- $15 loss is the answer
Solution:
Given,
The exchange rate is $2.00 = pound £1
The exchange rate is $1.50 = pound£1
You pay pound£45 ($90)
Now.
Buy ( $2.00 x 45 pounds = $90)
Sell ($1.50 x 50 pounds = $75)
=> $75 - $90 = - $15 loss
Answer:
Based on the answer to the question, the only one of the given terms of trade (that is, price of stained glass in terms of jeans) that would allow both Sweden and Italy to gain from trade is 8 pairs of jeans per pane of stained glass because 8 pairs is more than 4 pairs, which will be attractive to ITALY and is less than 10 pairs which is a cheaper cost for SWEDEN.
Explanation:
1. Italy's opportunity cost of producing a pane of stained glass is 4 pairs of jeans while Sweden's opportunity cost of producing a pane of stained glass is 10 pairs of jeans
2. By comparing the opportunity cost of producing stained glass in the two countries, you can tell that SWEDEN has a comparative advantage in the production of stained glass and ITALY has a comparative advantage in the production of jeans.
3. Suppose that Italy and Sweden consider trading stained glass and jeans with each other. Italy can gain from specialization and trade as long as it receives more than <u>4 Pairs </u>of jeans for each pane of stained glass it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than 0.1 pair of stained glass for each pair of jeans it exports to Italy.
4.Based on the answer to the last question, the only one of the given terms of trade (that is, price of stained glass in terms of jeans) that would allow both Sweden and Italy to gain from trade is 8 pairs of jeans per pane of stained glass because 8 pairs is more than 4 pairs, which will be attractive to ITALY and is less than 10 pairs which is a cheaper cost for SWEDEN.
Answer: $18,280
Explanation:
Ending inventory for fabricating department = Beginning Work in Process + Direct materials + Direct labor + Factory overhead - Inventory transferred out of department
= 11,600 + 77,600 + 25,600 + (80% * 25,600) - 117,000
= 11,600 + 77,600 + 25,600 + 20,480 - 117,000
= $18,280
Answer:
d
Explanation:
Nominal interest rate = real interest rate + inflation rate
6 - 2 = 4%
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
if inflation declined by 2 percent, it means purchasing power increased by 2%.
Total increase in purchasing power = 6 + 2 = 8
Answer:
False
Explanation:
It's not prepared for each correspondent.
