Answer:
Policies consistent with the goal of increasing productivity and growth in developing countries are:
1. Protecting property rights and enforcing contracts
2. Providing tax breaks and patents for firms that pursue research and development in health and sciences
Explanation:
To increase productivity and growth in developing countries, it is important that developing countries enhance the mechanisms for protecting property rights and enforcing contracts. These are the bases for attracting more foreign direct investments. The court system should be a system where justice is obtained and a system which can enforce the rights of individuals to own property. Without this basic ingredient, foreign direct investments will be hard to attract.
A and c because jack knows how to do his work
Education is considered as an investment in human capital. Human capital can be described as the knowledge, abilities and skills of an individual, acquired through education, training and experience, which help the latter to be more productive and thus improve his potential income earning.
Answer:
Xia Co.
1-a. The relevant costs for Xia Co. to make or buy the part:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
1-b. Xia should make the part. It will cost Xia $4.00 to make the component while it costs it $5.00 to buy. It should therefore, make the component.
Explanation:
a) Data and Calculations:
Price of buying component = $5
Cost of making component:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
b) The relevant cost for making the component is $4.00. The overhead cost based on 200% direct labor is not a relevant cost. It is an allocated fixed cost and must be incurred whatever decision is taken. By making the component, Xia Co. will be netting in a unit contribution of $1 ($5.00 - $4.00) with the alternative of buying.
