Is there an opportunity for beneficial exchange

Assignment Help Business Economics

Reference no: EM13742766

In World War II, a German POW camp guard exchanged bread and chocolate with prisoners at the rate of one loaf for one chocolate bar. Inside the POW camp, the price was 15 cigarettes per chocolate bar, and 40 cigarettes per loaf of bread. Is there an opportunity for beneficial exchange?

With the guard, a POW could exchange three chocolate bars for _____ loaves of bread. In the camp, the POW could exchange the loaves for _____ cigarettes, and then exchange the cigarettes for _____ chocolate bars. In other words, the POWs net gain from trade is _____ ?

Reference no: EM13742766

Questions Cloud

Bank deposits-what can the fed do to lower the money supply : Assume that bank deposits (D) are $3,200 billion, the required reserve ratio is 10%, and currency in circulation is $400 billion. What can the Fed do (in terms of open market operations) to lower the money supply by $100 billion? Explain. (Note assum..

Discuss the importance of florida in early america : Discuss the importance of florida in early America.

Explain state of finances or economic system of your society : State of the finances or economic system your understanding of the financial position or economic system of your society.

Assume the money supply : Assume the money supply (M) is $1,200 billion, bank deposits (D) are $800 billion and the required reserve ratio is 10%. What would the Fed have to do (in terms of open market operations) to lower the money supply by 5% ? Explain.

Is there an opportunity for beneficial exchange : In World War II, a German POW camp guard exchanged bread and chocolate with prisoners at the rate of one loaf for one chocolate bar. Inside the POW camp, the price was 15 cigarettes per chocolate bar, and 40 cigarettes per loaf of bread. Is there an ..

Determine the accounting profit of the business : You are an economic analyst and one of your clients is your Aunt Ginger. You have not met with her for a year, and she has just closed the books on her first year in business. Her accountant has informed her that she made a substantial profit, and sh..

Defend your position using economic principles : Should price increases for products in demand be allowed during extreme times of demand ( e.g.; bags of ice, water or hotel rooms during a hurricane crisis)? Defend your position using economic principles?

Evaluate current or future applications of biotechnology : Evaluate current or future applications of biotechnology in the fields of medicine or agriculture

What is current real exchange rate between two countries : The current exchange rate between the Japanese yen and the U.S. dollar is 120 yen per dollar. At current prices, a basket of goods that costs $100 to produce in the U.S. would cost ¥11,000 to produce in Japan. What is the current real exchange rate b..

User Account

All Pages