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Gre4nikov [31]
3 years ago
13

If country ABC can produce a unit of good 1 by sacrificing fewer units of good 2 than can country XYZ, it is correct to say that

country ABC A. has an absolute advantage in producing good 1. B. will not wish to trade good 1 with country XYZ. C. will import good 1. D. has a comparative advantage in producing good 1.
Business
1 answer:
Zinaida [17]3 years ago
4 0

Answer:

has a comparative advantage in producing good 1

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries. Country abc has a comparative advantage because it sacrifices fewer quantities of good 2.

Country abc should specialise in production of good 1, while country xyz should import from country abc.

A country has an absolute advantage in the production of a good or service If it produces more quantity of the good compared with other countries.

I hope my answer helps you

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The Fed sells $5 billion worth of T-bonds on the open market.
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3 years ago
On January 5, 2020, Sheffield Corporation received a charter granting the right to issue 5,100 shares of $100 par value, 7% cumu
andrew11 [14]

Answer:

 Sheffield Corporation

Journal Entries

Date             Description                              DR                           CR

Jan 11         Cash                                       292,500

                 Common stock                                                     195,000

                 Paid in Capital for common stock                         97,500

               

              <em>Being the amount received on issue of </em>

<em>              </em>

Feb 11     Equipment                                   53,300

              Factory Building                          152,000

              Land                                             295,000

             Prefereed stock                                                     410,000

             Paid -in -capital for Preferred stock                        90,300

July 29   Treasury stock                              25,600

              Cash                                                                            25,600

            Being the payment of own share purchased

Aug 10    Cash                                                   22,400

                Retained Earnings                               3,200

               Treasury stock                                                      25,600

 

Dec 31       Retained  earnings                              10,025

                 Dividend(0.35*19500)                                            6,825  

                 Treasury stock                                                         3,200  

Dec 31       Net Income ( Income Summary)      158,400

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Balance sheet as at Dec 31

Equity

Common stock at $10 par value                                      $195,000

7% Preferred Stock                                                            410,000

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Paid in capital for Preferred stock                                        90,300

Retained Earnings ( 158,400-6825-3200)                         <u> 148,375</u>

                                                                                             <u>  941,175</u>

Explanation:

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3 years ago
Which of the following is an example of​ investment? A. a person depositing $ 100 a week to her savings account B. a person's an
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Answer:

C. the purchase of new buses by Greyhound

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The investment is the amount that should be invested in order to generate the income

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3 years ago
A firm's diversification strategy is most likely to add value if:________. a. There exist economies of scope between diversified
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Answer:

Option A. There exist economies of scope between diversified business units

Explanation:

The reason is that diversification is lowering the industry risk of the business the company is in by investing in several other industries. This helps us to lower the risk and have a steady returns in the subsequent years. This means uncertainty related to cash flows is lowered and this has also increased the chances of cash surplus for subsequent years.

Furthermore, if the investments made in diversified business units possesses economies of scope, which means that we are in related diversification because we are manufacturing different but similar goods which are substitutes to each other from large to some extent. This brings economies of scope and would lower the total operating cost of company. Hence the <u>Option A</u> which says that economies of scope does add value to the company is the right option.

Option B is not preferable option as the option of investing in different businesses is choosen in the option A.

Option C is again the same as Option B and the difference is that it uses the word several unrelated businesses instead of comprehensive business portfolio which is the same thing. Hence <u>Option C</u> is also not preferable option here.

<u>Option D</u> is incorrect because when we acquire an organization it is the move of increase in risk portfolio because acquisitions are mostly not a sound investments and not a part of diversification strategy as the company is putting all the eggs in the single basket.

4 0
3 years ago
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B. A deposit is money that is subtracted from a bank account. When you deposit money, you are adding money into a bank account. When you withdraw money you are subtracting money into a bank account. Because this question refers to subtracting from a bank account, this is false.

5 0
3 years ago
Read 2 more answers
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