Usually management, owner or department manager do the inverviews
Answer:
The consumer price index is used to measure the quantity of goods and services that the economy is producing.
Explanation:
CPI or consumer price index is a measure of changes in the average prices of a basket of products and services in a given time. The selected goods and services are a fair representation of consumption expenditure in the economy. Economists use the CPI as a Macroeconomic indicator of inflation.
As a measure of inflation, the CPI statistics communicate increases or decreases in the prices of goods and services in the economy. It forms a basis for policy decisions by the government that aid in the prevention of reduced purchasing power of the dollar. CPI is all about changes in prices and nothing to do with the production of goods and services.
Answer:
a. For each country, graph the production possibilities frontier. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graphs.
b. Who has the comparative advantage in the production of shirts? What about for computers?
- China has the comparative advantage in the production of shirts, while the US has the comparative advantage in the production of computers.
c. If these countries were open to trade, which country would export shirts? Give a specific numerical example and show it on your graphs. Which country would benefit from trade?
- China would export 50 million shirts in exchange for 5 million computers (or more if they can). Trade would benefit the US since it will only need to trade 5 million computers in exchange for 50 million shirts, and it will still have 15 million computers that it can consume or trade with come other country.
d. Explain at what price of computers (in terms of shirts) the two countries might trade.
- the minimum and maximum prices would be 5 to 10 shirts per computer. If the price of shirts per computer is 10 or near 10, then the US wins more. If the price of shirts per computer is 5 or near 5, then China wins more.
Explanation:
opportunity cost of producing 1 shirt in the US = 20/100 = 0.2 computers
opportunity cost of producing 1 computer in the US = 100/20 = 5 shirts
opportunity cost of producing 1 shirt in China = 10/100 = 0.1 computers
opportunity cost of producing 1 computer in China = 100/10 = 10 shirts
without trade:
- total production of shirts in the US = 50 million
- total production of computer in the US = 10 million
- total production of shirts in China = 50 million
- total production of computer in China = 5 million
with trade:
- total production of computers in the US = 20 million
- total production of shirts in China = 100 million
Answer: This means: "d. Your economic profit has gone down and your accounting profit has stayed the same."
Explanation: The difference between the accounting and economic benefit is associated with the type of cost that each includes:
The accounting benefit is nothing more than the difference between income and cost. In this case it is still $50000.
The economic benefit includes not only explicit costs. The economic benefit is the difference between income and total costs (explicit and implicit). Therefore, this benefit is less than the accounting benefit. Because in this case the cost of working at home is considered.