Distinguish between of trade and the balance of trade, Microeconomics

Assignment Help:

Distinguish among the terms of trade and the balance of trade for a country.

Definition of terms of trade

a) The amount of a given amount of export goods essential to buy a given amount of import goods

b) Barter or commodity terms of trade, i.e. quantity of Volvos per quantity of Toyotas

Explanation of trade balance

a) Price of exports times quantity of exports equals export revenue

b) Price of imports times quantity of imports equals imports spending

 


Related Discussions:- Distinguish between of trade and the balance of trade

Baumol tobins inventory model, Under specified assumptions, derive the squa...

Under specified assumptions, derive the square-root formula of the Baumol-Tobin's inventory model of transactions demand for money and briefly describe the effect of a one period i

Economic cycle, Economic Cycle The economic cycle is the long-standing...

Economic Cycle The economic cycle is the long-standing sample of alternating times of economic growth (expansion) and decline (recession), followed by changing economic indica

Taxing system, On what kind of income is our taxing system based?

On what kind of income is our taxing system based?

What are the configuration possibilities, 1. Why is a proprietary good nec...

1. Why is a proprietary good necessary for a firm to choose to become a multinational? 2. In Ramondo, Rappoport, and Ruhl (2011), "Horizontal vs. Vertical FDI: Revisiting Evi

Describe the lucas supply function, Problem 1 : (a) What are the main a...

Problem 1 : (a) What are the main assumptions behind the macroeconomic theory of New Classical Economists? (b) Describe the Lucas Supply function and explain its policy imp

What is tradeable product, Q. What is Tradeable product? Tradeable:A pr...

Q. What is Tradeable product? Tradeable:A product (a service or good) is tradeable if its purchaser can purchase it far away from the place where it is produced. Most goods (ot

Measures to control inflation, Measures to control inflation: Fiscal po...

Measures to control inflation: Fiscal policy is one of the two main macroeconomic policies used to control aggregate demand and thereby achieve economic stability. Fiscal meas

Total cost function, A firm's production function is given by Q = √LK . Th...

A firm's production function is given by Q = √LK . The price of labour is w and the price of capital is r. a. The price of labour is $5 and the price of capital is $20. What is

\, Select the production possibilities curve for an economy with 42 units o...

Select the production possibilities curve for an economy with 42 units of labor

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd