Author Topic: IGCSE ECONOMICS DOUBTS HERE !!!!  (Read 5435 times)

Offline Star xD

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Re: IGCSE ECONOMICS DOUBTS HERE !!!!
« Reply #15 on: October 17, 2011, 06:33:44 pm »
Comparative is when a country has a reletive advantage of producing one good , when compared with another county. If a country can produce good X giving up less of another ,say good Y ( low opportunity cost in producing X) than another county , then that country is said to hav a comparative advantage. In comparative advantage we only see how much should be given up to produce another, not how much it can produce.

if u tried any specific question & find it difficult to understand plz post it here , i might be able to help u more then

No, actually it went over my head the minute I read it.
Thanks, I get it now. :D
But then, how is it different from absolute advantage? 'Cause in it A country has absolute advantage if it uses lesser resources than another country to produce another product right? The difference confuses me  ???

Offline Dasith

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Re: IGCSE ECONOMICS DOUBTS HERE !!!!
« Reply #16 on: October 18, 2011, 03:07:23 pm »
No, actually it went over my head the minute I read it.
Thanks, I get it now. :D
But then, how is it different from absolute advantage? 'Cause in it A country has absolute advantage if it uses lesser resources than another country to produce another product right? The difference confuses me  ???

welcome :D,

well Absolute advantage is when Say "country X" & "country Y" are given the same amount of resources & assumed to be @ same technological level.

IF "country X" could produce a product more than "country Y" could produce with the same amount of resources , "country X" is said to have an absolute advantage in Production of that good.
IN comparative advantage like i told u , we do not see if a country could produce more than another country , but we check how much of production of another good is given up in order to produce this product.

lets take a simple example:

Say the US & Chinese Produces Weapons & Toys; given the same amount of resources.
China produces more of both weapons & toys than US. Under the absolute advantage theory these two countries find no advantage in trading.
But suppose China has to give up a lot of toys in order to produce a single weapon & on the other hand US has to give up More weapons to produce a single toy.

These two countris can still trade under comparative advantage theory . US produces Weapons ( as it could produce more weapons by giving up toys rather than the other way around)
 China can produce toys because it can produce more toys by giving up weapons.
I would love to change the world, but they won't give me the source code. ;)

Offline Star xD

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Re: IGCSE ECONOMICS DOUBTS HERE !!!!
« Reply #17 on: October 18, 2011, 05:11:04 pm »
Thanks a lot, I understood it now!
+rep :)

Offline imrohan

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Re: IGCSE ECONOMICS DOUBTS HERE !!!!
« Reply #18 on: October 27, 2011, 02:15:43 am »
I've got my economics exam in about 5 hours. I'm so scared that I've got up early and im revising again and again! Can anyone please tell me the likely questions coming in the ppr?

Offline Dasith

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Re: IGCSE ECONOMICS DOUBTS HERE !!!!
« Reply #19 on: October 27, 2011, 02:48:54 am »
main areas tested are on inflation, ( i'm not sure about igcse but these topics are for CIE , i guess they might test the same for IGSCE too
                                  BOP
                                  Economic growth
                                  Demand / supply theories(advanced)
                                  Wage rate / determination in different markets etc
                                  International trade

& best of luck , for your exam , hope u do your best
I would love to change the world, but they won't give me the source code. ;)

Offline Zaidhan

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Re: IGCSE ECONOMICS DOUBTS HERE !!!!
« Reply #20 on: July 31, 2014, 02:16:08 pm »
Discuss whether a change in the occupational structure of a country would be beneficial for the economy. [10]?