A country with an absolute advantage over another country achieves this if their production costs are lower.
Absolute advantage means a company or individual out perform another more efficiently. In this case, if two companies are making a product and one selling them for the same price, but one company can make the product for cheaper, they have an absolute advantage.
Answer: $156
Explanation:
The gross domestic product is referred to as the value of the final goods which a particular country produces for that economy.
Based on the information given, the GDP will be calculated as:
GDP = C + I + G + X - M
where C = consumption = $120
I = Investment = $25
G = government purchases = $15
X = exports = $8
M = imports = $12
GDP = C + I + G + X - IM
GDP = $120 + $25 + $15 + $8 - $12
GDP = $156
Both the satisfaction of creating new products and the possibility of earning money are INCENTIVES for an entrepreneur.
Answer:
$157,300
Explanation:
The computation of the interest capitalized is as follows:
= Accumulated expenditure × rate of interest
= ($610,000 × 12 months ÷ 12 months) + ($1,800,000 × 4 months ÷ 12 months) + 0 × 13%
= ($610,000 + $600,000) × 13%
= $1,210,000 × 13%
= $157,300
