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sukhopar [10]
2 years ago
10

if both producers decided to trade with each other to stock their toy stores, the terms of trade that would benefit both geppett

o and lewis (1 puppet
Business
1 answer:
True [87]2 years ago
7 0

They would be willing to trade in the range of 2 puzzles per puppet to 5 puzzles per puppet.

Trade between two agents or countries allows the countries to enjoy the next total output and level of consumption than what would be possible domestically. Canada and Mexico can each specialize in the great they need a comparative advantage in and exchange with each other.

The terms of trade are dependent as long as they're between the 2 countries' opportunity costs. As an example, any amount of greater than 1/3 and fewer than 1 traded for 1 cotton shirt would represent interdependent terms of trade. The gains from trade are only supported by comparative advantage, not absolute advantage.

A person can have an absolute advantage in both goods or activities, and yet still gain from trade by specializing within the good or activity during which it's a comparative advantage. The theory of comparative advantage holds that whether or not one nation can produce all goods more cheaply than can another nation, both nations can still trade under conditions where each benefits.

Under this theory, what matters is relative efficiency. Even when one country has an absolute advantage altogether products, trade can still benefit either side. This can be because gains from trade come from specializing in one's comparative advantage.

learn more about trade: brainly.com/question/24473707

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Lists two things that both increase the money supply?
DENIUS [597]

Answer:

Decrease is taxes

Increase in government spending

Explanation:

Government policies that increases the money supply in an economy is known as expansionary fiscal policy. They are:

1. Decrease is taxes - when government reduces the tax rate, the amount paid as taxes falls and as a result individuals, companies have higher disposable income whuch can be used for consumption or saving. This increases the money supply in the economy.

2. Increase in government spending - if the government increases it's spending on public goods for example, money supply would increase. If the government constructs a road, labour would be employed and paid wages. This payment increases the income of Labour and money supply increases.

Central bank policies that increases money supply are known as expansionary monetary policies. They include:

1. Open market purchase: The central bank purchase securities from the open market to increase money supply.

2. Reduction in reserve requirement ratio : if the reserve requirement ratio is reduced , commercial banks would have more money to give out as loans and this would increase money supply.

6 0
3 years ago
You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $65.74 for one share of the stock
iogann1982 [59]

Answer:

dividend payment = $6

Explanation:

given data

sell = $65

pay = $65.74

require a return =  8%

solution

we will use here present value formula that is express as

current stock price ( present value ) = \frac{future\ value}{1 + rate}  ........................1

$65.74 = \frac{65+d}{1+0.08}

here d is dividend

solve it we get

d = $6.00

so dividend payment = $6

6 0
3 years ago
For the year ended December 31, Year 1, Fields Company made cash payments of $61,600 for dividends, paid interest of $30,400, pa
Yanka [14]

Answer:

D. $77,600

Explanation:

The $77,600 made to purchase equipment would be reported as a cash outflow in the investing activities section. This is because asset purchased such as equipment is an investment while the cash used to purchase the asset is regarded as cash outflow.

Dividends are recorded in the financing section, while cash paid for interest and paid to suppliers would be recorded in the operating activities.

4 0
3 years ago
If markets are efficient, what should be the correlation coefficient between stock returns for two nonoverlapping time periods?
S_A_V [24]

Answer: Zero

Explanation:

The Correlation Coefficient measures the relationship between 2 variables under study and ranges from -1 to +1 which -1 meaning that the two are perfectly negatively correlated and +1 meaning they are perfectly positively correlation. A Correlation Coefficient of 0 means that there is no relationship.

An efficient market is one where all information is available to every market participant. This means that one cannot use information from one period to make abnormal profits in another period because all information is available. The Correlation Coefficient will therefore show 0 because information from the previous period is not being used in another period meaning there is no relationship between stock returns.

7 0
3 years ago
Jim is the new manager of operations at Springfield Motors. To his dismay, he finds the employees coming in late to work, taking
alisha [4.7K]

Answer:

The correct answer is letter "B": Positive reinforcement and punishment.

Explanation:

In the Operant Conditioning Method proposed by B.F. Skinner (1904-1990), positive reinforcement refers to the set of actions individuals do to increase the behavior of other individuals. On the other hand, positive punishment aims to decrease behaviors in individuals by prompting undesirable stimuli.

Thus, <em>Jim is implementing positive reinforcement through incentives for workers meeting certain corporate goals and positive punishment by withholding those incentives from employees who get late, take long breaks or act unprofessionally</em>.

6 0
3 years ago
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