Hoover raised the prices of wheat and grains during World War 1 in order to incentivize farmers to produce more for the market.
Answer:
It is provided that the consultant works for $200 per hour.
Since, for the exchange of her services as a consultant she gets to be paid through $200 monetary benefit, such benefit will not arise in case of growing of vegetables.
Currently she grows vegetables only for her needs, thus, she do not sell them commercially, and also as provided she is not good ion growing vegetables,
The chances of earnings through sale of vegetables is less, as the quality and quantity both served will be low.
Also for exchange of money $200 she can buy all the resources she needs to live, but as she will not be able to earn this much from sale of vegetables, she will not find the economic equilibrium from such sale.
Therefore, she should continue to work as a consultant.
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Current Consumption Marginal Rate of Substitution
= Marginal Utility (MU) of Pecan Pie ÷ Marginal Utility (MU) of Yogurt
= 2
Utility Maximized When Marginal Rate of Substitution (MRS)
= Marginal Utility of Pecan Pie ÷ Marginal Utility of Yogurt
= $3.75 ÷ $1.25
= 3
According to the analysis, Utility-maximizing MRS (3) is more than the current MRS (2). So to increase the utility bob should have to consume less pecan pie and more quantity of yogurt.
Answer:
Mauritania has an absolute advantage in the production of dates
Neither countries have an absolute advantage in the production of grains
Explanation:
A country has an absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
Ireland and Mauritania produces 10t grains. None of the countries have an absolute advantage in the production of grains
Mauritania produces 25t of dates while Ireland produces 5t of dates. 25 is greater than 5, so Mauritania has an absolute advantage in the production of dates
