Answer: True
Explanation:
Yes, the given statement is true that the employing capital rationing is one of the process in which it placing some restriction on the investment amount of the project in an organization.
In the capital rationing strategy, if the company accepts less amount from all its prospective projects along with some positive net profit value (NPVs) the it is evaluated on the basis of their own risk.
The employ capital rationing helps in making various types of decisions related to investment for the company and in this system only limited projects are taken due to the limitation of the resources.
Therefore, The given statement is true.
Answer:
Delayed Payment means a purchase by a buyer in which title to the grain passes to the buyer at a determined price and payment to the seller is not made in less than twenty-one (21) days after delivery.
Answer 1) Option B) Shift to the right.
Explanation : If the amount of land available to the company increases, the PPC will shift to the right. As the graph indicates, the PPC will grow by shifting on right side as the company is acquiring more land for building purpose.
Answer 2) Option C) Remain Unchanged.
Explanation : The company realizes it cannot construct any buildings on a portion of the land because it is at risk of a cave-in.
In this case, the PPC will remain unchanged. When the company realizes that no construction can be done on the portion of land because of its hollowness the PPC will remain to be undisturbed.
Answer:
These statements are correct:
- It makes it easier to compare prices across Europe - the Euro is the common curriency across 19 countries, but prices in those countries are far from being the same. For example, Germany is a lot more expensive than Greece (although a lot wealthier too), and Greek people can easily find out that the same product in Germany costs more euros than in Greece.
- It makes Europe an optimal currency area - in the Eurozone, economic efficiency is now higher because resources can be allocated across different countries thanks to the fact that prices can be compared in the region.
Answer:
wages should rise and rents should fall in A
Explanation:
The Factor Price Equalisation Theory states that when two countries trade, the price of identical factors of production will tend to be equalised across the countries. Factors of production include wage rate and rent of capital.
So if a country that is labour abundant trades with another country A there will be tendency for exportation of the excess labour of country B to country A.
As a result country A will become more labour intensive and wages of workers will rise since focus is more on use of labour.
However since less capital will now be used the money spent on renting capital will reduce.
