Answer:
Portugal has comparative advantage in producing olives.
Switzerland has comparative advantage in producing fish.
Portugal can gain from trade if it receives more than 3 pounds of fish per crate of olives.
Switzerland can gain from trade if it receives more than 1/11 of olives for each pound of fish.
d. 18 pounds of fish per crate of olives.
Explanation:
Switzerland and Portugal both countries can produce Olives and fish. One country has advantage in producing fish while other has advantage in producing olives. Both countries can gain from trade if they find a intermediary way so that both countries can be in win win situation. It is beneficial for Portugal if it trades with Switzerland if it receives more than 3 pounds of fish.
Portugal has a comparative advantage in producing olives while Switzerland in producing fish. For mutual benefits, Portugal should receive more than 3 pounds of fish per crate of olives and Switzerland should receive more than 1/11 crate of olives per pound of fish. The optimal price of trade is a. 6 pounds of fish per crate of olives.
Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. In this case, Portugal has a comparative advantage in the production of olives given that its opportunity cost (3 pounds of fish) is lower than that of Switzerland's (11 pounds of fish). Consequently, Switzerland has a comparative advantage in the production of fish since by concentrating on producing fish, it gives up less in terms of olives than Portugal does.
For trade to be beneficial for both countries, Portugal should receive more than 3 pounds of fish for every crate of olives it exports to Switzerland - this is higher than the opportunity cost of producing olives domestically. Similarly, Switzerland should receive more than 1/11 crate of olives (since its opportunity cost is 11 pounds of fish per crate of olives) for every pound of fish it exports to Portugal.
Considering these conditions, from the available prices of trade, the option that allows both countries to gain from trade is a. 6 pounds of fish per crate of olives. This price is more than Portugal's opportunity cost of 3 and less than Switzerland's of 11.
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Answer:
C. $400,000
Explanation:
The computation of the gross profit is shown below:
Gross profit = Net Sales - costs of goods sold
= $500,000 - $100,000
= $400,000
For determining the gross profit, we deduct the costs of goods sold from the net sales, so that the true value can come. It is shown in the income statement
All other information which is given is not relevant. Hence, ignored it
Answer:
13.77 years
Explanation:
The maturity period is the period taken for the Bonds' Market Price equals its Face Value.
Calculation of the maturity period :
PV = - $394.47
PMT = $0
YTM = 6.87 %
P/YR = 2
FV = $1,000
N = ?
Using a financial calculator to input the values as above, the number of periods interest is accrued on the bond (N) is 27.54 thus the number of years will be 13.77 (27.54 ÷ 12) .
Borrow $4,500.
Repay $5,500.
Repay $4,500.
Borrow $5,500.
Answer:
Borrow $19,500
Explanation:
The movement in the cash balance between the beginning an end of a period may be expressed as
opening balance + cash collection - cash disbursed = closing balance
As such, where the company has $11,000 cash at the beginning of June and anticipates $31,000 in cash receipts and $36,500 in cash disbursements during June, the expected closing balance
= $11,000 + $31,000 - $36,500
= $5,500
If the company is owing the bank $15,000 then the company would still owe
= $5,500 - $15,000
= ($9,500)
If the company is expected to maintain a balance of $10,000, the amount to be borrowed must be $10000 in excess of the amount owed the bank. Hence amount to be borrowed
= $10000 + $9500
= $19,500
Multiple Choice:
O Regardless of whether the division is evaluated on the basis of ROI or Residual income, the manager will not accept the new investment because it is bad for the company.
O If the division is evaluated on the basis of Residual income, the manager of the office product division would not accept the new investment because it is bad for the company.
O If the division is evaluated on the basis of Residual income, the manager of the office product division would accept the new investment because it is good for the division.
O If the division is evaluated on the basis of ROI, the manager of the office product division would accept the new investment because it is good for the division.
O If the division is evaluated on the basis of ROI, the manager of the office product division would not accept the new investment because it is bad for the company.
Answer:
The true statement is that If the division is evaluated on the basis of Residual Income, the manager of the office product division would accept the new investment because it is good for the division
Explanation:
In order to find out which of the following statements is TRUE given that the company's minimum required rate of return is 10%, we would have to calculate the existing residual income and the post investment residual income as follows:
Existing Post Investment
Income $ 11,250 $15,625
Assets $75,000 $110,000
ROI 15% 14%
Charge on capital $ 7,500.0 $11,000.0
Residual Income $3,750.0 $4,625.0
Given that the Existing Residual Income is $3,750.0 and the Post Investment Residual Income is $4,625.0 If the division is evaluated on the basis of Residual Income, the manager of the office product division would accept the new investment because it is good for the division.
Changing the U.S. currency system could destabilize the economy.
The Federal Reserve helps stimulate economic growth during depressions and recessions.
The Fed worsens economic depressions.
Poor management by the Fed has led to two major financial crises in the U.S. in the last 100 years.
The Federal Reserve is best equipped to supervise large firms and banks.
A more independent financial market is generally healthier and more stable.
The Fed does not have the knowledge necessary to make good decisions about interest rates.
The Federal Reserve uses its policy tools to carry out monetary policy, which largely affects employment and inflation. Yet regardless of how it may sound, it usually comes down to changing the amount of money available in the market to produce a particular level of inflation.
The Fed increases interest rates to reduce aggregate demand and slow the flow of money through the economy. Higher interest rates will result in less demand for products and services, which should result in reduced prices for those things and services.
She warned before of the Fed meeting that it would continue to rapidly hike rates if inflation remained stubbornly high. According to this scenario, housing prices could increase to 8% or more in the latter part of 2022 and the beginning of 2023.
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Answer:
According to the OECD the total expenditure of the US government, including state and local is about a 38% of the GDP.
Explanation:
The federal government expends almost the 55% of the total and the remaining 45% the state and local government.