Capitalism is indeed an economic system in which privately owned businesses and individuals attempt to make a profit in the free market. The aspects of private ownership of businesses and working for profit are essential factors of capitalism as a theory and also as it is practiced.
Answer:
15%
Explanation:
If Miranda works 40 hours a week at a wage rate of $25. and she however calculates that on the last hour that she works, she pays $3.75. then her marginal tax rate is derived as follows
<em>The marginal tax rate is the incremental tax paid on incremental income.</em>
From the scenario, we are given the following:
Weekly wage rate is $25.
Weekly tax pay is $3.75
Hence, Marginal tax rate can be computed as = $3.75 / $25 = 15%
Answer:
4.53%
Explanation:
Data provided in the question:
Expected return = ∑ (Return × probability)
Thus,
Expected return = (0.06 × 22) + (0.92 × 13) + (0.02 × (-15))
= 12.98%
Now,
Probability Return Probability × (Return-Expected Return)²
0.06 22 0.06 × (22% - 12.98%)² = 4.8816
0.92 13 0.92 × (13% - 12.98%)² = 0.000368
0.02 -15 0.02 × (-15% - 12.98%)² = 5.657608
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Total = 20.5396%
Standard deviation = 
= √(20.5396)
= 4.53%
Answer:
Georgeland has an absolute but not a comparative advantage in producing clothing.
Explanation:
Absolute advantage is defined as the ability of a firm to produce higher amounts of a product as a result of use of the same resources with other competitors. It is usually bad a result of more efficient production process.
Comparative advantage is the ability of a firm to produce goods at a lower opportunity cost. Therefore they are able to sell at lower price compared to competitors.
Georgeland can produce 18 units of clothe per year while Alland can produce 16 units per year, so Georgeland has absolute advantage.
In producing clothes Georgeland has opportunity cost of 36 units of food which is higher than that of Alland which is 32 units of food. So Georgeland does not have comparative advantage in producing clothes.
