Answer:
A)not negate the logical basis for trade in the Ricardian model.
Explanation:
Trade can be regarded as basic economic concept which involves the buying as well as selling of goods and services, having a compensation that is been paid by a buyer to a seller.
The Ricardian model can be regarded as model that incorporates the standard assumptions of a perfect competition. This model in it's simplest form give assumption of two countries that are producing two goods, but uses one factor of production, the goods here are usually assumed to be identical, or to be homogeneous, within as well as across countries. It should be noted that when there is higher wage, there will be greater number of workers that are willing to work and vice versa, which defined the relationship between wages and productivity. productivity gives the
measurement of how efficiently labor
is been utilized when producing goods and services.
It should be noted that If labor productivities were exactly proportional to wage levels internationally, this would not negate the logical basis for trade in the Ricardian model.
Answer:
The amount credited to common stock upon conversion of the bonds is $101000
Explanation:
When the bond was issued there would been a debit of $102000($100000*$102/$100) to cash account and credit of $102000 to liabilities split into $100000 bonds payable and $2000 bond premium.
However, on conversion to common stock with premium of $1000 outstanding in the books,the amount to be credited into common stock account is the issue value less outstanding premium.
The amount credited to common stock=$102000-$1000=$101000
This can be shown with entries below:
Dr Bond payable $100000
Dr Bond premium $1000
Cr Common stock $101000
Answer:
The effective rate of protection for Canada’s steel industry is 21%
Explanation:
The computation of the effective rate is shown below:
Steel percentage = (Production worth of steel) ÷ (Taconite worth)
= ($1,000,000) ÷ ($100,000)
= 10%
And the tariff rate for steel is 20%
And the taconite percentage is 10%
So, the effective rate would be equal to
= Tariff rate for steel + taconite percentage × steel percentage
= 20% + 10% × 10%
= 20% + 1%
= 21%
Answer:
Commits the fed to set a particular money supply so that it hits the announced target
Explanation:
The target rate and money supply need to be alligned for the FED to achieve its goals.
