Answer: C- Alzania's neighbor exported half its production of cotton that year
Explanation: Alzania produces and consumes 500,000 tons of cotton during a year. While, the neighbor which also employs the same number of people in the cotton industry, consumed 400,000 tons of cotton. There is no information on production of the neighbor. Just by looking at the consumption units we can argue that Alzania has an absolute advantage over the neighbor as it consumes more. However, if there is any information on the amount of exports of cotton from the neighbor then it will weaken the absolute advantage conclusion.
Thus, if <em>Alzania's neighbor exported half its production of cotton that year </em>the total production of cotton is greater of the neighbor than Alzania.
Answer: (D) More will be able to pay for that product
Explanation:
Answer:
$4,238.05
Explanation:
The computation of the present value is shown below:
Years Cash flows Discount factor @7% Present value
1 $850.00 0.9345794393 $794.39
2 $1,190.00 0.8734387283 $1,039.39
3 $1,450.00 0.8162978769 $1,183.63
4 $1,600.00 0.762895212 $1,220.63
Total present value $4,238.05
Answer:
Remain constant.
Explanation:
As Spain produces more digital cameras and fewer camcorders, the opportunity cost of producing each additional digital camera <u>remain constant. </u>
Production possibility frontier is a curve that show how different combination of product are produced using limited resources. It demonstrate that how production of one goods need to be decreased to produce higher number of other goods.
Opportunity cost is constant, as tradeoffs are the same regardless of where you are on the line, same slope at any point.
