What is the main difference between the type of money that was ...

[cherise1989]

What is the main difference between the type of money that was used before the invention of the printing press and today?
 
  What will be an ideal response?

Question 2

Consider two individuals, Celia and Sondra, who produce bracelets and pendants. Celia's and Sondra's hourly productivity are as follows:
 
  Bracelets /hour Pendants /hour
  Celia 4 1
  Sondra 10 2
 
  Who has the absolute advantage or comparative advantage in the production of bracelets or pendants?

[joshraies]

Answer to Question 1

In the days before the invention of the printing press, most societies used something that is valuable itself as money, for example, gold, silver, chickens, and even goats. Today, in most of the world, money is fiat money. Fiat money refers to something that is used as money but is otherwise worthless and is typically backed by the government or the central bank of a country.

Answer to Question 2

Sondra has the absolute advantage in producing both goods, but Sondra only has comparative advantage in the production of bracelets, not pendants. Celia has a comparative advantage in the production of pendants. Sondra's opportunity cost of a bracelet is 1/5 of a pendant, and her opportunity cost of a pendant is 5 bracelets. Celia's opportunity cost of a bracelet is 1/4 of a pendant, and her opportunity cost of a pendant is 4 bracelets.

[cherise1989]

Thank you

[joshraies]

Happy to help you