Voluntary exchanges happen when both parties expect to receive a gift that is better than the gift they already gave to somebody.
If your in K12, the answer is gain.
Answer:
Explanation:
Here Nicolas will gain comparative advantage only when he is selling the good he is specializing in and he would specialize in that good which would have lower opportunity cost for him. So the first step that we have to do here is to find out for which good Nicolas will have lower opportunity cost.
For Nicolas who in 8 hours can either catch 24 pound of fish or repair 15 cars,
the opportunity cost for catching 1 fish is = 15/24 = .625
the opportunity cost for repairing 1 car is = 24/15 = 1.6
So from the above observation we can say that for Nicolas catching fish has lower opportunity cost for him , so he should specialize in catching fish.
Therefore the term of trade for Nicolas would be
1 fish = .625 cars ,
if he can catch and sell 100 units worth of fish then he would have to give up 62.5 cars and then only he will gain from trade,
1 x 100 fish = .625 x 100
100 fish = 62.5 cars.
Answer:
Empathy is important because it awakens our senses as designers.
Answer:
the journal entry to record bond issuance:
Dr Cash 1,444,000
Dr Discount on bonds payable 76,000
Cr Bonds payable 1,520,000
amortization of discount on bonds payable = $76,000 / 5 = $15,000
coupon payment = $91,200
total interest expense per year = $106,200
total interest expense for the 5 year period = $106,200 x 5 years = <u>$531,000</u>
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Answer:
(receive higher wages that reflect an increase in their value of marginal product.)
