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I think you are overthinking this question. The price of a crypto-coin is whatever price it gets traded for. The value, or "market cap", is the current price of one coin times the number of coins in circulation. (or milli-coins, or ethers, or Satoshis, or whatever the currency's unit of measure is called) A cryptocurrency exchange is a place where people ...


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In Ricardian model prices depend also on consumer utility and demand. Without that it would be impossible to solve the model no matter what the goods are. However, this is usually not explicitly mentioned in bachelor level textbooks where all models are for better or worse described in overly simplified form as not to load too much on most students. In fact ...


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(My answer is based on what I learned from the answer and comments of user 1muflon1. This answer wouldn't be possible without their patient attempts to put some knowledge under my thick skull. Here I will pretend to be another person and address Past-Me as "You"). At first, let's start with intuition for why increased consumption implies increased PPF. ...


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For this you first have to put some numbers on the problem to be able to draw PPF and consumption. Lets assume that Cheestopia can produce 1 cheese at 1 labor, and 1 wine at 2 labor and Winetopia 1 cheese at 2 labor and 1 wine at 1 labor, and both country has 100L avaiable for production, this gives you the following PPFs for both countries in autarky (the ...


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In general one country cannot just print currency of other country. At least not legally, I suppose some countries could engage in counterfeiting. A country has to go to foreign exchange market where they purchase the currency of the other country first and then make the transaction in that currency. In practice the foreign exchange market is ‘accessed’ ...


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If you assume, as you have, that nothing is produced domestically, GDP, which stands for "gross domestic product" would be zero. There is no economic activity, so there's no production, and GDP for that year would be zero. One could argue, of course, that there's value added involved in transportation, etc., but I think that's not what you're after. To be ...


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GDP would not be zero in endowment economy in general. There are still prices and also interest rates, savings and investment in endowment economy. First, lets ignore other countries because foreign aid complicates GDP calculations (as Art pointed out if the endowment is foreign aid GDP would be zero). So lets suppose there is only one country, lets call it ...


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Your conclusion would be correct in pure endowment economy where there is no production $Y(L) =0$ (assuming only labor as factor of production) and everyone has the same endowments. In an endowment economy where there is no production and GDP is just dropped on both home and foreign country trade is indeed a zero sum game as $M$ subtracts from your endowment ...


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Both of your conclusions are correct. For #2, however, your example might have left something out. Consider a country that could not produce wine. By banning imports of wine, the country's net export would increase (a decrease in imports). However, this will also mean a reduction in consumption of wine as well. In fact, the increase in net exports of wine ...


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Take a country like Uganda, a net importer. Let's say that the government borrows foreign capital to finance a dam construction. Using the funds, it pays for construction materials, most of which are probably imported; it pays for the design of the dam, the architects and specialists are foreigners; construction companies purchase fixed capital stock (trucks,...


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