<span>The characteristic that describes privatization of Social Security is option C) enables Americans to invest their Social Security Contributions in the stock market. This is the most accurate option but still not wholly accurate. There are different proposals for privatizing. Most would have the existing funds used to buy into the market and then the individual person would have different options for how their own funds were then handled within the market. For instance they could take over control of their fund and buy/sell their various shares. Or they could move their shares to be handled by an investment company, or even just leave them in the original shares that were bought by the government during the transition to privatization. Bottom line, the individuals would have some control of there shares in the stock market.</span>
Answer:
Ten pounds of chicken to trade for at least <u>40</u> pounds of vegetables but not more than<u> 50</u> pounds of vegetables
Explanation:
Vegetables Chicken Trade Off Ratio
John 40 10 4:1 (40/10) or 1:0.25 (10/40)
George 25 5 5:1 (25/5) or 1:0.20 (5/25)
John has comparative advantage in Chicken and George has comparative advantage in Veggies because :
- John's chicken opportunity cost, in veggies < George (4<5). George's veggies opportunity cost, in chicken < John (0.20<0.25).
- George is more (5X) productive in veggies than chicken, than John (4X). John is less unproductive in chicken than veggies (1/4th), compared to George (1/5th).
So, John will sell Chicken to George & George will sell veggies to John. Gains from trade are when each get trade ratio better than their their own trade off ratio.
- It implies: John gets >' 4 pounds veggies per chicken pound' and George gets > '0.20 pound chicken per veggie pound'.
- Unitary method:- '1chicken : 4veggies' = '10chickens : 40veggies' and '0.20chicken : 1veggie' = '10chickens : 50 veggies' .
Answer:
Explanation:
United States is producing 200 tons of hamburgers and 60 tons of tacos.
United States' opportunity cost for producing 1 ton of hamburgers
= 
= 0.3
United States' opportunity cost for producing 60 tons of tacos.
= 
= 3.33
So we see that US has a lower opportunity cost in producing hamburgers, so it has a comparative advantage in producing hamburgers.
Mexico is producing 40 tons of hamburgers and 50 tons of tacos.
Mexico's opportunity cost of producing a ton of hamburgers
= 
= 1.25
Mexico's opportunity cost of producing a ton of tacos
= 
= 0.8
So we see that Mexico has a lower opportunity cost in producing tacos, so it has a comparative advantage in making tacos.
Since US specializes in making hamburgers, it will produce 200 tons of hamburgers and 0 tons of tacos.
Mexico specializes in making tacos, it will produce 50 tons of tacos and 0 tons of hamburgers.
Answer:
ASSURANCE should go in the blank.
