Answer:
If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Mary would specialize in making cakes while Tim would specialize in making pies.
Explanation:
a) Data and Calculations:
Mary's opportunity cost of making a cake = 2 pies
She can make additional 5 (10/2) cakes instead of making pies
This will increase her cakes to 25 a day (20 + 5)
Tim's opportunity cost of making a cake = 4 pies
She can make additional 40 pies (10 * 4) instead of making cakes
This will increase her pies to 60 pies a day (20 + 40)
When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.
Answer:
$9,937.89
Explanation:
The computation is shown below:
Given that
Current T-bill yield rate = 2%
Required rate of return = 2.5%
Time period = 3 months
We assume the face value be $10,000
So the willing to pay amount for a three month T- bill is
= Face value ÷ (1 + required rate of return × given months ÷ total months)
= $10,000 ÷ (1 + 2.5% × 3 months ÷ 12 months )
= $10,000 ÷ (1 + 0.625%)
= $9,937.89
<span>According to annual gift tax exemption you
are allowed to make gifts of up to $14,000 per year per person which is tax-free.
Now Patel gave his six grand children $30,000 each. So, Patel's gift tax exclusion on each individual is $14,000.<span> The amount above the annual limit
that is $14,000 to each individual has to be reported and counts toward Patel’s
lifetime exclusion.</span></span>