are the positives and negatives of protectionst trade polices on ...
Physics - A charge of 1nC is added to a spherical soap bubble with a radius of 3...
History 108 (paper due tonight) - What economic basis did the slave trade have ...
computer science - int *reverse(const int *, int); int *temp; temp = reverse(...
international trade - 2. Consider two countries, Home and Foreign. Assume that ...
computer - If int main() { int a=1; int *p; how do the following statements ...

Search
Members