Answer:
Eric's opportunity cost of typing pages is <u>$25</u> per page.
Based on all of these facts, <u>Deborah</u> has a comparative advantage in typing pages.
Explanation:
Eric's opportunity cost of typing is $500 / 20 pages = $25 per page.
Since's Deborah's opportunity cost of typing pages is 20% less than Eric's, then she has a comparative advantage in typing pages.
The person, business or country with the lowest opportunity cost has the comparative advantage in producing that good.
Answer:
d) Quantify potential credit losses
Explanation:
Credit risk is the possibility of a loss happening because of a borrower's failure to payback a loan or meet up with contractual obligations. The overaching purpose of credit risk analysis is the quantification of the level of credit risk that the borrower poses to the lender. The purpose of credit analysis is to determine if borrowers are credit worthy by quantifying the risk of loss that the lender may experience.
Therefore option D is the answer.
Answer:For example, the Ricardian model of trade, which incorporates differences in technologies between countries, concludes that everyone benefits from trade, whereas the Heckscher-Ohlin model, which incorporates endowment differences, concludes that there will be winners and losers from trade.
