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Katyanochek1 [597]
3 years ago
10

El Salvador has a population density of about 620 people per square mile and neighboring Honduras a population density of about

115 people per square mile. According to the factor proportions theory of trade, one would expect El Salvador's exports to Honduras to
Business
1 answer:
BaLLatris [955]3 years ago
7 0

Answer:

have a higher labor-to-land ratio than its imports from Honduras

Explanation:

The factor proportions theory  (or Heckscher-Ohlin model) of trade states that countries will export the goods which they can produce using their abundant factors of production. For example, countries like Japan that have abundance of labor force and capital, but very little land, will produce and export industrial goods that require a lot of labor and capital. On the other hand, countries like Argentina which have abundant labor and land, will export agricultural products.

in this case, El Salvador compared to Honduras has abundant labor, so the products that El Salvador exports to Honduras will have a higher labor-to-land due to the abundance of labor.

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Lena [83]

Answer:

The seller may reject the offer and choose to provide a counteroffer.

Explanation:

In a free-market environment, a seller has the option to accept or decline an offer for what he is selling, in this case, a house. Furthermore, he can propose a counteroffer to see if the buyer is able and willing to pay more for that house. Taking this simple rules into account, the seller may reject Kelly’s offer if he wants and can choose to make a counteroffer.  

4 0
2 years ago
The Daily Grind sells coffee makers. Its inventory of coffee makers without timers cost $20,000 and is now valued at $10,000. It
zysi [14]
Daily grinds inventory value = coffee maker with timer value x n units + coffee maker without timer in x  n units

where:
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Daily grinds coffee maker inventory value = ($35000 x 5)+( $10000 x 5)
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5 0
3 years ago
Which of the following things can help you get a lower interest rate when you receive a loan? A. A low credit score B. A history
Roman55 [17]

Answer:

Collateral

Explanation:

4 0
2 years ago
Read 2 more answers
Wild Swings Inc.’s stock has a beta of 2.5. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate o
Bess [88]

Answer:

r = 0.235 or 23.5%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

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r = 0.06 + 2.5 * 0.07

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3 0
3 years ago
California wildfires destroy vineyards across the Napa Valley. This is during the season when wine festivals occur most often al
vladimir2022 [97]

Answer:

As a result of the wildfire, supply would fall. there would be a leftward shift of the supply curve.  the quantity supplied of wine would reduce and price would increase

as a result of the festival, there would be an increase in demand. this would lead to an outward shift of the demand curve. Thus, the quantity demanded would increase and price would increase

taking these two effects together, there would be an indeterminate change in equilibrium quantity and equilibrium price would increase

Explanation:

3 0
2 years ago
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