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Ad libitum [116K]
3 years ago
8

Suppose that a worker in agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in zen

land can produce either 5 units of organic grain or 15 units of incense per year. there are 20 workers in agland and 10 workers in zenland. currently the two countries do not trade. agland produces and consumes 100 units of grain and 20 units of incense per year. zenland produces and consumes 50 units of grain and no incense per year. if each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by
Business
1 answer:
Likurg_2 [28]3 years ago
5 0

Answer: d). 50 units of grain and 130 units of incense.

Explanation: Comparative advantage for a country exists when it has a lower opportunity cost of producing a good as compared to the other country.

As given in the problem, a worker in agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in zenland can produce either 5 units of organic grain or 15 units of incense per year.

This, means that opportunity cost of producing organic grain in Agland is 0.2 i.e (2/10) and that in Zenland is 3 i.e (15/5). Thus, clearly Agland has a lower opportunity cost in production of organic grain. Thus, it will specialise in organic grain production , producing a total of 200 units of organic grain i.e (10*20 workers).

Similarly, Zenland has a lower opportunity cost in incense production which is 0.33 i.e(5/15) in comparison to 5 i.e(10/2) of Agland. So, Zenland will produce only Incense making a total of 150 units of incense (15* 10 workers).

Thus, before trade total organic grain produces was

100+50 = 150 units

Before trade incese produced was,

20+0=20 units

While, after trade the two countries produce a total of 200 units of organic grain and 150 units of incense.

Thus, increase in organic grain production is 200 - 150 = 50 units and of incense is 150-20 = 130 units

Thus, the correct answer is 50 units of grain and 130 units of incense.

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Answer:

False

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Explanation:

<em>Equivalent units are notional whole units which represent incomplete work and are used to apportion cost between work progress and completed work. These units are determined as follows:  </em>

Equivalent units = Degree of work done(%) × units of inventory

Item                                          unit                                    Equivalent unit

Opening inventory            10,000    50% ×  10,000                 5000

Fully worked unit                  80,000     100%× 80,000              80,000

Closing inventory              20,000       20% × 20,000              <u>4,000</u>

Total equivalent units                                                              <u> 89,000</u>

<u />

<u>Notes:</u>

<em>1. Fully work represent units started and completed in the same period. They exclude the opening inventory.</em>

<em>Fully worked = 90000- 10,000 =80,000.</em>

<em>2. Note also at that the degree of completion</em> for opening inventory is the simply the balance of work remaining to be done.

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When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a bla
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Explanation:

MLS stands for Multiple Listing or Multiple Listing System. MLS is such a service that is built to assist various brokers in reviewing the lists of various properties in different areas. This list help others purchase their own property to their taste as well as sell their properties.

Under new regulations, when a seller permits a broker to send property to MLS, the broker can make a unilateral blanket bid to agree to accept or refuse all members of that MLS sub-agency.

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If aggregate planned expenditures in the economy increase by $100 million, then real GDP will _____ $100 million.
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Answer:

Real GDP will rise by $100 million

Explanation:

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Aggregate Supply [AS] is total amount of goods & services, all sellers are planning to sell. As total output value of goods & services produced is distributed among factors of production, AS = National Income [NY] = GDP

At equilibrium : AD or APE =  AS or NY or GDP

If AD or APE increases by $100 million :

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