Answer:
d. The skill level of workers is identical in both countries.
Explanation:
The Law of One Price is an economic theory which explains that the price of identical or similar goods in different markets must be the same after taking the currency exchange into consideration. In law of one price, there is perfect competition and It ensures that buyers have the same purchasing power across global markets.
Answer:
The correct answer is option C.
Explanation:
`If firms can easily enter and exit the market, then firms operating in the market will earn zero economic profit in the long run. This is because the short run is too short for firms to enter and exit so potential firms will enter and exit in the long run.
If the existing firms will be having negative profits, the firms having loss will exit the market. This will reduce market supply. As a result, the price level will increase. This will go on until all firms will have zero economic profits.
Similarly, if the existing firms are having positive economic profits in the long run, the other firms will enter the market. This will increase the market supply such that the price level decreases. This will go on till all the firms will be having zero economic profits.
Answer:
$3,860 will be needed to put into a tax-deferred retirement account every year if you plan on retiring in 40 years
Explanation:
Use Following formula to calculate the monthly payment required.
FV = P x [ ( ( 1 + r )^n ) - 1 ) / r ]
FV = Future Value = $1,000,000
R = RATE OF RETURN = 8%
N = NUMBER OF YEARS = 40 YEARS
P = Monthly Payment
$1,000,000 = P x [ ( ( 1 + 0.08 )^40 ) - 1 ) / 0.08 ]
$1,000,000 = P x [ ( ( 1.08 )^40 ) - 1 ) / 0.08 ]
$1,000,000 = P x 259.06
P = $1,000,000 / 259.06
P = $3,860.16
