economics paper 1.. how was it

[0303]

Could anyone let me know the answer of the Bop current account question which contained, invisibles, visibles, transfers And income ?

 

[0303]

And the least likely effect of free trade ?

 

[username!]

i chose the "free trade increases job opportunities" cuz the remaining seem to be direct effects of free trade.

 

[khalid]

And the least likely effect of free trade ?

option D cost of production wala

i chose the "free trade increases job opportunities" cuz the remaining seem to be direct effects of free trade.

free trade sae job oppotunities increase hoin gan

 

[XYZ]

I selected B for that Jamaica question. Was confused between B and D. I thought of changing the answer to D but didn't =(

 

[mzzzz]

bhai specialisation leads to economies of scale and lower costs of production
however, it enables increasing usage of machinery so jobs are least certain to increase

 

[JT ite]

NO, trade does not decrease cost of production, there would be other factors involved, whereas trade would always create new jobs since even factor movement isnt restricted and it is not cutting any jobs

that jamiaca one was B, Supply would increase

 

[khalid]

firms need to lower their cost of prodution but using machinery is not the ulimate way to do. labour can cheaper than capital, so their will be incerase in jobs, why did examier two different option of (D).cost of production and(A) specializtion.

 

[mzzzz]

hahaha wateva
free trade means trade creation
n trade according to comparative advantage
costs of production will lower because of economies of scale ie production at a greater scale
btw i juz chcked my notes
n there is not even a hint of employment factor in the advantages of free trade

 

[khalid]

option B and C were totally out of question, jobs will increase, de option left behind was D. cost of production, least gain from trade

 

[mzzzz]

okay so wat if the economy was already operating at ppc tht is full employmnt b4 trade?

 

[mzzzz]

http://www.economicshelp.org/trade/bene ... trade.html

 

[khalid]

he asked least gain of trade to an economy and dat was cost of production wala option. he didnt ask abt de benfit and which will become more better after trade

 

[mzzzz]

so the link i posted above clearly states tht economies of the scale results from free trade
employmnt is not even mentiond
its least certain

 

[khalid]

and dere was no option abt economies of scale.its abt international trade and compararive advantage .. he just asked about trade

 

[metalgod90]

gains from free trade outweigh any losses as free trade creates more jobs than it destroys because it allows countries to specialize in the production of goods and services in which they have a comparative advantage. from wikipedia
http://en.wikipedia.org/wiki/Protectionism#Arguments_against_protectionism

free trade leads to eco growth and resulting frm tht r higher wages for workers in most cases , higher standard of living and HIGHER COST OF PRODUCTION ... so lower cost of production frm free trade is the most uncertain effect .. ans was D

 

[ahsanxr]

One of the arguments against free trade is that it might create unemployment in the domestic economy, whereas lowered costs of production is a certain effect because countries specialize in producing what they are good at and what it is cheaper for them to produce.

 

[khalid]

question was not about international trade .. it was about trade, which can be betwee two people. arguements supporting or pposing international trade were not be considerded in dis question

 

[0303]

And what about the ans of bop current account?

 

[khalid]

And what about the ans of bop current account?

reserves wala option